I’ve been watching the news from the recent TV upfronts and waiting for the definitive article that summarizes what’s been said and done, and while I’m not convinced this is it, it does a good job of characterizing the basic trends at issue. The two big underlying trends are the continuing decline of live linear viewing of traditional TV and the massive growth of online advertising, which could be presumed to have put an enormous dent in TV ad spending but actually haven’t. However, the TV companies still see online advertising platforms as a big threat, and spent an unusual amount of time during the upfronts trashing Facebook and Google (though mostly not by name) while talking up their own massive reach. At the same time, though, these companies are increasingly mimicking the very same things that make Facebook and Google’s ad platforms attractive: detailed targeting of ads and tracking of what happens after viewers see them. At the same time, the TV networks seem somewhat lost on the content side, rebooting old shows and formats, latching onto new gimmicks like live musicals, and generally showing a lack of imagination in protecting and rejuvenating their brands. Meanwhile, the strongest audiences on traditional TV are live sports fans and older generations watching procedural franchises like CSI and NCIS. And of course the big online platforms are investing in lots of both traditional sports content and some new formats of their own. Therefore, though each side would like to paint itself as providing unique value, the two are increasing converging on a similar set of content and ad capabilities, while the audience continues to shift from traditional linear TV to a host of online and streaming alternatives, which will inevitably pull ad dollars that way too.
via LA Times
Snapchat Now Offers Online-to-Offline Tracking for Ads (Apr 12, 2017)
Your real-world purchases will soon determine what ads you see on Snapchat – Mashable (Jan 19, 2017)
Here’s further evidence that Snap is evolving Snapchat’s advertising targeting capabilities, something it badly needs to do to ramp up ad spending ahead of a potential IPO. But that also means going back on some of the commitments Evan Spiegel has made in the past to avoid “creepy” targeting. The reality is that Snapchat has captured a nice little share of ad spending purely on the basis of having a great target market for a certain generation at a general level, but if it wants to capture more targeted advertising, it needs to provide the tools that Facebook, Google, and others already provide. That means buying in data from Oracle (as in this deal, and further to a previous deal with Oracle for measuring ROI) or other data collection houses (as Facebook already does) in order both to target advertising and to capture information about subsequent purchases to prove an ROI. Though Snapchat’s target market is generally more open to ad-based business models and the attendant privacy implications, there’s a point at which even millennials will balk, and Snap has to be careful not to cross that line.