Archive for the ‘SMG Favs’ Category

Rentrak versus Nielsen: It’s not a political race but it has our attention.

Tuesday, March 19th, 2013

tv new

Nielsen is the leading global information and measurement company that birthed market research, “Nielsen ratings”, the “people meter”, and the concept of “market share”; Rentrak is Nielsen’s greatest and latest competitor. One thing on an advertiser’s mind today is, should we be considering trading in Nielsen’s services for Rentrak’s?

Nielsen’s story…

people meter

Nielsen was founded in 1923 by Arthur C. Nielsen, and his vision for his company was selling engineering performance surveys. Eight years later, Nielsen acquired the Audimeter, the device that told what radio stations listeners had tuned into during the day. Four years later, the national radio rating service was born. And now, Nielsen has been measuring both radio and television consumption since the dawn of TV. The Nielsen audience measuring system we use today works like this: devices attached to the TV record what is being watched, and in smaller sample homes, viewers fill out a diary of what they watch on TV. This data from the device and diaries allows for estimating the number of Americans watching TV as well as the demographic make-up of the audience.

Rentrak’s story…

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Rentrak was founded in 1977 by Ron Berger, but his company started as a national video chain called National Video. His vision for National Video was to provide a system to allow studios and retailers to lease movie titles, or “rent movies”, rather than purchasing them. Ten years later, the rivalry between National Video and Blockbuster Video pushed National Video in another direction and Berger changed the name to Rentrak (think Rental Tracking). In 2009, Rentrak was the sole provider of global box office ticket sales information for studios and business and entertainment forecasters. A short time later, Rentrak acquired a local TV measurement service. Today, Rentrak has a product that measures overall daily media consumption and audience behaviors across all channels: box office, DVD, download, etc. The Rentrak television audience measuring system works like this: Rentrak measures audiences through set-top-boxes so viewers are counted by just turning on their TV. Rentrak’s TV Essentials service tracks data from set-top-boxes (STBs) in AT&T U-verse, DISH Network, and Charter Communications households. This model can be thought of as “passive participation” as opposed to Nielsen’s “active participation.

• Whose ratings are more accurate? While Rentrak shows a more stable view of TV usage, it does have some limitations:

o It does not collect demographic data, the jurisdiction behind all media plans.
o The data is only collected from satellite homes, yet the satellite homes are still representative of non-cable and non-satellite homes (however non-cable and non-satellite homes only make up about 10% of total households.)

Nielsen’s methods to providing ratings bring up these concerns:

o The larger markets don’t have equal meter placement, a major concern as mentioned in this article http://www.tvnewscheck.com/article/56019/rentraks-influence-growing-in-ratings-wars 

o The diaries they use in the smaller markets are sloppy, illegible, and poorly documented.

o A small percentage of filled out diaries actually come back to be measured. If thousands are distributed, only hundreds come back.

We know Rentrak’s numbers are more accurate but many would argue that both Nielsen and Rentrak seem to have a faulty currency as it stands.

• Who tracks more households? PPBH, a Utah based advertising agency, compared Nielsen and Rentrak in the Salt Lake City market and confirmed in that DMA Nielsen tracks 410 homes and Rentrak monitors more than 50,000 DISH satellite households. Here is the full article on their investigation http://www.rentrak.com/downloads/Exact_Commercial_Ratings_Presentation.pdf. It’s the same story in Nashville (approximately 600,000 households versus 400 households respectively) and Columbus (150,000 households versus 500 households). The question was who tracks more households but the real question is does that matter? It is still undecided as to why Rentrak’s ratings are usually higher than Nielsen’s but one assumption is that it’s due to the fact that Rentrak has a larger household count and if that was the case then we would be comparing apples to oranges. Both results need to tell the same story so if the sample size is causing the inconsistency in the two, then agencies should actually consider using Rentrak as a complimentary service to Nielsen.

• Who shows a more accurate picture of station share and viewership levels? Rentrak and Nielsen both seem to show that the trends between stations are the same. In the PPBH investigation, they were in agreement on the station that had the highest household ratings in November 2012, what station had the lowest, and what station is picking up speed in 2013.

Who wins? Nielsen is still the primary source of audience measurement but Rentrak is gradually acquiring momentum. It will be interesting to watch this play out between the defender and the challenger and will give us here at SMG another good race to follow in this non-political season. Some have placed bets that Nielsen will purchase their competitor. I guess we’ll have to wait and see.

Super Bowl Infographs

Tuesday, February 26th, 2013

Much of the post-Super Bowl buzz is usually about the game and favorite or worst commercials. However, there is plenty of interesting data on the viewing habits, which is more useful for agencies. Nielsen and other third party vendors compiled several infographs discussing the three-screen approach and the prevalence of Twitter below.

2013-Super-Bowl-Infographic-Nielsen-Wire-version1

Pre-Super-Bowl-Ad-Spend-Wire-2

viralheat_super_bowl_infographic

Tweet Ads Infograph

 

 

Google Glass

Friday, February 22nd, 2013

On Wednesday, Google released a YouTube video of their latest technological advancement, Google Glass.  It is the equivalent of Bluetooth earpiece, but for your eyes.  It can record, bring up information, all hands free with a voice command. Below is the video:

The advertising and creative possibilities are endless. It takes the second screen approach to another level.  Ad Week already explored the ramifications on the industry in this article: http://www.adweek.com/news/technology/why-brands-are-already-looking-google-glass-and-why-apple-should-be-worried-147435

Here are some of the highlights:

  • It could replace smartphones as the new hip technology
  • Advertisers will be lining up to deliver ads directly to your eyes
  • The creative interactive storytelling could be limitless
  • However, it is $1,500 and a year away.

Nielsen Agrees to Buy Arbitron

Tuesday, December 18th, 2012

This morning, television ratings company Nielsen agreed to purchase the leading radio ratings company, Arbitron, for $1.26 billion dollars. Despite the trend toward internet radio like Pandora and iHeartRadio, 92% of Americans still listen to traditional radio for an average of two hours a day.  This move will help streamline the two largest survey companies in the ever changing media landscape as the two companies have a combined revenue of $6 billion. It is yet to be determined what this means for Arbitron’s media research products like Scarborough’s Prime Lingo and National Regional Database.

More information can be found on their press release:

http://arbitron.mediaroom.com/index.php?s=43&item=853

Kids May or May Not Pick the President

Wednesday, October 10th, 2012

As if getting through one Election Day isn’t enough, there is another Election Day the presidential candidates will have to endure. This election’s results are not official, but they have proven reliable when prophesying the outcome in November.

This pre-Election Day forecast comes in the form of a Nickelodeon TV special called “Kids Pick the President: The Candidates”. It is part of “Nick News with Linda Ellerbee”, the country’s longest running news program for kids. During the special, kids from across the country directly ask the candidates questions about the current issues of the election and then cast their votes for their favorite candidate. The special has earned credibility as it has predicted the winner of five of the past six elections.

In election years past, voters and election enthusiasts could tune in to Nickelodeon just weeks before the election to get a taste of that year’s impending outcome. This year, don’t make any bets off of the kid’s votes as only one candidate, Barack Obama, is participating in the special’s questioning ritual.

It is no surprise that Obama was able to fit the taping into his schedule, but is it a good move on his part? He has been recently criticized for meeting with talk show hosts and a pirate, so turning down questions from the “future of our country” could add fuel to that fire. Also, many supporters could commend him for taking the time to answer questions from people who won’t be showing up at the real polls, something his opponent cannot be praised for. On the other hand, this could be a gain for his critics as he is still being condemned for declining a meeting with the Israeli Prime Minister, so giving time to Nickelodeon could confirm opinions about the ranking of his priorities.

As for Mitt Romney, according to this article on The Hollywood Reporter website, he declined the taping with Nickelodeon because he was unable to fit it into his hectic schedule. While he may receive criticism for declining the taping, supporters can argue that Obama having more time on his hands for Nickelodeon than Romney does is a reflection of the job he’s doing in the White House. Also, by not fielding questions from citizens under the legal voting age shows that he’s not flip-flopping on his free-loaders comment. I think declining involvement in the special is a good move for his campaign, but I predict he won’t be the candidate the kids elect.

To stand in for Romney, the producers of the special will select previously taped clips from the campaign trail. The special premieres on Nickelodeon on October 15th at 8:00 p.m. and the results of the poll will be revealed on October 22nd.

Politics As Entertainment

Monday, June 11th, 2012

Candidates need to be ready to craft their Hollywood pitch

Mandie Suits

And the winner is…both!  That was the outcome of the Kristen Bell-Toby Keith-hosted debate in the opening segment of Wednesday night’s CMT Music Awards. The show began with the two performers campaigning for the top host spot of the night. Voters for this election included the likes of Jon Bon Jovi and Matthew McConaughey, as well as President Obama and Mitt Romney. The president and his challenger appeared in separate skits where they deliberated over their votes for host. In the end, the politicians proposed that Bell and Keith equally share the spotlight. 

That isn’t the only thing they agree on. The other is finding a place for their campaigns in the entertainment world. Hollywood and awards shows may not be on Romney’s radar by choice, but he has to be where the competition is. Last Sunday night, Obama’s campaign aired its first national TV spot during the MTV movie awards. The 30-second ad consisted of actress Sarah Jessica Parker introducing Obama’s latest fundraising effort – a sweepstakes for a dinner with her and the first lady at her house on June 14. 

In response to Parker’s commercial, the Republican National Committee released a web video pointing out that the unemployment rate rose to 8.2 percent at the same time as Parker was publicizing this swanky fundraiser.

This isn’t the first Hollywood fundraiser for Obama. George Clooney recently hosted an event at his home in Los Angeles that raised nearly $15 million for the president and just on Wednesday Obama was at Glee creator Ryan Murphy’s Beverly Hills mansion for a funder.

Hollywood seems to have made it clear where its support – and money – is going. But will there be celebrity backing – and the media coverage that goes with it — for the GOP side this year?  It doesn’t look like it, at least if this past Tuesday is anything to go by.

Gov. Scott Walker (R) won the recall election in Wisconsin on the same day actor Liam Hemsworth proposed to former Disney Channel actress Miley Cyrus. NBC, ABC and CBS spent more minutes covering the couple’s engagement and minimal time on Walker, which shows the campaigns where people’s priorities are.

A version of this post was also published on Campaigns and Elections.

More Anytime than Primetime in the Online TV World

Thursday, April 19th, 2012
Forget the living room. Television is now accessible while you’re, say, riding the metro into work, when you sit down at your desk (during your lunch break, of course), or while you’re waiting in line at the bank. There’s really no time during the day, as long as you have a Smartphone or tablet, that you can’t access online video. So what’s all this talk about dayparting digital into primetime segments like regular TV, does it really make sense? Let’s take a closer look.

Traditionally, TV ad time is purchased by dayparts, which are priced by when a defined target audience has the highest viewership. The majority of American adults typically watch TV during the primetime hours – 7-10 p.m. on weeknights — so naturally those time slots are more expensive. Overnight programming, when Richard Simmons is demoing his latest fad workout, tend to be the cheapest spots. It makes sense for campaigns to purchase TV spots during dayparts where there’s potential for the most viewers. Still, a spot will air whether there’s a large audience watching or not. But do the same rules apply across the online video landscape? Let’s take a closer look at online viewing habits.

There’s no doubt that online video consumption is growing exponentially. Comscore reported earlier this year that 181 million Internet users watched 40 billion videos online in the United States alone. A Mediapost blog argues that online video is most effective when there is the largest and most engaged audience, notably 8-10 a.m. I disagree. I don’t believe that because more people are watching there’s a good enough argument for more intense engagement. What I don’t disagree with is the effectiveness of an “engaged” audience. Of course you want to reach a voter or consumer with your ad when they’re engaged in the content they’re watching. But what makes them more engaged that early in the morning?

The whole reason I value online advertising is because it allows you to target the exact audience you want, anytime of day, when they’re interacting with content on the web.  Because of the sophistication of targeting of online video — or any other online ad type — time of day doesn’t matter. Moreover, time of day doesn’t have anything to do with worthwhile message exposure. We buy online video by 1,000 impressions. Of these 1,000 impressions 100 percent will reach people who fall within the targeting defined at the beginning of your ad campaign.

Unlike TV, the impressions you purchase, if you’re using a quality online partner, are only going to show to those people you’re looking to target. Running your online ad messages whether or not it’s a “primetime” viewing time is irrelevant in my opinion. By dayparting online you could be missing out on quality impressions to a consumer that you want to be targeting, who might just have different viewing habits from online “primetime” norms.

Thoughts on 2012 Election

Friday, March 30th, 2012

Thoughts on 2012 Election

On Wednesday night, Sarah Stone and I went to the Pohick Regional Library in Burke, Virginia to hear what Chris Cilliza had to say about the issues surrounding this year’s presidential election.  If you do not know Chris, he has a Washington Post blog called The Fix and is a political contributor to MSNBC.  Needless to say, the hour and a half discussion was interesting.  Most, if not of all, of what he said is already known to political-minded people (like Sarah).  I, on the other hand, needed to take notes and I am glad I did.  I later went back to the notes and highlighted quotes I thought I might want to use in a blog post.  However, instead of using them as quotes, I thought I would just use them as talking points to help summarize some of Chris’s discussion regarding the presidential election. 

“Obama is as strong as he’s going to be while Romney is as weak as he’s going to be.”  When Chris said strong, he meant cool, referring to Obama hitting three-pointers and singing Al Green on key.  In a new CNN poll released last week, Obama’s approval rating is over fifty percent.  At the same time, the exit polls are showing that voters are seeing the economy as the most important issue right now.  It is hard to deny the truth that many voters like Obama.  They find him to be likable and relatable and will vote him in for another term, regardless of their views toward the economy and direction of the country. 

Chris was spot on about Romney being as weak as he’s going to be.  In an article on ABC News, one poll shows that only 34% of Americans favor him for president and that is the lowest for any presidential candidate since 1984.  His main challenges right now are low popularity when compared to Obama and low support in the Republican base.  However, history proves that springtime favorability should not be taken seriously as Romney’s support base will grow once he becomes the GOP Presidential candidate.  He is continuing to move in a positive direction as he has recently received endorsements from President George H.W. Bush, Marco Rubio, and Wisconsin Congressman Paul Ryan. 

“Republicans have a Hispanic vote problem to face.” Another area where Romney can gain support is with Hispanic voters.  The Hispanic population has grown by 43% since 2000 and Hispanics tend to vote democratic.  Obama won 67% of the Hispanic vote in the last election and Democrats won 60% of their vote in House races in 2010.  As it stands now, this is a threat to the Republican Party because Hispanic communities are growing in predominantly Republican states like Arizona and Texas.  Due to this influx of Democratic voters, political scientists are predicting these states, along with several other battleground states, will be Democratic states by the time the next election rolls around.  However, this can actually be good news for Romney because Republican leaders are going to increase their efforts on connecting with Hispanics but not for the purpose of winning their votes.  Many Republicans and political leaders like Jeb Bush, as quoted in one recent article, believe that Republicans and Hispanics naturally have a lot in common, like principals surrounding freedom, family, entrepreneurial ideals, religion, and quality education.   If Republicans tout these similarities, a significant part of the population could find Romney more relatable and likeable than Obama and they still have plenty of time to do so. 

“The 2012 election is going look more like 2004 than 2008.”  This statement is obvious, but some people may still be anticipating another heated and entertaining battle to the White House, forgetting the many contrasts between this year and the last election year.  Facebook users are probably noticing their Facebook friends gearing up and preparing to share or defend their political beliefs online, but there could be disappointment in the reduced level of excitement surrounding this year’s race due to what it is lacking.  In 2008…

  • Neither candidate was the incumbent President or Vice-President. 
  • It was following the onset of the economic crisis and both candidates ran on platforms of economy, change, reform, and domestic policy.
  • The public’s perception of the current President was low – criticizing him for the Iraq War and the federal response to Hurricane Katrina. 
  • This was the first presidential election where one candidate was African American.
  • This election utilized many social media websites for the first time, which increased the reach and engagement with voters between the ages of 18 and 29 as well as providing a platform for voters to express their opinions regarding the election.
  • There was plenty of newsworthy controversy around one candidate for the opposing party to take advantage of.
  • The media took sides, or so people felt.  One 2008 poll showed that 70% of voters felt the media wanted Obama to win.
  • There was a vast difference between the candidates.  One Senator being fresh, charismatic, and inexperienced, while the other Senator lacking star power in comparison, but was a Vietnam War POW with experience.

“The George Allen and Tim Kaine Senate race will be the marquee race.”  Virginia is a major battleground state and Chris says the nation should focus on this U.S. Senate race for a preview of the presidential outcome.  This race will be interesting because Obama won Virginia in 2008 but Virginia elected a Republican governor in 2009 and won House seats in 2010.  There is hope for both sides but the race between the two former governors of Virginia is currently too close to call.  This should be worth paying attention to because this general election is going to be about state by state, not national. 

 

 

 

‘Quadrennial Effect’ Means Sound Economy and Peace of Mind

Monday, March 19th, 2012

 It is hard to believe the media when they say the Great Recession is no more.  If you have a hard time believing so due to soaring gas prices, the unemployment rate, or number of bankruptcies you are informed of, you are not alone.  According to USA Today, a recent poll shows that 63% of Americans believe the U.S. is still in a recession and 55% thinks the economy won’t fully recover until 2013 or later.  Can the media blame them?  The lack of healthy economical signs support this reasoning and validates Americans’ low consumer confidence.   However, 2012 is the year of the ‘Quadrennial Effect’; that’s not another term for the end of the world, it’s a sign of positive change.

The Quadrennial Effect is a series of significant events that occur every four years.  These events occurring in 2012 include the Presidential and Congressional elections, Summer Olympics, and European Soccer Championships.  The monetary and economical impact from these events brings a little peace of mind to policy makers as this affect is a stimulus package in the form of advertising.  These events that make up the Quadrennial Effect encourage significantly more advertising spending, which is put back into the economy and creates a nice financial cushion that the governments can’t provide. 

Even as the U.S. is recovering, the Quadrennial Effect has perfect timing.  The European Union is still in a period of reduced economic activity that this great coincidence is sure to neutralize.   Experts feel positive about the Euro Crisis because they are predicting that global ad spending will reach nearly $5 billion by the end of the year, a 5% increase from last year.    Without the Quadrennial Effect, global ad expenditure for 2012 would see a 5% decrease.

Another positive sign that things are defusing in Europe is that developing markets overseas are the biggest contributors to the impending momentum.  According to ZenithOptimedia forecasts, between 2011 and 2014, 60% of all of the world’s growth in ad spending will come from developing markets.  Brazil, Russia, India, and China are predicted to account for 33% of growth, while Indonesia, Argentina, South Africa, South Korea, Mexico, and Turkey will contribute another 16% of growth.

Here in the homeland, we are already seeing a portion of the Quadrennial Effect take effect.  In this case, political campaigns are contributing to the economy in two ways.  First, political coverage surrounding their campaigns provides valuable inventory for advertisers to buy.  On the other hand, they are the consumers buying up inventory in TV, radio and online.  To date, presidential campaigns have already spent $95 million on TV and radio advertising this year, and roughly another $6 million in internet advertising.  That does not include Senate and Congressional races.  Plus, it’s only March and this year’s presidential campaigns are predicted to execute the highest amount of spending in history.  So next time you start to complain about political ads cluttering your TV, think of all the money it’s generating for the economy.

As advertising budgets grow, so should consumer’s confidence.  If you would like to follow ad spending for a peace of mind, there are many online resources that offer this type of insight, like Ad Age and Media Post.  For the best insight into political ad spending, follow Smart Media Group on Twitter or like us on Facebook.

The Tortoise and the Hare: How Digital Media is Giving Traditional Media a Run for its Money

Monday, March 19th, 2012

From a world where television, radio and print ruled the advertising space, the consumer shift to online via desktop, mobile and tablets has forced advertisers to think about how digital media can work alongside their traditional media.  Internet usage is growing fast, yet some advertisers are still hesitant to shift advertising dollars online. We all know the famous fable of the Tortoise and the Hare where the speed of the hare would certainly lead to a victory in a head to head race. However, the tortoise surprises us all.  The same misconception about the ability for online media to reach the same amount of people as TV is mounting; in this case too it’s important not to underestimate the power of digital. Understanding the volume of active online consumers, the opportunity for gaining audience insights and measuring campaign success, together, suggests why digital media should not be ignored.

It’s vital to grasp how quickly internet has grown in terms of consumer usage. Pew Internet reported that around 79% of adults 18+ use the internet, compared to 46% in 2000.  People are using the internet for a variety of reasons from entertainment to news to connecting with friends. Furthermore, online video consumption is growing exponentially. Comscore reports that over 180 million US internet users watched online video in one month alone in 2011 for an average of 18 hours per week. Additionally, they measured that 71.6% of web users watch online video content each week. While some may assume that this is a trend that only caters to the youth, a study done by BurstMedia shows that the 55+ demographic isn’t too far behind the 18-34 demographic in terms of weekly online video content consumption (53.8% compared to 79.2%).

Because of the scale in which American adults are engaging with online video content, this provides advertisers with a sizeable opportunity to connect with their target audiences, drive traffic to their websites, gather email addresses, collect donations, or simply spread brand awareness. Research done by eMarketer shows that online video content is more likely to engage and encourage interaction than standard display media. In fact, 51% of all pre-roll ads are watched in full and 2.7% of viewers click through to the advertisers landing page (that is compared to a .07% standard display average click-through-rate). Even more impressive, they found that 18.2% of all online video viewers took an action based on what they saw in the ad.

The beauty of online advertising is that each impression (or ad view) is measurable on a variety of different levels.  Advertisers can not only connect with their target audiences but can now measure campaign return-on- investment (ROI) by setting goals at the front end of the campaign. Maybe your goal is to collect email addresses for further direct marketing; through online advertising we would be able to calculate how many people came from your ad and signed up to receive emails.  Or maybe your goal is simply brand awareness and getting your message in front of the most eyes. By communicating your message through online video we would be able to track how many people viewed the video, how long they viewed the video, and if they clicked through to the website.  Additionally, combining online with a traditional ad spend is likely to significantly increase brand awareness.  Nielsen reports that the combination of these two mediums will likely generate an 18% lift in brand recall than if TV was purchased alone. Adding interactive into any media plan not only extends reach and expands the ability to test messages across audiences and measure success, but also creates an opportunity to stand out among the competition.

As we get deeper into the 2012 election year, campaigns and issue groups who realize the massive reach and invaluable opportunities accessible to them via the internet will have the most success. So while traditional media may be the “obvious” front runner, like the Hare in Aesop’s fable, do not discount the internet for there is much it can achieve if you recognize its ability.