KINESSO Unveils Industry’s Most Cutting-Edge Solution to Optimize Campaign Performance in the Post-Cookie Era

March 8, 2024
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The Emerging Tech Assessment Enables IPG Mediabrands Agencies to Deliver Unparallelled Campaign Results for Brands Despite Impending Signal Loss

NEW YORK–(BUSINESS WIRE)–KINESSO, the IPG Mediabrands technology-driven performance marketing agency within Interpublic Group (NYSE: IPG) announced today the launch of their Emerging Tech Assessment (ETA), a next-gen solution for brands looking to optimize campaign performance in a post-cookie world. This proprietary offering is the most comprehensive offering of its kind, specifically designed to assess and mitigate potential performance risks for clients and marketers alike.

The quickly approaching phase-out of third-party cookies signifies a pivotal shift in the digital advertising landscape, with significant impact expected to attribution, cross-platform measurement, audience tactics, and optimization capabilities. The ETA is an exciting and necessary advancement, offering a unified approach to measure campaign success through the analysis of client’s digital media investments – categorizing spend into high, medium, and low risk – in the absence of cookies. The ETA also grants brands access to a qualitative review that examines the readiness of their technological infrastructure to adopt next-generation strategies and improves their preparedness for performance continuity.

KINESSO has built a global solution that outshines competitor offerings through pioneering features that provide empowering and actionable insights, including evaluating digital spend holistically across channels. Notably, ETA prioritizes actions based on a thorough risk evaluation, a critical step missing from most in-market solutions. It is backed by a systematic and automated data collection process that is integral to assessing campaigns in forensic detail to inform strategic decision-making. This custom approach not only de-risks client spend but simultaneously opens avenues for service revenue growth.

“Our clients rely on us to navigate the complexities of digital marketing, and the demise of third-party cookies presents a significant challenge,” said Chris Schimkat, Global Head of Analytics at KINESSO. “The Emerging Tech Assessment is our proactive solution to safeguard client investments, maintain campaign effectiveness, and leverage our strategic partnerships with industry giants like Google, Amazon Ads, and Meta.”

Key benefits of the Emerging Tech Assessment include:

  • Sophisticated Risk Analysis: Detailed and advanced risk examination of digital media spend across channels and partners to provide the most viable use of advertising technology to reach their target.
  • Tech Readiness Assessment: Qualitative evaluation of the current tech stack to ensure technological preparedness for next-gen solutions.
  • Customization: A personalized approach for each brand, with innovative recommendations, and the development of a strategic roadmap in collaboration with brand-side teams.

KINESSO’s commitment to innovation and client success is at the heart of the ETA, positioning the agency as a trusted advisor in the face of industry-wide transformation. The agency is currently working to scale this offering so that all IPG Mediabrands clients have the opportunity to benefit from the ETA.

 

IPG Forges First-to-Market Partnership with Adobe to Revolutionize Content Creation for Brands and Marketers

February 29, 2024
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IPG Engine is the First Integrated Marketing Platform Powered by Adobe GenStudio, Using AI and Data to Automate and Scale Creative Content

Adobe to Leverage Acxiom Data and Identity Products to Enrich its Customer Profiles and Audience Creation Capabilities

New York, NY, Feb. 29, 2024 (GLOBE NEWSWIRE) — Interpublic Group (NYSE: IPG) announced a global partnership with Adobe to power content creation and activation across the company’s operations. IPG is the first company to integrate Adobe GenStudio – which enables brands to speed up content ideation, creation, production and activation through generative AI – into its own marketing technology platform.

IPG’s engine streamlines and automates the end-to-end customer experience, helping brands find better ways to engage, convert and retain audiences through paid, owned and earned channels and on an individual level. Adobe GenStudio powers the content supply chain within the IPG engine, harnessing the combined capabilities of Adobe Workfront, Adobe Experience Manager, Adobe Express, Adobe Firefly, Adobe’s family of creative generative AI models, and Frame.io. Within the IPG engine, IPG deploys proprietary Acxiom data and identity products to create a more accurate picture of consumers and more authentic connections with brands. The IPG engine also leverages investments that marketers are already making in marketing technology and media to integrate customer intelligence across the content engagement landscape.

By uniting top-tier partner technology with proprietary data, IPG’s engine supercharges content, experiences, and commerce, at scale. The IPG engine is being deployed across the entire IPG portfolio, and offers combinations of content lifecycle support with creation, curation, assembly, personalization, and measurement, empowering every marketing discipline and client team to deliver exceptional results with efficiency for brands.

This partnership with Adobe underscores IPG’s commitment to innovation, demonstrating significant investments in data, technology, and AI. “Marketers today are looking to accelerate personalized connections with consumers, with an audience and commerce-led approach to every engagement. This new partnership with Adobe takes our capabilities to a new level. We’re deploying a unified operating system across our entire portfolio, fueled by data and audience insights, to craft content strategies that enhance human creativity with ethically sourced gen AI,” said Philippe Krakowsky, CEO of IPG.

At the heart of this collaboration is the integration of Adobe’s GenStudio into IPG’s marketing technology platform. “Brands are struggling to meet the growing demand for digital content, particularly now that consumers rightly expect experiences to be personalized to their individual tastes and preferences and delivered in real-time,” said Anil Chakravarthy, President, Digital Experience Business at Adobe. “By leveraging Adobe GenStudio, IPG is bringing together comprehensive, best-in-class creative and digital marketing capabilities, fueled by generative AI, with IPG Engine to deliver its clients true content velocity at the speed of social.”

Adobe and Acxiom are mutually focused on delivering improved customer value through their data and identity products—unlocking value for clients by anchoring personalization in comprehensive customer insights. To accelerate this effort, Acxiom’s data and identity products will be leveraged to enrich the underlying capabilities of Adobe Experience Platform and Adobe Real-Time Customer Data Platform—enhancing everything from AI-driven audience creation to identity resolution.

“By harnessing Acxiom’s rich data resources, we’re able to amplify Adobe’s AI tools, enriching customer data profiles and delivering unparalleled insights for enhanced personalization, improved engagement, and superior outcomes. Our operating system transforms the way brands and marketers approach customer experiences, whether it’s for information, entertainment, or shopping. We’re excited to bring this offering to our clients and drive actionable growth for their businesses,” shared Jayna Kothary, Chief Solutions Officer, IPG.

IPG Mediabrands Receives the ISO 27001:2013 Global Certification

January 22, 2024
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NEW YORK–(BUSINESS WIRE)–IPG Mediabrands, the media holding company within Interpublic Group (NYSE: IPG) announced today it’s been awarded a Global ISO 27001:2013 certification for its quality information security management system (ISMS).

The ISO/IEC 27001 is widely recognized as the international standard for information security through the building and maintenance of an information security management system. Requirements include optimal security controls that systematically examine for security risks, such as risk avoidance or risk transfers, vulnerabilities within core system capabilities, monitoring for ongoing impact, and taking measurable account of potential threats. The ISO 27001 is the only auditable standard that is inclusive of overall management of information security versus the singular focus of implementing technical controls within IT management systems.

IPG Mediabrands certification was issued by Schellman after undergoing an assessment and audit of the information systems and processes to ensure global compliance. With this recognition of premium security practices, IPG Mediabrands Information Technology affirms its investment in privacy protection and the ability to keep client data safe by taking proactive measures.

“At IPG Mediabrands, we are committed to building trust and instilling confidence among our leaders and clients that our safety and security practices far exceed industry standards,” said Frank Ribitch, Global Chief Information Officer, IPG Mediabrands. “At a time of rapid change and increasingly sophisticated external threats, the ISO 27001 certification is an important step in the right direction to ensure our Information Technology capabilities and compliance practices remain ahead of the curve.”

“We are very proud to have certified all our locations globally and it is a testament to the hard work and dedication of our teams who manage our data with assurance across all levels. Our commitment to upholding the ISO 27001 certification is not a one and done process, but rather, we strive to renew and uphold our certification each year,” said Myra Santos, SVP Cybersecurity Compliance Risk Officer at IPG Mediabrands.

 

 

IPG Mediabrands Launches Industry’s Most Powerful Delivery Engine Under KINESSO Banner

September 21, 2023
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Kinesso, Matterkind and Reprise Come Together to Form New Unified Entity

NEW YORK–(BUSINESS WIRE)–IPG Mediabrands, the media holding company within Interpublic Group (NYSE: IPG) announced today the launch of KINESSO, a tech-driven performance unit delivering real intelligence that moves brands forward. The new entity is poised for accelerated growth through the integration of three powerhouse brands: Kinesso, Reprise, and Matterkind, now living under the KINESSO banner within IPG Mediabrands.

By the year 2025, the media landscape is set for a profound and irreversible transformation. Three significant trends will shape this evolution. First, 75% of all media will undergo a radical shift towards automation and AI-driven optimization, revolutionizing the way content is created and delivered (Source: Digitalization Concepts – Case Studies: AI-Artificial Intelligence”). Second, an overwhelming 90% of online content will originate from AI-generated sources, redefining the boundaries of creativity and information dissemination. Lastly, the retail media sector will experience a surge, with a remarkable $121.9 billion of investment, making it the fourth-largest media channel globally (Source: BestMediaInfo Bureau, December 2022). Together, these developments mark a significant shift in the industry toward automation, AI-driven content, and substantial investments in retail media.

By bringing together the collective power of Matterkind, Reprise, and Kinesso under the KINESSO banner, the new entity is uniquely positioned to unify the data derived from a brand’s full marketing system into one renowned, intelligent, growth-driving capability. KINESSO performance solutions, end-to-end media activation and optimization, global capability centers and data/tech prowess opens the door for an even more holistic and integrated approach to servicing and ensuring the success of IPG Mediabrands clients.

“KINESSO by definition means movement and change, and that is what we’re bringing to the forefront of this new business. We’re here to help our clients win and make sure those wins stand out above the rest. KINESSO will make up the most efficient and powerful operating system in the market fueled by an infrastructure that allows all our agencies to function with agility and consistency in a global capacity,” said Jarrod Martin, Global CEO of KINESSO.

KINESSO will have extensive offerings spanning performance marketing and data and technology and is poised for digital excellence via advanced capabilities including progressive search engines, digital experience and platform intelligence to media activation, AI, and audience development. With a deep understanding of consumer behavior, KINESSO offers an end-to-end engine of planning and optimization while also delivering on data-driven strategy for social platforms, actionable growth in e-commerce, and creating curated marketplaces specific to each client’s function and needs.

“This is an important time in our history to build upon the collective success of Matterkind, Reprise, and Kinesso. Positioned at the heart of IPG Mediabrands, KINESSO will expand horizons for our clients by prioritizing excellence in the future of media, superior value delivery, and a commitment to innovation breaking down industry barriers. We’re excited to bring this offering to our clients and drive actionable growth for their businesses,” shared Eileen Kiernan, Global CEO of IPG Mediabrands.

For more information about KINESSO, please visit www.kinesso.com

IPG Mediabrands Launches Unified Retail Media Solution

July 18, 2023
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Dedicated Business Unit Unveils World’s Most Expansive Retail Media Network Platform to Address Brand Needs for Advertising in Retail Media

July 18, 2023, New York, NY: IPG Mediabrands, the media holding company within the Interpublic Group of Companies (NYSE: IPG) today announced the launch of its Unified Retail Media Solution, a dedicated business unit that will enable brands to intelligently manage their investment performance seamlessly across all Retail Media Networks, one of the fastest growing advertising channels.

According to the Association of National Advertisers1 2023 study 82% of CMOs find a lack of standardization across [Retail Media] platforms “a challenge” or “a big challenge.”  The second most significant challenge, reported by 68% of respondents, was the walled garden approach used by Retailers.

To help brands navigate this popular retail advertising medium, IPG Mediabrands Unified Retail Media Solution will bring openness and trust to the typically closed world of Retail Media at a time when brand spend in the space is growing rapidly. It is powered by a unique tech platform that operates against four key principles: Unified Audience, Unified Measurement, Unified Optimization and Unified Intelligence, giving brands a clear and holistic view of their performance.  Specifically, the platform can decipher which Retailers are performing best and will automate cross-retailer activation and optimization, moving media spend between retailers to maximize sales and profitability. Brands will have the option to augment their existing audience data via Acxiom data sets and the platform will automatically aggregate this cross-network data using IPG’s proprietary AI-powered tools to enable planning, insights, activation, and optimization.

Led by Glen Conybeare, Executive Lead, and with 500+ multi-disciplinary team members in support, the Unified Retail Media Solution has been beta tested by IPG Mediabrands clients in the CPG, Gaming and OTC sectors, and already has hundreds of bespoke audiences built out with a roadmap to hit over 10,000 by year-end.

“Brands activating in Retail Media face the challenge of navigating through multiple closed garden networks, each with their own data approach, metrics and ROI methods. This complexity is amplified for brands that also sell their products through these retailers. Therefore, it is crucial for brands seeking to maximize their investment to leverage data and insight across networks with an ability to make intelligent decisions in real time about what’s working and not,” said Eileen Kiernan, Global CEO, IPG Mediabrands.

“With this solution from IPG Mediabrands, clients can make optimal decisions both within and across Retail Media Networks based on facts, not hunches. It’s another step forward in IPG’s Total Commerce strategy, along with IPG’s Creative Commerce Labs, helping to ensure brands grow share and do so profitably,” added Jeriad Zoghby, Chief Commerce Strategy Officer at IPG.

“Retail Media Networks offer a huge opportunity for marketers. However, each network operates as a closed-loop system which makes it really difficult to drive ROI effectively. With dozens of retail channels as part of many clients’ investment strategies, it has been difficult to compare their relative performance. With our Unified Retail Media Platform, we have standardized a key part of the process,” said Conybeare.

According to MAGNA’s 2023 report on the matter, Retail Media revenues will increase to $121bn in 2023 (+13%YoY) representing 20% of total digital advertising revenues across search, video and display.

For more information on the Unified Retail Media Solution, visit Unified Retail Media Solution – IPG Mediabrands Commerce

IPG Mediabrands Wins GEICO’s $1.4B Media Review

February 23, 2023
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It marks an end to the insurance brand’s nearly three-decade relationship with Horizon Media

IPG’s Mediabrands won Geico’s business following a competitive review that began last fall and concluded this week.

The account is worth more than a billion dollars. By COMvergence’s estimates, it spent $1.38 billion last year on measured media. Of that, Geico funneled $827 million into offline spend, including TV. It spent $553 million on digital investments.

The decision follows a shakeup within the brand’s marketing department. Last April, the former Estee Lauder marketing leader Damon Burrell became Geico’s new CMO. By October, it reduced its marketing department’s headcount. Insurers are struggling, according to Insider Intelligence’s eMarketer data, which notes layoffs in the insurance industry ballooned between July and August last year from 12,000 to 23,000.

Appointing IPG Mediabrands will modernize Geico’s media approach, according to a brand statement.

“We are excited to work alongside IPG Mediabrands to transform how Geico designs integrated marketing strategies connected to customer needs and measured by business outcomes. The partnership marks a milestone in Geico’s marketing evolution, and we look forward to reaching many more milestones with our new agency,” Burrell said in a statement.

The end of a three-decade relationship

Ending its relationship with Horizon Media is another significant change for the brand. It has maintained a 29-year relationship with the independent media agency, which defended the business.

“I have been personally blessed and professionally honored to have built a 29-year relationship with Geico—quite rare for this industry—and for Horizon to have made the tremendous business impact that we’ve made in that time, driving astronomical growth that took them from No. 8 to No. 2 in the auto insurance industry,” Bill Koenigsberg, CEO and founder, Horizon Media said in a statement provided to Adweek.

What this illustrates is media is increasingly a holding company proposition.

Jay Pattisall, Forrester principal analyst

Dentsu Media also participated in the review, sources familiar with the matter told Adweek, although the holding company declined to comment for this story. Geico declined to reveal which other agencies it considered. However, other holding companies and independent agencies were part of the lineup, a source confirmed.

“By incorporating the full breadth of the contemporary, data-infused expertise at IPG Mediabrands, we can support the GEICO team as they go to market with an audience-led approach that will increase the value of each customer interaction and also drive growth,” said IPG’s CEO Philippe Krakowsky.

The “audience-led” approach Krakowsky referenced will hinge on IPG’s Acxiom subsidiary. Of the three agencies Adweek learned were vying for the business, Horizon is the only one that does not own a data company. Dentsu, for its part, leverages its Merkle acquisition.

Group-level wins at IPG are not usual

Pitching at the group level is highly unusual for IPG Mediabrands, although it has been done before. Last year, the group crafted a bespoke team to service the Dyson account. Mediabrands will also craft a bespoke team for Geico, a source told Adweek.

Mediabrands competitors, including Publicis Media and Dentsu Media, often pitch at the group level. But Mediabrands commonly handles business at the individual brand level. It veers away from the single P&L model other holding companies tend to present as a benefit to clients. Integrated models allow holding companies to pull from across their agency subsidiaries to staff a single client account.

At their best, group-level pitches allow holding companies to be more efficient and leverage more of their talent to address a broader range of challenges. In some circumstances, however, models like this can create account staffing issues. To avoid staffing issues, many large clients ask for custom-designed teams composed of fully-dedicated staff.

According to Forrester principal analyst Jay Pattisall, Mediabrands’ integrated offering might include Reprise Digital’s precision media skills, the tech and data capabilities inside Acxiom and Kinesso. It may also include Mediahub’s creative media approach.

Mediahub announced just last week it’s officially joined IPG Mediabrands, having previously operated separately from the group. It is unclear how much the Geico review influenced that business change, although the brand stands to benefit from it.

“What this illustrates is media is increasingly a holding company proposition because of the level of integration required to coordinate all the required components to execute audience-first media management today,” Pattisall said.

With Mediabrands’ appointment, the insurance brand is consolidating more of its marketing budget with IPG. Its creative agency of record is the IPG subsidiary, The Martin Agency.

“We’re honored to extend our long-standing relationship as their creative partner and excited that we’ll now have the opportunity to bring to bear a range of media and precision capabilities on their behalf,” Krakowsky added.

Read more in Adweek.

Ad Firms Predict Slower Advertising Growth for 2023

December 5, 2022
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Consumer-packaged goods and finance marketers could see flat ad spending in 2023, while entertainment, travel and betting will enjoy tailwinds, according to a Magna forecast

Major advertising forecasting firms say global advertising growth in 2023 will be slower than previously predicted.

Media owners’ ad revenue will grow 4.8% to $833 billion next year, according to a new forecast from Magna, a media investment firm that is part of Interpublic Group of Cos.’ Mediabrands. Magna predicted in June that 2023 would produce a 6.3% increase.

Magna said 2022 growth will total 6.6%, partly reflecting a boost from spending around the midterm elections in the U.S. That is down from the 9.2% it predicted in June because nonpolitical spending was weaker than expected in the second half of the year.

“The economy has slowed down more than expected six months ago, which was partly mitigated in the U.S. because political spending was even stronger than expected six months ago,” said Vincent Létang, executive vice president of global market research at Magna and author of the report. “Of course, it’s not going to help when it comes to 2023. We’ve reduced the growth expectation for almost every media category for next year, but we still expect that the market will stabilize and not fall.”

Marketing sectors such as consumer-packaged goods and finance could see flat ad spending in 2023, while entertainment, travel and betting will continue to be driven by regulatory relaxation and pandemic recovery, Magna said. Automotive advertising could grow again after a period of moderate decline as the industry gradually emerges from the supply-chain crisis, the firm added.

A separate forecast from media and data giant GroupM, part of WPP PLC, predicted that global advertising revenue will grow 5.9% next year, a downgrade from its 6.4% estimate in June.

GroupM said global advertising revenue this year will grow 6.5%, excluding political advertising, down from its June forecast of 8.4%. Growth in China will be less than expected because of that country’s pandemic-related lockdowns, the firm said.

“I think we’re feeling some of that deceleration into the end of this year, and maybe it’s feeling a little bit more gloomy, even though we’re still seeing growth, especially among digital players,” said Kate Scott-Dawkins, global director of business intelligence at GroupM.

Certain trends appear promising for the ad industry, GroupM said.

Although executives at some of the largest global advertisers are concerned about inflation and cost of living, their revenue has remained relatively resilient as they passed on added costs to consumers and sales held up. And though fears have swirled around a digital ad slump, GroupM said it expects advertising on digital platforms and digital extensions of traditional media to each grow by 9% globally in 2022.

“One could make the argument that we are in a global post-Covid 19 ‘war’ period marked by the after-effects of government fiscal policy and major supply chain disruptions, and not in a dot-com bubble type recession,” GroupM’s report said. “That’s why we are not seeing the universal downturn—not yet anyway—of 2008 or even 2001, despite most companies reminding us that they are proceeding with an abundance of caution.”

Read more at The Wall Street Journal

IPG Mediabrands to Offer Clients Net-Zero Media Buying

November 15, 2022
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Partnering with emissions data standard company Scope3, Mediabrands agencies will help clients measure, compensate and reduce emissions from the digital advertising supply chain.

IPG Mediabrands has formed a new partnership aimed at measuring and reducing the carbon footprint of digital advertising. Working with Scope3, a company that specialises in media supply chain emissions, Mediabrands’ clients will be offered the ability to measure, offset and reduce their CO2 levels from digital ad activity.  Mediabrands will now be able to use Scope3’s emissions data for every digital ad impression to provide measurement and reporting services while still also using its own existing media consumption carbon calculator. It will also offer Scope3’s Green Media Products, which factor factor the cost of carbon into the price of advertising to give brands carbon-neutral alternatives for campaign activations. In a release, the media agency noted that brands are increasingly leaning on agency partners to cut emissions resulting from digital advertising. Mediabrands says it plans to engage the digital supply chain to promote lower emission ad delivery paths and will ultimately “shift media investment to partners that demonstrate a commitment to continuous emissions reductions.” “Our partnership with Scope3 is one of many commitments Mediabrands is making to take intentional steps in support of climate action as part of our broader Media for Good efforts. For action to be taken, access to accurate data and reporting is an essential first step,” says Mediabrands global CEO Eileen Kiernan. “Scope3 provides critical insights and information that enable us to make smarter, cleaner investment choices.”

Read more in Campaign

IPG Mediabrands Expands Signature Media Responsibility Index, Finds Global Social Platforms Making Most Progress, and Benchmarks Broadcast & Cable, CTV/OTT, Digital Video and Display

October 13, 2022
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Pre-eminent industry barometer transforms into an actionable tool for brands to evaluate responsibility of multiple media types across 150+ global partners  

NEW YORK (October 13, 2022)—IPG Mediabrands and its intelligence arm MAGNA, today unveiled the 4th issue of its signature Media Responsibility Index (MRI 4.0), an initiative that strives to raise industry awareness and standards around harm reduction for brands and consumers in advertising. MRI 4.0 has transformed from an analytical study of 10 social platforms into an actionable toolset, now assessing 150+ partners from a variety of formats across 15 countries and establishing four new ESG-aligned priorities for partner accountability.

The index allows for teams and clients to incorporate brand and consumer safety priorities into their investment decision-making for a variety of media types, from the largest global social platforms to local broadcast media outlets.

The original MRI, the first-of-its kind, was launched in August 2020, in response to concerns about social media platforms not taking steps to acknowledge, measure and reduce their contribution to online and real-world harms. In effect supersized, MRI 4.0’s evaluations now encompass 80% of Mediabrands’ global investments and allow for clients to identify and invest in the media outlets that support their values without compromising ROI.

MRI 4.0 assessed each outlet across four priorities of partner accountability—Safety, Inclusivity, Sustainability and Data Ethics—in alignment with industry-adopted ESG (Environmental, Social and Governance) frameworks so businesses can easily extend how they are measuring their impact in these spaces to include media. Previous versions of the MRI had ranked the platforms upon Mediabrands’ 10 Media Responsibility Principles, which are now consolidated within the four priorities.

More than 150 major partners were surveyed, expanding into the realms of Broadcast & Cable, Connected TV, Online Video, and Display. Across Broadcast & Cable, the traditional-first networks also span several subsidiary companies across Connected TV and Online Video properties; The findings illuminated that strict, longstanding federal regulations within Broadcast & Cable have had a trickle-down effect to their digital properties, in effect enhancing safety standards when compared to digital-first counterparts surveyed.

“We developed our first media responsibility index in 2020 to determine exact protocols of the major platforms, as people started questioning the impact of social media in their lives, from the prevalence of misinformation to hate speech and data-collection practices,” said Elijah Harris, EVP Global Digital Partnerships & Media Responsibility at MAGNA.“We have always believed in the need to bring the lens of media responsibility to a broader set of media types. Consumers digest content and opinions from an ever-increasing list of mediums. It only made sense that this rigor we’ve developed for social platforms would be translated for a more diversified mix of media partners. With each iteration, the MRI is becoming more robust and establishing itself as a mainstay in driving industry accountability and powering responsible advertising investment.”

Key highlights include:

  • Social media platforms showed continued improvement across the four priorities (averaging +3-point in overall performance). Partners attained a ~10% increase in Inclusivity, driven by increased focus on internal accountability and creator equity.
  • Safety is a standout priority for broadcast & cable, based in part on federal industry regulations forcing uniformity and 3rd party enforcement in safety standards – including children’s safety rules and advertising approvals.
  • Tech proficient digital-first CTV partners are driving higher Data Ethics performance than their traditional-first counterparts, in part due to their origins and operating in a more tech-oriented space, versus a TV-first space
  • In a mixed marketplace for Sustainability practices, online video platforms showed strength in their ad-business emissions measurement + setting net-zero goals.

Advertising environments remain under the microscope as brands pursue ESG commitments and consumers become more critical of where brands choose to advertise. A Mediabrands survey found that one-quarter of clients adjusted their media mix based on MRI findings, and 90% said they were interested in finding new methods to assess media value beyond price efficiency alone.

“The MRI is an important underpinning of our Media for Good positioning, putting responsibility at the heart of every media decision, as concern over the interplay and societal impact of advertising, media and misinformation increases,” said Eileen Kiernan, Global CEO of Mediabrands. “Our clients are increasingly pursuing ESG criteria within their own businesses and we are providing a resource to support these goals along with advocating for stronger, safer standards in media.”

Examples include Snap achieving a 6-point lift YoY, outperforming all platforms in its efforts to protect people and combat misinformation and disinformation due to their robust publisher diligence; TikTok continuing to raise the bar, gaining an 8-point lift on brand safety practices and 24-point lift in children’s wellbeing; and YouTube setting the benchmark for online video across all categories, most notably in Inclusivity for delivering 60% diversity in behind the camera casting for owned and diverse content, and Safety for their policy and enforcement tools to manage UGC.

“Looking back at the strides made by social-media platforms since 2020 not only validated the need for a media responsibility monitor, it motivated us to expand the lens of media responsibility to more media types and markets,” said Harris. “We are proud to be a part of the greater journey to make social media safer for all and excited about the opportunity to improve our industry for all.”

“The 4A’s has been proud to endorse the Media Responsibility Index as an important tool for advertisers to assess how the big social-media players are handling safety issues on their platforms,” said Marla Kaplowitz, President and CEO, 4A’s. “Expanding to include other media types and global markets is a welcome next step.”

To compile MRI 4.0, MAGNA surveyed 150+ global media partners on a dynamic assessment, customized by media type, covering the most pressing safety issues of the day facing consumers and brands and specific accomplishments made by these outlets to help alleviate them. Scores were analyzed based on the varying weights of each question, as well as nuance within the individual platform, against the four brand-safety priorities.

Read more here.

 

MAGNA Advertising Forecasts (U.S. Fall Update)

September 29, 2022
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Innovation Keeps the Ad Marketing Moving

KEY FINDINGS

  • In the wake of a historically strong 2021, U.S. media owner’s advertising revenues grew by +11% to $151 billion in the first half of 2022, based on financial reports.
  • Media channel performance varied greatly in the first half with strong revenue growth in out-of-home (+30%), and robust growth in keyword formats (search, retail media) (+19%), contrasted against stagnation in social media (+3%).
  • The weaker economic environment will cause several industry verticals to reduce ad spend in the second half, but stronger-than-expected political spending will mitigate the impact on revenues of media owners.
  • Full-year media owner revenues will thus cross the $300bn market for the first time, to reach $323bn. That’s +9.8% above 2021 levels (+8.1% if we only consider non-cyclical ad spend and exclude political dollars).
  • For 2023, the continued economic slowdown and the lack of major cyclical events led MAGNA to reduce its growth forecast to +4.8% from +5.8% in the previous report.
  • MAGNA expects Entertainment (Movies, Streaming), Travel and Betting to grow advertising spending next year, possibly joined by Automotive as the car market finally stabilizes.
  • Keyword search formats (+13%) and OOH (+8%) will continue to outperform, while long-form AVOD spending will be driven by the addition of ad-supported tiers from Disney+ and Netflix (+33%).

Vincent Létang, EVP Global Market Intelligence at MAGNA and author of the report, commented: “Following a strong first half, non-cyclical advertising spending is slowing down as several industries are facing an uncertain economic environment. There are several growth factors that will help stabilize media owner ad revenues in coming months, however. In the short-term (2H22) cyclical factors: Billions of ad dollars will be spent by political campaigns in TV, direct mail, and digital media. In the mid-term (2023) there will be multiple organic growth factors, driven by marketing technology innovation: Retail media networks bringing below-the-line marketing budgets into digital media, programmatic spending in digital audio and digital OOH formats, and the expansion of AVOD and CTV advertising with new ad-supported tiers from Disney+ and Netflix.”

FIRST HALF RECAP: A STRONG START FOR AD SPEND
Based on the analysis of media owner’s financial reports, MAGNA estimates that total net advertising sales grew by +11% year-over-year in the first half of 2022 to reach $151 billion. Ad sales grew by +14% year-over-year in the first quarter, and by +7% in the second quarter (+4% above first quarter).

OOH was the fastest growing ad format (+30% year-over-year). OOH media is driven by the recovery of consumer mobility since January and return of national and local advertisers following the deep COVID decline in 2020. MAGNA just published a detailed report on global OOH trends, looking at the growth of OOH ad sales in the U.S. and internationally. Cinema advertising grew by +430% in the first half, as both blockbusters and moviegoers finally returned en masse into theaters.

Other growth formats in 1H22 included Search (+19%), Digital Audio (audio streaming and podcasting, +19%), AVOD/CTV (Hulu, Peacock, etc. +18%) and short-form digital video formats (YouTube, Twitch, etc. +14%).

On the other hand, social media ad sales continued to slow down dramatically, from +38% in 2021 to +7.5% in the first quarter and -1% in the second quarter, to end the first half up by just +3% to $30 billion. Social media apps continue to suffer from the reduced access to user data in the iOS environment, which impacts the attractiveness and pricing power of social ad formats, while total social media usage has reached maturity.

Meanwhile, traditional linear ad sales slowed down in the first half. National television sales increased +2% to $20bn, partly thanks to incremental ad sales around Beijing Winter Olympics. Local TV sales rose +10% to $9bn in the first half, thanks to political spending, or +2% on an underlying basis.

SECOND HALF AND FULL YEAR 2022: CYCLICAL DOLLARS HELP MITIGATE THE IMPACT OF ECONOMIC SLOWDOWN
Economic uncertainty and rising inflation are affecting several industries and driving brands and local businesses to moderate their marketing expenses in the second half. CPG verticals (food, drinks, personal care, and household goods) are especially at risk as they are forced to increase product prices and face the possibility of consumers trading down in favor of cheaper brands. Restaurants and retail face a similar business challenge while some industries, like mortgage lenders, see their businesses suffer from the rise of interest rates.

As a result, MAGNA anticipates non-cyclical ad spend will slow down to +6.6% in the second half. This will be offset by the record influx of cyclical ad spend around the mid-term elections and the soccer World Cup in November. Based on unprecedently large fund-raising year-to-date, MAGNA expects political advertising spending to grow by +63% over the previous mid-term cycle (2018) and generate $7.3 billion in incremental advertising revenue for media owners, with 70% of it concentrated in the second half. Local television will attract almost two-thirds of that total, as political ad sales will account for 25% of total local TV ad revenue this year (and more for stations in “battleground” markets). Digital media formats will receive $1.3 billion from political campaigns, with sales up between +150% and +200% for search, digital video, and social formats.

With a strong first half and political advertising mitigating the slowdown in the second half, MAGNA expects full-year, all-media advertising revenues to surpass the $300bn mark for the first time and reach $323bn this year. That represents an increase of $29 billion over 2021 (+9.8%), with non-cyclical underlying growth at +8.1%.

On a full-year basis, cross-platform video will grow by +8% (linear television -3%, local TV +22%, AVOD +22%). Cross-platform audio (radio, audio streaming) will increase by +7%, OOH by +22% and cinema by +138%. Among “direct” media formats, search will grow by +17%, direct mail by +8% and social media by +4%.

2023: ORGANIC FACTORS KEEP THE AD MARKET GROWING
The lack of major cyclical events and the weakness of the economic outlook has led MAGNA to reduce its advertising forecast for 2023.

In terms of industry spending, MAGNA anticipates below-average growth for CPG verticals, Finance and Retail. On the other hand, Entertainment ad spend will grow from the continued recovery of moviegoing and re-ignited competition in the AVOD/SVOD industry. Travel will continue to recover, and Online Betting will develop further as more large states (Ohio for sure, possibly Texas, California and Florida) may legalize the activity at some point during the year. Finally, there’s hope that the Automotive vertical may start to recover in 2023 after two years of decline in car sales and advertising activity. Car sales have stabilized since August, mostly due to a comparison effect (they had started to fall a year before), and, as soon as the supply-chain conditions and production capacities improve, manufacturers and car dealers will compete again to meet the pent-up demand.

Nevertheless, MAGNA still expects total ad revenue to grow in 2023 (+4.8% vs. +5.8% in our prior forecast) thanks to organic drivers, many of them derived from innovation in media offering and media technology. Among these:

The rise of retail media networks. Retail media advertising will increase from $31 billion this year to $42 billion in 2023. The bulk of it comes from Amazon’s product search but all other large retailers are now developing advertising sales through keyword search or display ads on their apps and websites. Retail media is mostly fueled by consumer brands reallocating below-the-line, trade-marketing budgets from in-store towards digital retail networks, as a greater percentage of retail sales comes from e-commerce. Furthermore, retail-owned media networks are mostly immune from the privacy-based limitations on data usage and targeting, that display or social media owner’s face, because they can leverage their own first-party data.

The expansion of AVOD. The transition from linear to on-demand, CTV-based television has been going on for 10 years, and it has been mostly SVOD-centric until now. The imminent launch of cheaper, ad-supported tiers from both Netflix and Disney+ will expand the reach and ad inventory offered by AVOD. While the two new offerings may take ad budgets from other media properties (AVOD or linear TV) MAGNA believes these new offerings will “grow the pie” rather than cannibalize existing budgets or incumbent vendors like Hulu, Peacock, Paramount+ and “FAST” channels, which will continue to grow. As a result, the long-form AVOD/CTV segment will accelerate from +22% in 2022 to +33% in 2023, to reach $6.3 billion in total advertising sales.

Next MAGNA forecast (U.S. and Global): December 2022

Source: MAGNA Ad Forecast September 2022

ABOUT THE RESEARCH
The MAGNA research is media centric. It monitors net media owners advertising revenues based on a bottom-up analysis of financial reports and data from media trade organizations; other ad market studies are based on tracking ad insertions or consolidating agency billings. The MAGNA approach provides the most accurate and comprehensive picture of the market as it captures total net media owners’ ad revenues coming from national consumer brands’ spending as well as small, local, “direct” advertisers. Forecasts are based on economic outlook and market shares dynamic. The full report contains more granular media breakdowns and forecasts to 2025, for 70 markets. Next Global Forecast: December 2022 – Next U.S. Forecast: September 2022.

Read More at MAGNA GLOBAL

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