Consumer Advertising Maximizing Impact

Transcription

1 Consumer Advertising Maximizing Impact Consumer publishing is transforming with the introduction of new advertising formats, ad types, and methods of buying and selling ad space. Lets take a deeper dive into the Consumer advertising landscape.

2 2016 CONSUMER ADVERTISING SNAPSHOT 266, ,821 Digital 83,876 Print Advertisers 10,925 Advertisers sponsored 11,042 Native Advertisers 5,519 Video Advertisers 33,141 Mobile Advertisers Source: Mediaradar January - December 2016

3 WHAT S THE DEAL PRINT IS DOWN, BUT CERTAINLY NOT OUT 120,000 Ad Pages YoY Q1 100,000 80, , ,698 60,000 This represents an 8% drop YoY, but there are still a considerable amount of ad pages being bought. 40,000 20,000 0 SUM OF PAGES Q SUM OF PAGES Q $5,000,000,000 Est Spend YoY Q1 $4,000,000,000 $4,183,709,557 $3,952,383,980 $3,000,000,000 $2,000,000,000 $1,000,000,000 The 6% drop in ad dollars is cushioned by higher placement rates $0 SUM OF ESTSPEND Q SUM OF ESTSPEND Q Source: Q1 2016; Q1 2017

4 PRINT PUBLISHING CATEGORIES ON THE RISE Percent Change in Pages Q1 YoY 120% 100% 80% 60% % CHANGE IN PAGES 101% 73% Niche and enthusiast categories are on the rise. Regional titles also continue to flourish. 40% 40% 20% 0% TWEEN AUTO DIET 32% 31% 30% LIFESTYLE SHELTER/HOME ART OUTDOORS 20% 19% LIVESTOCK 15% SEWING Percent Change in Est. Spend Q1 YoY 120% 100% 117% 109% % CHANGE IN EST SPEND 80% 60% Most categories represent substantial growth in small markets, but certain enthusiast groups, such as Art are showing strong improvement 40% 42% 20% 0% TWEEN AUTO ART 30% 25% WOODWORK LIVESTOCK 23% 22% SEWING SHELTER/HOME HOME & FITNESS 18% 17% RELIGIOUS/SPIRITUAL 12% BEER Source: Mediaradar Q1 2016; Q1 2017

5 PRINT PUBLISHING CATEGORIES ON THE RISE Percent Change in Pages 2016 vs % 40% 30% 45% % CHANGE IN PAGES 33% It s clear the shift towards advertising in niche markets began in 2016 with Bird Watching and Cheerleading among the most improved categories 20% 10% 25% 22% 19% 19% 18% 18% 15% 14% 0% BIRD WATCHING DIET REAL ESTATE LIFE SCIENCE NEWS CHEERLEADING LIVESTOCK PREGNANCY ARTHRITIS CANCER DIGITAL ADVERTISING IS AN UP AND DOWN STORY Percent Change by Ad Format Q1 YoY 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% # OF DIGITAL -8% -12% # OF DIRECT # OF PROGRAMMATIC 74% 0% 0% # OF NATIVE # OF VIDEO Advertising in 2017 is shaped by two factors: First, audience impact, which is why native, and mobile are up Second, concerns surrounding brand safety which is represented in the 12% drop in programmatic advertising 28% # OF 8% # MOBILE Source Chart 1: MediaRadar January 2015-December 2016 Source Chart 2: Q1 2016; Q1 2017

6 HIGH DEMAND FOR HIGH CPM Change in Advertisers by Placement Q1 YoY 60,000 55,901 Q Q ,000 51,601 40,000 45,008 39,415 30,000 20,000 23,406 23,424 10,000 0 # OF DIGITAL # OF DIRECT # OF PROGRAMMATIC Change in Advertisers by Format Q1 YoY 15,000 12,000 9,000 6, Q ,772 Q ,692 There is a clear shift towards higher CPM advertising formats. The greatest % increase occurred in native advertising. Let s take a look into how the format has grown over the past two years. 3, # OF NATIVE # OF VIDEO # OF # OF Source: MediaRadar Q1 2016; Q1 2017

7 NATIVE ON THE RISE Number of Advertisers Buying Native January 2015-March ,500 3,000 2,500 2,000 1,500 1, JAN - 15 MAR - 15 MAY - 15 JUL - 15 SEP - 15 NOV - 15 JAN MAR MAY - 16 JUL - 16 SEP - 16 NOV - 16 JAN - 17 MAR - 17 Demand for native has tripled since January Will this growth continue? Top 10 Product Categories in Native Advertising January-December ,500 3, NUMBER OF NATIVE 2,500 2,000 1,500 1, sponsored MEDIA & ENTERTAINMENT PROFESSIONAL SERVICE FINANCIAL & REAL ESTATE TECHNOLOGY WHOLESALE 652 HOME TRAVEL APPAREL & ACCESSORIS FOOD TOILETRIES & COSMETICS Source Chart 1: MediaRadar January March 2017 Source Chart 2: MediaRadar January - December 2016

8 2016 MOST PREVALENT IN HIGH CPM FORMATS Top Native Advertisers by Number of Placements ,220 SECCO SQUARED 68,042 ANSWERS CORPORATION 53,127 52,734 NEXTADVISOR POTENTIAL INVESTMENTS 49,049 JPMORGAN CHASE 43,231 LIVINGLY MEDIA 39,627 38,381 37,587 NSGV WIZZED MEDIA ROASTED.COM 34,952 NATIONAL AMUSEMENTS, INC. 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Top Consumer Video by Number of Placements COMCAST PROCTER & GAMBLE MICROSOFT 1397 TOYOTA VERIZON NATIONAL AMUSMENTS BERKSHIRE HATHAWAY TIME WARNER THE UNILEVER GROUP 897 CLOROX ,000 1,500 2,000 2,500 Source: MediaRadar January - December 2016

9 2016 MOST PREVALENT IN HIGH CPM FORMATS Top Mobile Advertisers by Number of Placements ,654 BROWN-FORMAN 8,757 TIME WARNER 7,105 7,029 ANHEUSER-BUSCH SIMPLISAFE 3,023 LIBERTY INTERACTIVE 2,384 2,610 2,420 TOYOTA TATA ESALON 2,062 2,061 CALAVO GROWERS RAKUTEN GROUP 0 2,000 4,000 6,000 8,000 10,000 Source: MediaRadar January - December 2016

10 2016 TOP BY PLACEMENT TYPE Top Direct Advertisers by Number of Placements ,394,598 RECKITT BENCKISER GROUP 1,900,310 BAYER AG 1,626,754 GLAXOSMITHKLINE 1,081,274 1,075,335 1,066,758 1,040,426 1,031,515 NOVARTIS AG SANOFI COMCAST PROCTER & GAMBLE JOHNSON & JOHNSON sponsored 993, ,381 WAL-MART TOYOTA 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Top Programmatic Advertisers by Number of Placements ,249,494 FORD 570,795 RECKITT BENCKISER GROUP 426,762 EXPONATION 325,794 TOYOTA 256, , , , ,051 VERIZON COMCAST PROCTER & GAMBLE NATIONAL AMUSMENTS NSGV 209,959 UNITED STATES OF AMERICA 0 300, , ,000 1,200,000 1,500,000 Source: MediaRadar January - December 2016

11 What Stood Out in 2016 High CPM Ad Placements are on the rise, especially mobile and native. Print is down overall, but there are bright spots. Niche and enthusiast categories are on the rise. Regional titles also continue to flourish. Massive companies such as L Oreal, Pfizer and P&G are continuing to spend big dollars in print. Consumer advertising is shifting, as the digital landscape evolves, so too do advertising strategies. As with print and digital, advertisers are searching for channels through which to reach select audiences with impactful marketing. The number of advertisers placing digital ads is down 8% YoY, coupled with a 12% drop in programmatic advertisers. Native is up 74%, , 28%, and Mobile 8%. Native is up 74%, 28%, and Mobile 8% What to Look for in 2017 Brand safety concerns and their effect on buying strategies. The proliferation of vertical video. The evolution of programmatic advertising. Is there a native bubble?