Lots of advertising-related news is still trickling out of Cannes Lions, but so too are studies from Nielsen and others on media consumption. We have a good graphic detailing the current virtual reality space, and reasons why it should thrive in media and entertainment. Most interesting read may be regarding Jeff Bezos’ grand experiment in transforming the modern newspaper. Worrisome coda to the New York magazine story: if it doesn’t work with Bezos’ Washington Post, and all it has going for it right now, can digital journalism at scale and serious intent work anywhere? -DB
Advertising, Cannes Lions
Advertising Isn’t Dead, But Market Is Changing
Cannes panel hosted by Wall Street Journal says there is less tolerance for bad ads
The WSJ panel, titled “Advertising is dead; Long live advertising,” also featured WPP PLC CEO Martin Sorrell, Vice Media LLC CEO Shane Smith and FacebookInc.’s vice president of Europe, the Middle East and Africa, Nicola Mendelsohn.It was moderated by The Wall Street Journal’s editor in chief, Gerard Baker.
One of the biggest topics at Cannes this week has been how to win consumers’ attention amid a swiftly changing technology landscape and backlash against a perceived overload of advertising.
LinkedIn is making its display ads more available to advertisers. The Microsoft-owned professional social networkannounced today that it has launched programmatic buying to let brands make real-time bids on display ads within their own demand-side platforms (DSPs) or third-party ad networks that are used to manage ads for other media properties.
Advertisers can purchase LinkedIn display ad inventory through an open marketplace or in a private one that will exclusively target specific segments of the social network’s 433 million members.
Advertising, Ad Blockers, Publishing
Shine’s Roi Carthy: The most hated man in publishing
If it were just talk, publishers might simply write off Shine as a pesky irritation. But they see the company’s approach itself as endangering the mobile ad business. Other ad blockers like Adblock Plus require consumers to proactively install on their desktop browsers. Shine blocks ads at the network level — wiping out all ads by default. Last year, Jamaica’s Digicel has said it would start using Shine to block ads across its mobile network. This year, Three became the first European mobile carrier to adopt the technology. Carthy said Shine has been tested with a network in the U.S. but wouldn’t say which one.
To date, ad blocking has mainly been a desktop concern. So by going after mobile, Shine also is taking aim at a segment of advertising that, while smaller compared to desktop, has been relatively safe.
For his part, Carthy calls the current IAB leadership “misguided” and points out that the trade group also profits from ad tech, a reference to the fact that those companies make up a portion of its membership.
Creators, Digital Media
Applications Are Now Open For Hank Green’s Internet Creators Guild
Membership to the ICG costs $60 per year and comes with a variety of perks. The most important benefit is access to a handful of tools and services that will help guild members deal with contracts, brands, rights management issues, hateful commenters, the press, and many other areas that can otherwise be tricky to navigate. The leaders of the organization will be a board of directors consisting of several top creators, including board president Anna Akana, Olan Rogers, Aureylian, and Wengie.
Guild members will also be able to take advantage of several special offers. They will receive discounts on analytics programs like TubeBuddy and VidIQ as well as reduced price tickets for VidCon’s creator track.
Creators, Digital Media, Live Streaming
Smosh To Stream First Live Sketch Comedy Show From YouTube Space L.A. This Summer
Featuring all-new material and special guests, the show will be streamed from the YouTube Space Los Angeles on August 26.
Smosh Live! is being sponsored by chewing gum brand 5 Gum — which is also hosting a sweepstakes that will offer fans a chance to attend the performance in person. Select 5 Gum foil wrappers will feature truth or dare challenges, which fans can then document on social media using the hashtags #5truthordare and #vipsweepstakes for the chance to win tickets.
Media Consumption, Mobile, Statistics
Adults Consume More Media, Smartphone Biggest Gain
Although analysts say U.S. media use is nearing media saturation, total media consumption for the first quarter of 2016 among U.S. adults rose around 10% versus the same period the year before.
Nielsen says adults added one hour of media on average per day to total 10 hours and 39 minutes. This contrasts with a nearly identical media use in the first quarter of 2015 versus 2014 — 9:39 versus 9:32.
The big gainer for the most recent period was smartphones, rising 37 minutes, up 60% versus the same period a year before. It now totals one hour and 39 minutes a day (1:39) — the third most-used media.
Publishing, Digital Media
The Good News at the Washington Post, Trump’s Least-Favorite Paper
In 2013, the Amazon founder bought the paper for $250 million from the Graham family. Since then, he’s invested millions more, turning the Post into a laboratory for inventing a sustainable future for newspapers.
Under Bezos, the paper has grown by 140 journalists and has won two Pulitzers. Its aggressive coverage of the 2016 presidential race frequently drives the news cycle and so infuriated Donald Trump that he has banned its reporters from his campaign. Most significantly, in business terms, since Bezos bought it, traffic to washingtonpost.com has more than doubled.
The paper is also experimenting technologically and collaborating with Silicon Valley to do so. This spring, the Post became the first publication to team with Google to build a prototype of a “progressive web app,” designed to cut mobile page-load times from four seconds to 80 milliseconds and to let readers surf the Post in their browsers even without a web connection. The company is conducting research on intelligent “news bots” with whom readers can chat to get the headlines in their car, on Siri, or (in a convenient bit of synergy) with Amazon’s Echo. Other publications are trying similar things, but the Post has a bigger budget than most to play with.
How To Lock Down So Ransomware Doesn’t Lock You Out
“Continually watch for outbound command-and-control traffic destined for known bad hosts,” says Chris Whidden, Solution Engineer at eSentire. He recommends also setting rules to prevent “unknown binaries from being downloaded from the Internet.”
Advertising, Traditional Media, Upfronts
CBS Expects to Finish Upfront With Volume Increase
The network expects to secure between 3% and 5% more volume than it won compared with its performance in 2015, according to a person familiar with the situation. In 2015, the network known for “The Big Bang Theory” and “NCIS” notched between $2.19 billion and $2.48 billion in pre-season ad commitments, according to Variety estimates. The new figures suggest CBS could have secured between $2.26 billion and $2.6 billion in ad commitments for its next programming cycle.
In discussions with advertisers, CBS pressed for significantly higher increases in the rates it charges to reach 1,000 viewers, a metric known as a CPM that is integral to these annual discussions between TV networks and Madison Avenue. During the “upfront,” U.S. TV networks try to sell the bulk of their ad inventory for the coming season. CBS pushed for CPM increases in the low double-digit percentage range, according to people familiar with the situation, compared with last year, when it sought between 3% and 5%.
Digital Distribution, Cord Cutting
Cable Cutting Is Easier Now That PlayStation Vue Is on Roku
many music rights holders say the YouTube system isn’t foolproof and requires them to conduct a laborious, manual search daily to track content and collect royalties. They worry that YouTube gains an unfair advantage with the lower rates it pays for music over other on-demand streaming services such as Spotify and Apple Music, which pay far more per play but together have relatively fewer paying subscribers at 68 million, according to the International Federation of the Phonographic Industry’s latest report.
The free tiers from SoundCloud and Spotify, by contrast, pay at rates up to six times the rate YouTube offers for user-uploaded videos, one rights holder said. Another said it gets an average of 35% more per play ($0.0011) from these free services than it does from YouTube videos. Paid subscription services pay even more per play, according to rights holders.
Net Neutrality, Research, Distribution, Content
Net Neutrality Rules Will Make Winners and Losers Out of Businesses
By Shane Greenstein, Martin Peitz and Tommaso M. Valletti
Today’s internet is infrastructure. And the rules that govern it are as difficult as any that have been written to date. In a recent research paper we sought to explore the tradeoffs at play in an important part of this modern debate that often tops the headlines: net neutrality.
All this matters to managers and investors since net neutrality rules could have significant consequences on the business models of ISPs, content providers, and other firms that depend on the transfer of data across the Internet. Managers and investors need to know about the open questions, and potential for change.
In our view, business owners and potential entrepreneurs should hesitate to take extremist positions on net neutrality regulation. We all need a well-functioning internet ecosystem. All participants have good reason to watch the debate and to express their needs regarding the price-quality trade-off since, in the end, you get what you pay for.
6 Reasons Why Virtual Reality Will Thrive in Film and Entertainment
Some people just don’t realize how impactful this technology will be and how obvious it is that the game is changing. Sure, not all VR entertainment and film content is glitch‐proof, and some people still feel weird about the idea of watching films on a headset. However, the glitches are clearing up every day and mobile VR is on its way to becoming the norm. As the popularity of these devices grows, so too will improved content and a better viewing experience.