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From Our Blog Posts

  • The Future of the Infomercial in a Connected TV World

    Infomercials have been a staple of television advertising for decades, but with the rise of […]

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  • Business Conference

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  • Balancing the Challenges and Benefits of Television Advertising 

    5 Min Read In the past, television advertising could only really be used to promote awareness of brands. Without measurement and attribution, it was nearly impossible to understand the details of your campaign performance. While you could see overall growth, you couldn’t pinpoint it to a specific campaign or piece of video creative—brands could only really spread their message and hope it stuck. Now, thanks to Connected TV (CTV), all of this is changing—but how?  To find out more, MNTN Research and Retail TouchPoints polled leading retail advertisers, and now we’re sharing the results. Tim Edmundson, Senior Director of Content Marketing and Research at MNTN, recently joined Retail TouchPoints to review the results, present key findings, and share best practices for television advertising.  An Overview of Television Advertising in 2023  We wanted to see how marketers are adjusting their television advertising strategies throughout 2023 and beyond. So, we asked!  How Are Advertisers Using CTV vs. Linear TV?  Amid continued economic uncertainty, we know many marketing budgets are under close watch. We asked retailers how they’re balancing their current budgets, and many of them had a focus on video. No matter the format, TV is a prestigious and impactful ad channel.    When it comes to television advertising, retailers said they’re advertising on: 9.48% Connected TV only 8.62% linear TV (LTV) only 50% both CTV and LTV 31.9% neither While some folks are utilizing one or the other, half of the marketers we surveyed have implemented both LTV and CTV into their marketing mixes. Brands that have used linear TV in the past might assume CTV will be a similar experience.  While this can be the case, many marketers are more familiar with modern CTV platforms than they might think. Certain Performance TV platforms, including MNTN, have features that more closely resemble the self-service features of search and social media ad platforms than anything to do with linear TV.  But over one-third of marketers said they don’t use TV ads at all. Other marketing leaders said they weren’t adding CTV into their overall marketing mix. And we wanted to know why. The three key reasons cited were:  Awareness  Cost Education and resources  While CTV ad spend continues increasing, there is still a significant portion of folks who aren’t aware of the benefits of the platform, but the days of crafting broad video ads are gone.  What Can You Accomplish with CTV? While you used to be stuck waiting and hoping your content might resonate with at least some of your viewers, you can now instantly gain insights into your campaign.  CTV offers the ability to reach a wider variety of goals than LTV. While you absolutely can use certain CTV platforms to drive awareness, it’s the performance goals that really allow the platform to shine.  Is My Brand Ready for CTV Advertising?  One of the most important questions we received during the webinar was: how am I supposed to know when my brand is ready to air CTV ads?  In general, the answer is: if you’re asking, you’re ready.  With a large portion of marketers already on CTV, there’s a good chance your competition is already there, reaching your shared audience segments.  Even for small and local businesses, CTV can still be an incredibly powerful marketing tool. At MNTN, we work with a lot of regional retailers, and even brick-and-mortar businesses can target audiences by location. People are watching streaming platforms everywhere, so you can still connect with local audiences through Performance TV’s targeting capabilities.  Find the Right Platform for Your Goals  When diving into the technical functions of CTV solutions, the first thing you need to know is that not every platform is created equally. But don’t worry—there’s good news. No matter what your goals are, there’s a solution out there for you.  Before you jump in, you’ll need to understand your goals. Then, as you shop around the CTV space, keep in mind the difference between awareness and performance goals. You’ll want to know which you’ll need (the answer can be both!) to reach your goals, so you can ensure the platform has those features.  If you’re focused on awareness, you’ll need to reach a significant amount of people. But if you’re looking to add CTV to your performance marketing strategy, you’ll need a platform that can provide:  Effective measurement, so you know how you’re progressing toward your goals.  Accurate attribution, so you can feel confident about each part of your strategy.  Specific targeting, so you can reach your ideal audience.  To make sure you get these features, you should ask certain questions, including:  Where will my ads run? Will they be displayed across channels, apps, and platforms?  Do you utilize premium or traditional digital video inventory?  Can I use different data sources?  How can your platform help me reach my goals?  How does reporting work? Is it real-time reporting?  With the right CTV ad platform, you can combine the power and prestige of television advertising with a measurable performance strategy. Plus, with straightforward, self-service features, more advertisers can successfully launch ads on the leading streaming platforms.  Anchor Your Campaign With TV Advertising  It’s time to rethink your approach to TV advertising.    Today, television ads can act as an anchor for your entire marketing campaign. You can use TV as your prestige channel, and then expand upon it on other channels, like search and social media.  As more marketing teams focus on creating a well-rounded marketing strategy with awareness and performance goals, CTV can be the foundation that lets your brand sail past the competition. To learn more about the best practices for television advertising in 2023, watch the full webinar here.

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  • What inflation’s cultural impact means for marketing

    When inflation is high the cost of living rises and wages, although rising too, never quite keep up. This has an impact on our pockets. But in addition to the economic consquences of inflation, there are subtler cultural consequences too. That’s something marketers need to understand. Kate Muhl, a consumer insights expert and VP, analyst at Gartner, shared this insight. “It’s important to think about the idea that there’s more happening with inflation than just economic impact and consumer spending. Those effects start to fade. We’re not where we were a year ago — but lots of consumer attitudes and behaviors are still ripple effects out of that initial inflationary moment.” What the research shows. The 2023 Gartner Cost-of-Living and Price Sentiment survey revealed the following: A third of households reported financial hardship due to price increases with the most impact felt by low and low-to-middle income households. 38% of respondents reported cutting their discretionary income (a YoY increase of 15% on 2022). More than a third have increased spending on store brands and increased their use of coupons. Over 40% report switching to generic brands, store brands and less expensive products in at least one product category. 57% reported postponing a milestone event (such as a wedding or vacation) due to cost-of-living pressures. Against this background, consumers and marketers are divided on what responses are appropriate. CMO priorities include increasing the availability of a product or service, offering special deals and increasing rewards and benefits. Customers agree on the special deals, but their other priorities are keeping prices steady and, interestingly, not seeing high-level executives get pay raises. In Muhl’s view, this reflects a growing sense, especially among younger consumers, that the system is “rigged” in favor of the wealthy. “A lot of this is about consumer sentiment, culture,” said Muhl. “How does it feel? What are people’s prevailing opinions about how the world is working? Those things matter to brands.” This doesn’t mean marketers should blindly switch to their customers’ priorities. “Consumers are consumers,” said Muhl. “Our job is to be marketers, but as marketers we have to realize that this disconnect exists and use the tools available to us to try to close that gap.” Dig deeper: Breaking down the digital transformation of today’s customer journeys The right responses. This would be a good time, Muhl believes, to prioritize narratives that speak to thrift and savings and to focus on those brand values most relevant to your customers’ experience of inflationary pressures. As examples of responsive narratives, Mulh offered Tide’s “Cold Hard Savings” campaign and Everlane’s “Priced Like It’s 2019.” “This is just not the time to get into luxury positionings (with some exceptions) — luxury for its own sake rather than premium or quality,” Muhl said. “Brands need to really think about what their core values are and act from those where appropriate.” Why we care. The past three years should have taught us that our sentiments, our culture, does not necessary align precisely with real world events. For many of us, deeply felt emotional reactions to a global pandemic did not necessarily coincide with COVID-19’s real-time impact. As the pandemic receded, pandemic-induced behaviors persisted — as did anxiety and uncertainty. Similarly with inflation. Positive economic indicators and a slow but steady decline in inflation has not relieved foreboding about a recession. Inflation-triggered behaviors and attitudes will not automatically dissipate as inflation recedes to a tolerable level. Marketers need to be aware, sensitive and, as always, transparent in responding to consumer sentiment. [embedded content]

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  • Cord-Cutter Households Make Up 72% of U.S. Homes in 2025

    The annual “Couch Potato” report by Convergence Research highlights some trends that will continue to fuel growth in streaming media, with cord-cutter/cord-never homes in the U.S. growing to 72% of all households in 2025 and traditional pay TV video offerings seeing even larger sub losses in the next few years.  “Net-net traditional TV access [from a pay TV subscription] is well into becoming a niche product (even if we included vMVPDs in our TV numbers),” the report said.  “The Battle for the North American (US/Canada) Couch Potato: OTT and TV” report analyzed more than 80 OTT services (over 50 providers), led by Netflix, Disney/Hulu, WBD, Amazon. Based on that data, it concluded that 2022 U.S. OTT access revenue grew 26% to $49.6 billion and forecasts 21% growth in 2023. But that growth will significantly slow to 13% in 2025. The researchers also estimated that broadcast and cable TV Network online advertising, propelled by OTT (AVOD, FAST, SVOD), will rise to 23% of 2025 U.S. TV advertising revenue.Much of this is being fueled by an ongoing slump in the pay TV ecosystem. The report estimates that 2022 U.S. cable, satellite, telco TV access revenue declined 6% to $85.8 billion and will drop by even larger rates in the future, with a 9% decline in 2023 and 13% in 2025.Meanwhile the decline of 7.37 million U.S. TV subscribers in 2022 will grow to a 8.24 million TV pay TV sub loss in 2023, Convergence estimated. That means U.S. pay TV subs, which declined by 11% in 2022, will drop by even faster rates in the next few years, with a 14% decline in 2023 and 16% in 2025.This will produce a notable transformation in the way U.S. homes get their video entertainment. Convergence Research’s cord-cutter model estimates that at the end of 2022 there were almost 70 million US households (over 53% of households) who did not have a TV subscription with a cable, satellite, or telco TV access provider. By the end of 2025 cord cutters will comprise 72% of U.S. households. Looking further into the future, the Converence researchers are projecting a decline of 70% of TV subs between the end of 2022 and the end of 2028. During that period, annual TV access revenue from pay TV subs will decline by more than 60% of annual TV access revenue the number of cord cutter/cord never households will nearly double. Annual OTT revenue will grow by more than two and a half times between 2022 and 2028. Meanwhile TV access providers that are also broadband providers continue to benefit from the rise of OTT. Annual residential broadband revenue has more than doubled over the last decade, while TV access revenue is in its 7th year of decline, the report found. More information on the report, which also includes extensive data on Canada, is available here.  

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