While traditional TV advertising is declining, large sports events continue to be favoured by advertisers. For instance, the Super Bowl, which took place last Sunday, is estimated to have generated over US$650m of advertising revenue for broadcasters, with 30 second ad slots costing a whopping US$7m each. This price is equivalent to 2.8m TikTok in-feed ad clicks or 4.4m Walmart Connect clicks according to Digiday. Such blue-chip live events can still command skyscraper prices due to their vast audience reach and have a significant impact on product demand. 123m US households watched the Super Bowl last Sunday and a recent study shows that consumer demand for products advertised during the event can increase by 16%. Looking ahead, both the Paris Olympics and European Football are due to take place in 2024. These are expected to attract large audiences together with substantial advertising revenue around the events. NBCUniversal sold out its Olympic ad inventory months ago, and WARC expects US brands to spend an additional US$2bn on the Olympics. Many brands are adopting a multi-channel approach by combining the broad reach of live TV advertising with targeted digital campaigns before and after the event. Leveraging social media platforms such as TikTok and Instagram, brands could engage younger audiences and enhance the longevity and effectiveness of these expensive ads. In other news, Nectar360, which manages the loyalty program for Sainsbury’s and Argos, formed a partnership with The Trade Desk to share consumer data. Also in the UK, The Guardian and DMGT were both impacted by the challenging advertising market last year; JCDecaux UK will serve ads programmatically through 700 screens at Heathrow Airport, and The Independent is in talks to take control of BuzzFeed UK.
News of the week
Study shows that Super Bowl commercials drive demand
The Super Bowl 2024, which took place last Sunday, attracted a record viewership of 123m US households and about US$650m in advertising revenue, with each 30-second slot expected to cost advertisers c. US$7m. The high pricing reflects the reach and effectiveness of these ads. A recent study by Veylinx revealed a significant 16.4% increase in demand for products advertised during the event among its viewers. This study surveyed 1,604 U.S. consumers and found a particularly strong response among men, with a 24% increase in demand, while demand rose by 9% amongst women. The influence of pop culture was also evident, as the 'Taylor Swift effect' led to an 11% increase in demand among Generation Z viewers. Notably, 22% of these viewers were tuning into the Super Bowl for the first time. Even non-advertised brands like Lays, which are in the same product categories as Super Bowl advertisers, experienced demand increases, indicating a halo effect from the event’s advertising. The study also shows that viewers are primarily interested in the game itself, but entertainment and commercials are also an important draw for the audience. FT; PRnewswire
Advertising downturn hits UK publishers DMGT and The Guardian
For the year ending 30 Sep 2023, the Mail publisher DMGT reported a modest total revenue increase of 2%. This growth was driven by a robust performance in the Events sector, which surged by 63%, and a solid increase of 12% in Subscription revenues. However, this was offset by a 4% decline in Circulation and 9% fall in advertising revenues. The Events division of DMGT, which is headquartered in the UAE, operates across a variety of sectors. The Abu Dhabi-based energy show ADIPEC is one of their biggest events. Post-pandemic, this segment has seen a resurgence, marked by a rise in both exhibitor demand and visitor numbers. On the other hand, the company was hit by the advertising headwind, particularly in Print. Digital advertising decreased by 3%, while print advertising plummeted by 16%. Similarly, The Guardian also experienced a downturn in advertising revenue, which also fell by 16% over the 9 months to 31 December 2023, which is 20% lower than expectation. Pressgazette; Pressgazette
Nectar forms retail media partnership with The Trade Desk
Nectar360, which manages the Nectar loyalty program for brands like Sainsbury's and Argos, has formed a partnership with ad tech company The Trade Desk. This collaboration will enable the Trade Desk’s advertiser clients to leverage Nectar’s consumer data to target specific audiences across the open internet beyond the walled gardens of Google, Meta, Amazon. The partnership also allows advertisers to measure marketing effectiveness using the actual sales data, both in-store and online. The Trade Desk has previously secured similar data partnerships with other retailers, including Lidl’s parent company Schwarz Group and Ocado last year and Tesco in 2022. This move forms part of a broader trend as marketers seek first-party data solutions amid the deprecation of third-party cookies and the ever-changing privacy landscape. Campaign
JCDecaux UK launches programmatic OOH ads at Heathrow
JCDecaux UK has enabled programmatic digital out-of-home (pDOOH) advertising across all Heathrow terminals, leveraging over 700 digital screens through a supply-side platform VIOOH. This allows advertisers to target millions of passengers, using anonymised data, such as passenger profiles and dwelling time, to optimize campaigns in real time. This format also provides more flexibility to advertisers who can pause and restart campaigns as situations change. For Heathrow, the adoption of pDOOH opens up their premium ad inventory to a broader range of brands. JCDECAUX
The Independent in discussion to assume control of BuzzFeed UK
UK publisher, The Independent, is in talks to take over BuzzFeed and Huffington Post’s UK and Ireland operations. It is reported that The Independent will take control of both the editorial and commercial operations of BuzzFeed in the UK and a range of brands, including HuffPost, Tasty and Seasoned, under a licensing deal. Following the deal, BuzzFeed will still provide global content, tech and strategic support and its UK staff will move to The Independent’s London office. The partnership could add scale to The Independent’s operations and expand The Independent’s reach to a broader audience, particularly Gen Z and millennials. FT
Other news
- Disney launches a new AI-powered advertising tool. Reuters
- X will allow advertisers to choose creators to place ads. Tech Crunch
- Havas acquires B2B marketing agency Ledger Bennett. Campaign
