 | | Media Buyer & Planner Today | | | | | | | | | #1 Facebook Advertising Up 50% | | The social network giant's first quarter financial results released on Wednesday show no signs of either advertisers or users abandoning the platform, despite all the controversy involving Cambridge Analytica and release of users' private data. Facebook in first quarter of 2018 sold $11.8 billion in advertising, up 50% from the same period in 2017, even as the user data problems were being uncovered and publicized. Meanwhile Facebook users reached 1.45 billion in first quarter, up 13% from first quarter 2017. Andy Taylor, associate director of research at data marketing firm Merkle, says while major advertisers "were very aware of the controversies swirling and wanted to know more about what other brands were doing . . . in terms of making moves, advertisers are more in a wait-and-see mode." And Taylor adds that most advertisers generally remain happy with Facebook's products. | | WHY THIS MATTERS: The release of users' private data impacts users more than advertisers and they seemingly are themselves most concerned about mass reach of their ads, which Facebook still offers. However Brian Wieser, head analyst for Pivotal Research, believes "it's too soon to tell" what the impact on Faceboook will be. "I think the impact of eroded trust will require a significant amount of time to play out." | | Three Takes: WSJ | Ad Age | MediaPost | | | | #2 Snapchat Adding Unskippable Video Ads | | The young-skewing social media platform plans to begin testing non-skippable video ads in its TV-like shows, Digiday reports. The new format will be called 'Commercials' that will run for six-seconds in selected Snapchat shows, but not in Snapchat's magazine-style Discover editions or in users' personal stories. The test is scheduled to start around May 15. The unskippable ads will run in shows that are three-to-five minutes in length and which are produced by established TV companies like NBCUniversal, Viacom and Turner. That is the type of video content that viewers are used to seeing ads in. | | WHY THIS MATTERS: Snapchat has a large 18-to-24 year old audience, and according to a 2017 study by customer acquisition firm Fluent some 80% of viewers in that age group tend to "always" or "often" skip ads on Snapchat. Forcing them to watch ads could turn them off. So advertisers will be watching the test closely. | | A Take: Digiday | | | | #3 Chipotle CEO Wants to Increase Brand's Visibility | | Brian Niccol, who joined the Mexican fast food chain as chief executive officer in March following a stint as head of Taco Bell, believes there needs to be a larger promotional push to rebuild the chain's reputation following a number of food safety issues dating back to 2015. He said on a first quarter financial call to analysts and the media that Chipotle "has been invisible" and needs both short-term and long-term marketing plans to help bring customers back into its locations. He says more money will be spent on marketing and promotion – in the amount of 3% of sales -- for the rest of 2018 to recapture customer loyalty. | | WHY THIS MATTERS: Niccol has a strong record of success at Yum Brands, first as chief marketing officer at Pizza Hut, and later at CEO of Taco Bell, a post he held for three years before joining Chipotle. Niccol brought with him to Chipotle his former Taco Bell colleague Chris Brandt as chief marketing officer and is expected to be an active CEO in working on the chain's marketing plans going forward. It was under Niccol that Taco Bell developed the chain's new slogan, "Live Mas." | | Two Takes: Ad Age | Business Insider | |
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| | 96.2 | | Dollars in billions that marketers will invest in marketing technology in 2018, according to estimates by Forrester Research. That number will grow by 27% to $122.4 billion by 2022. The totals include outlays on both technology and data/analytics. In 2018, investment in marketing technology totals 30% of all brand marketing spending. That percentage will grow at bit to 32% by 2022. | – Reported by MediaPost
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| | Fox Wins With Hearty 'Empire' | by Michael Malone
Fox won the Wednesday ratings race, as Empire led the net to a 1.4 rating in viewers 18-49, and a 6 share. That beat the 1.0/4 that CBS put up. Empire did a 1.6 and Star a 1.2, both shows down a tenth of a point from last week. On CBS, Survivor rated a flat 1.6 and SEAL Team dropped 20% to 0.8, then the third season premiere of Code Black, a medical drama with Marcia Gay Harden and Rob Lowe, scored a 0.7.
NBC was at 0.7/3. The Blacklist scored a flat 0.8 and was followed by repeats of Law & Order: SVU and Chicago P.D.
ABC did a 0.6/3. After a Goldbergs repeat, Alex, Inc. rated a 0.7 and was followed by a Modern Family repeat, before a second Alex, Inc. was good for a 0.6. Last week's Alex, Inc. rated a 0.6. Drama Designated Survivor slipped 17% to 0.5.
Univision rated a 0.5/2 and Telemundo a 0.4/2.
The CW did a 0.4/2, with Riverdale at 0.4 and The Originals at 0.4. Both shows were flat. | |
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| • LISA HENDERSON was named a senior buyer for local broadcast at Los Angeles-based media agency Milner Butcher Media Group (MBMG). She previously spent 21 years at media agency Initiative, where she rose to supervisor of local broadcast investment.
• BEN PRICE, who served as president of ad sales at Discovery Communications prior to its acquisition by Scripps Networks Interactive last month, will be leaving after the upfronts are completed. Price was passed over to head up the newly-combined Discovery-Scripps ad staffs when Jon Steinlauf, who was president of Scripps ad sales, was named chief U.S. ad sales officer for both. Price has been with Discovery for some 28 years and succeeded Joe Abruzzese as head of Discovery sales when he retired in 2016.
• DANIEL CHU was appointed chief creative officer for MRM//McCann West Coast. He was previously global chief creative officer at Possible. Prior to that, he was executive VP and executive creative director at Deutsch Los Angeles. • PETER GIERSCH, VP, channel partners at Dentsu Aegis Network's Isobar U.S., is expanding his role to VP global channel partners, MediaPost reports. In addition to his current U.S. responsibilities, Giersch will now be responsible for developing strategic partnerships in Europe, Latin America and Asia Pacific.
• KEVIN MARTIN was named interim head of policy at Facebook. Martin, former chairman of the Federal Communications Commission, has been with the social platform since 2015, when he joined a VP of mobile and global access policy. Prior to serving on the FCC from 2001 to 2009, Martin worked on the presidential campaign of George W. Bush, who then appointed him to the FCC.
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