This week the media ratings powerhouse Nielsen Media Company, a virtual monopoly, decided to split into two new, publicly traded entities. One will be the Global Media business, which services media and advertising clients. The second will be the Global Connect business, which provides research to consumer goods companies. Nielsen asserts there is limited synergy between the two companies and the breakup will allow each to be more nimble. There’s another benefit: Nielsen has had its for-sale sign out for some time without a buyer. If the companies really do target different customers, the more focused value proposition will likely attract more suitors. One other interesting note: Local TV stations are moving to a new metric for negotiating rates. Whereas television costs have been bartered on the value of cost per Nielsen rating point (CPP), costs are now being bartered on cost per thousand impression (CPM). The latter metric is used in arbitrage of other media channels, like the internet. I believe the CPM currency, rather than the CPP currency, is just one more signal of the slow, paper-cut death of ratings as provided by Nielsen.
Lessons from ANA’s CMO Global Summit
This week the Association of National Advertisers released its summary of discussions and ideas shared by the world’s top Chief Marketing Officers. At October 1st’s Growth Summit, CMOs outlined three areas of critical action:
Science is important for the craft. Technology and data can open unique opportunities and insights. “The faster we innovate, the more we bring relevant solutions to the table.” Marcel Marcondes, US CMO at Anheuser-Busch.
That said, people-first is imperative. Brands are looking for meaningful connections with both customers and employees. Diversity, sustainability (environmental concerns), brand safe media environments are all driving decisions. “We must galvanize brands to be more human in the age of digital civilization,” – Simon Cook, Managing Director at Cannes Lions.
Accountability: CMOs are hungry for long-term key performance indicators, not just short-term metrics.
Friday Freebie: Mobile App Report
Click here to download this week’s mobile app report from eMarketer and its partner “branch.” Make sure you scroll down to Gatorade’s case study, which was a perfect way to connect with Gen Z athletes. Couple other key takeaways:
91% of smartphone use is in=app. So make sure your mobile advertising is seen in-app.
In 2018, the average iPhone smartphone user downloaded 47 apps.
Some of the most successful ad formats (used to promote the app) give users a preview of the app. Video is also impactful, a very emotive platform.
Marketers used to optimize ad campaigns against installs. Now they are more likely to optimize against installs that are activated. Interestingly, the organic (non ad-pushed) downloads are more likely to be used.
THINGS TO KNOW IN MEDIA – Nov. 8, 2019 November 14th, 2019MediaStruction