The continuing shift of viewers from traditional television to digital video will fuel this week's Interactive Advertising Bureau NewFront presentations, where new and old media companies gather in New York to try to convince advertisers they've got what people want to watch how they want to watch it.
The thing that the industry hasn't really fully grasped is just how quickly the migration is happening away from traditional TV, Hulu head of research Julie DeTraglia said. The cord-cutting has accelerated really, really quickly.
YouTube will take originals like Cobra Kai out from behind its paywall.
This year's NewFronts pack in a range of media companies, from Hulu, one of the earliest TV streamers, to online video powerhouse YouTube; social-media giant Twitter; publishers Cond Nast and The New York Times; and even retailers such as Walmart and Target, which have valuable data about shoppers. Consumption patterns have shifted faster than many predicted, Brian Albert, managing director, Google/YouTube Media Partnerships & Brandunit, said. People today rely less on traditional TV and more on content they're most passionate about.
YouTube conducted research with Omnicom Media Group which found that for viewers, it was three times more important to find content they were passionate about than whether or not the content featured celebrities, almost twice as important as it having high production values and more than twice as important than whether the programming was on a preferred network or channel, Albert said.
Digital video is maturing but can still use a showcase like the NewFronts, Publicis Media executive vice president for U.S. digital investment and partnerships Hayley Diamond said.
Video consumption is up even though live linear TV is down, Diamond noted. The growth is being driven by digital video, particularly on mobile devices and connected TV platforms.
Advertisers recognize the power of video, even when it's not on traditional platforms. Marketers absolutely understand the value of sight, sound and motion, Diamond said. So as consumption trends really shift toward digital video, it's important for all of us as marketers to pay attention to the opportunities out there.
The major media companies, including AT&T's WarnerMedia and Comcast's NBCUniversal, are planning new streaming services that will be ad-supported. And Pluto TV, the streaming TV service acquired last year by Viacom, will be a big part of that company's NewFront presentation.
The quality of digital video is also improving. Cond Nast, which is presenting video content at the NewFronts, is focused not only on views but on engagement. It has found that as it makes longer and longer videos, engagement has grown.
Brands want to align themselves with audiences that are engaged in the content that they're viewing, and that points to success we've had in the growth in watch time across all our content, and in particular where we've made content longer, Cond Nast Entertainment president Oren Katzeff said.
Content that is more like TV.
Here is what some of the NewFront presenters will be telling media buyers and advertisers this week.
YouTube
YouTube will be focusing much of its presentation on Google Preferred, the ad package that bundles video from the top five YouTube channels. The ranking is based on an algorithm that was initially based on passion and popularity, Albert said. A third P was added last year to provide protection from content that was not brand-friendly.
All videos are reviewed by human screeners before inclusion in Google Preferred, but brand safety remained an issue for YouTube because of material in its comment sections. YouTube responded by disabling comments on tens of millions of videos.
We know there's still work to do in this area, but overall we're pretty pleased with the feedback we continue to get from both customers and agency partners, Albert said.
YouTube is also working with third-parties such as IAS and DoubleVerify to confirm that ads are running in brand-safe environments.
This year, two more Ps are being added to the Google Preferred algorithm: platform, because TV screens are YouTube's fastest-growing surface; and production, to identify the types of content with high production values that get watched on big screens.
YouTube has renewed some of its original shows, such as the Emmy-nominated Karate Kid sequel Cobra Kai, and will be introducing a new slate as well. This year, original videos won't be behind a paywall, giving advertisers greater reach.
There are also a few changes for advertisers on YouTube TV, Google's virtual MVPD. Last year, the ads running in the cable breaks on YouTube TV were offered as part of Google Preferred packages. This year, advertisers will be able to buy those avails on a standalone basis, Albert said.
Viacom
For Viacom, long defined by its declining cable networks, the NewFronts are an opportunity to high-light the company's growing digital businesses.
Viacom is still in the process of telling the market our story about this transformation that's happened over the past couple of years; about the progress we've made in digital, the investments we've made and how we are a very different company, Kelly Day, president of Viacom Digital Studios, said.
A big part of Viacom's NewFront presentation will orbit around Pluto TV, the ad-supported streaming service acquired last year. Pluto contrasts with Netflix and the upcoming Disney+ service, which are ad free.
There's a lot of momentum around the SVOD space right now, Day said, noting Viacom was being contrarian by aggressively trying to grow an ad-supported platform. I think people are going to wake up in a couple of years and say, Wow, that was really smart.'
Vi
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The continuing shift of viewers from traditional television to digital video will fuel this week's Interactive Advertising Bureau NewFront presentations, where new and old media companies gather in New York to try to convince advertisers they've got what people want to watch how they want to watch it.
