The State of Media Q2 2018 - 4C Insights

 
The State of Media Q2 2018 - 4C Insights
The State of Media
Q2 2018
The State of Media Q2 2018 - 4C Insights
Contents
INTRODUCTION...................................................... 2

DIGITAL ADVERTISING........................................... 3
Facebook.......................................................................................................4
Instagram......................................................................................................5
LinkedIn.........................................................................................................6
Pinterest........................................................................................................7
Snapchat........................................................................................................8
Twitter............................................................................................................9

TV RANKINGS....................................................... 10
US Broadcast & Cable TV Ad Rankings......................................................10
US NBA TV Ad Rankings............................................................................. 11
UK TV Ad Rankings.....................................................................................12
TV Social Lift Rankings................................................................................13
Seasonal TV Social Lift Rankings.................................................................14

TRENDS................................................................. 15
Advanced TV Upfront and Center..............................................................15
Global Consumers Wake up to Data Security.............................................16
Audience-Based Approaches are More Critical than Ever..........................17

CONCLUSION........................................................ 18
Meet the Metrics.........................................................................................18
The State of Media Q2 2018 - 4C Insights
Introduction
In Q2 2018, the media world continued to adapt to       Continue reading our State of Media report to get the
industry-changing developments. In the aftermath of     full view of Q2 2018 advertising trends on premium
the Cambridge Analytica scandal, which coincided        channels across screens, specifically:
with the beginning of GDPR, privacy was a topic
on every marketer’s mind this quarter. While some       DIGITAL ADVERTISING
skeptics predicted a doomsday scenario, 4C saw
a 15% overall increase in digital ad spend quarter-     •     Based on a representative sample of brands
over-quarter (QoQ) and 49% increase year over- year           active on 4C across Facebook, Instagram,
(YoY), showing that advertisers aren’t shying away            Twitter, LinkedIn, Pinterest, and Snapchat.
from social and mobile platforms.                       •     The total sample for our Q2 report included
But all the fireworks weren’t confined to the digital         more than $250 million in media spend across
space. The second quarter of 2018 shook up the TV             1,000+ brands.
industry, particularly with the high-profile merger
of AT&T and Time Warner, the results of which will      TV ADVERTISING
change the business of television for years to come.    •     Using our proprietary Teletrax TV monitoring
The Upfronts also signaled that the TV industry               technology, which tracks 2,100+ channels, we
is ready to make a shift, with announcements like             looked at which brands were advertising the
Turner’s President calling for the end of traditional         most in the US and UK over the past quarter.
measurement metrics and NBCU introducing C-Flight.
As networks turn to new cross-screen methods for        •     We measure cross-screen engagement,
finding their audience and measuring engagement,              combining TV & social data together to
4C can help uncover audience personas, values, and            determine which brands saw the biggest impact
affinities for more intelligent targeting.                    on social engagement following TV ad spots.

The State of Media Advertising Q2 2018              Page 2                                  ©2018 4C Insights, Inc.
The State of Media Q2 2018 - 4C Insights
Digital Advertising
                                                   Each of the digital publishers supported as
                                                   inventory partners through 4C saw a YoY increase
                                                   in ad spend. Since seasonality tends to cause
                                                   advertising investment to fluctuate on a quarterly
                                                   basis, year-over-year increases are typically a
                                                   strong indicator of sector health.
                                                   In Q2, the travel and home & garden verticals
                                                   made outsized contributions to advertising
                                                   growth through 4C across several publishers, in
                                                   keeping with the trend for both vacations and
                                                   home improvement activity that increases in the
                                                   spring season. Brands who reached destination-
                                                   minded consumers with relevant content saw
                                                   great results. For example, during the Kentucky
                                                   Derby, Woodford Reserve captured the attention
                                                   of TV viewers who wanted to feel like they were at
                                                   the races by syncing Twitter ads to TV moments.
                                                   Kraft Heinz also used TV Sync to connect with
                                                   consumers by syncing Facebook ads to TV
                                                   commercials for Heinz Soups, targeting audiences
                                                   stuck at home during the chilly spring months.

The State of Media Advertising Q2 2018   Page 3                                    ©2018 4C Insights, Inc.
The State of Media Q2 2018 - 4C Insights
Facebook
Facebook saw a 26% increase YoY through 4C in Q2 and increases in ad pricing and engagement metrics. New
developments like Story Ads continue to draw advertisers to the platform. Any fallout from Cambridge Analytica
was not apparent in our data. As our CMO, Aaron Goldman, wrote in MediaPost, “when we look back in a few
years, we’ll characterize this period as a mere pit stop while the Facebook train kept a-rollin’.” Additionally, the
deprecation of Partner Categories creates new opportunities for advertisers to use 4C Audience Hub to reach
their proven segments.

                     FACEBOOK SPEND YoY         CPM      CTR       CPC    CPM YoY     CTR YoY      CPC YoY
                           Overall        26%   $4.66   1.13%     $0.41       33%          10%           21%

From a vertical perspective, the education and travel sectors drove the most YoY growth through 4C for
Facebook in Q2. Facebook’s push to bring highly visual aspects from Instagram into Facebook ad placements
is resonating with brands looking to draw in their audiences using visual cues.

                       VERTICAL SPEND YoY       CPM      CTR       CPC    CPM YoY     CTR YoY      CPC YoY
                        Education        462%   $7.77   1.27%     $0.61       114%        185%          -25%
                             Travel      500%   $7.74   1.75%     $0.44      159%          89%           37%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q2 2018                  Page 4                                   ©2018 4C Insights, Inc.
The State of Media Q2 2018 - 4C Insights
Instagram
Advertising spend through 4C increased 204% YoY for Instagram in Q2. Instagram continues to be a popular
investment for advertisers looking for high-impact placements. Instagram announced IGTV in Q2, and
according to Mara Greenwald, Media Director at Performics, “While ads are not yet available in IGTV, we
can make assumptions about what the product will look like. IGTV ads will likely be in a full-screen, in-stream,
non-skippable format. With viewability concerns about feed-based video content, IGTV has huge potential for
a successful ad product, especially as social video continues to be measured more closely with television and
online-video.”

                    INSTAGRAM SPEND YoY           CPM      CTR      CPC     CPM YoY   CTR YoY    CPC YoY
                           Overall        204%    $4.62   0.19%     $2.42       -6%      16%          -19%

As was true across the board this quarter, travel and home & garden brands drove growth on Instagram through
4C. This trend is due mainly to seasonality, but Instagram’s direct response ad placements and strength as a
visual platform help draw in these industries as well.

                       VERTICAL SPEND YoY         CPM      CTR      CPC     CPM YoY   CTR YoY    CPC YoY
                             Travel      1,934%   $7.00   0.51%     $1.38      -27%      87%          -61%
                Home & Garden             842%    $5.69   0.28%     $2.05      26%       89%          -33%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q2 2018                    Page 5                               ©2018 4C Insights, Inc.
The State of Media Q2 2018 - 4C Insights
LinkedIn
LinkedIn saw the largest YoY increase in ad spend through 4C in Q2 at 212%. Video Ads rolled out to marketers
in Q2, contributing to the growth in budget.

                       LINKEDIN SPEND YoY          CPM      CTR      CPC     CPM YoY   CTR YoY    CPC YoY
                           Overall        212%    $30.19   0.34%     $8.98      84%      110%          -12%

The health and travel verticals led LinkedIn’s advertising growth through 4C in Q2, with 1,257% and 1,411%
increases YoY, respectively. As LinkedIn continues to introduce more visual ad formats, verticals like travel that
rely heavily on imagery are investing more in these placements.

                       VERTICAL SPEND YoY          CPM      CTR      CPC     CPM YoY   CTR YoY    CPC YoY
                            Health       1,257%   $61.77   0.49% $12.56         296%     678%          -49%
                             Travel      1,411%   $34.74   0.63%     $5.52      35%      116%          -38%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q2 2018                     Page 6                               ©2018 4C Insights, Inc.
The State of Media Q2 2018 - 4C Insights
Pinterest
Ad spend on Pinterest increased 36% YoY through 4C. Offerings like Shoppable Pins, which expanded to more
advertisers this quarter, continue to draw advertisers to the platform.

                     PINTEREST SPEND YoY        CPM      CTR      CPC     CPM YoY    CTR YoY     CPC YoY
                           Overall       36%    $3.11   0.62%     $0.50       7%          4%            3%

Brands in the entertainment and home & garden verticals contributed to Pinterest’s YoY advertising growth
through 4C this quarter. With Pinterest’s nature as a visual search engine, the platform lends itself to brands in
the home & garden industry, which can benefit from consumers using Pinterest to plan for home improvements.

                       VERTICAL SPEND YoY       CPM      CTR      CPC     CPM YoY    CTR YoY     CPC YoY
                   Entertainment         297%   $5.44   0.38%     $1.44      164%        20%         121%
                Home & Garden            145%   $3.47   0.27%     $1.28      35%        -32%           98%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q2 2018                  Page 7                                 ©2018 4C Insights, Inc.
The State of Media Q2 2018 - 4C Insights
Snapchat
Snapchat advertising spend increased 45% YoY through 4C, led primarily by the health and apparel verticals.

                     SNAPCHAT SPEND YoY           CPM      CTR      CPC     CPM YoY   CTR YoY    CPC YoY
                           Overall         45%    $2.80   0.34%     $0.81      -32%      -32%           -1%

Snap introduced Shoppable AR lenses in Q2, offering advertisers a new direct response ad placement, and
helping to draw in advertisers. As our CMO, Aaron Goldman wrote in Adweek. “When it comes to AR,
Snapchat has reached significant scale, with 70 million people playing with AR Snaps each day for an average
of three minutes each based on figures provided by the company. Doing the math here puts this activity
on par with short-form video consumption in terms of daily time spent, but much more immersive in terms
of audience engagement." Liz Brock, VP, Group Director at Socialyse says her team is "currently live with
Snap's Alpha R&F buying for AR lenses for our client Michelin, which was a first to market opportunity. We
have seen strong performance thus far and look forward to viewing the full campaign performance and the
ability to share with other clients for future activation strategies."

                       VERTICAL SPEND YoY         CPM      SUR      CPSU    CPM YoY   SUR YoY   CPSU YoY
                          Apparel         701%    $2.85   0.46%     $0.62      -25%      -34%          13%
                            Health       1,553%   $6.64   1.10%     $0.61      -18%      -57%          93%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q2 2018                    Page 8                               ©2018 4C Insights, Inc.
The State of Media Q2 2018 - 4C Insights
Twitter
Twitter saw a 26% YoY increase through 4C. As the platform continues to build its reputation as a destination
for video and live streaming, advertisers are looking for opportunities to reach audiences during this content.
Options like emoji targeting continue to grow, with one major coffee brand showing promising results using
the functionality through 4C to achieve a 260% increase in engagement.

                        TWITTER SPEND YoY        CPM      CTR       CPC    CPM YoY    CTR YoY    CPC YoY
                           Overall       26%    $6.61    0.79%     $0.83        2%       22%          -16%

The home & garden and travel verticals led advertising growth through 4C for Twitter in Q2. As Twitter finds its
groove in the live programming space, it’s beginning to draw in a more mass market audience, and advertisers
looking to appeal to this demographic are following suit. As our CMO, Aaron Goldman, wrote in an Adweek
column, “In a multidevice reality, live programming is still where shared media experiences across screens
hold the most potential for creating connections between brands and consumers. Evidence of this abounds,
particularly around mega-viewing events in entertainment and sports.”

                       VERTICAL SPEND YoY        CPM      CTR       CPC    CPM YoY    CTR YoY    CPC YoY
                Home & Garden            917%   $5.72    0.47%     $1.23     -7.65%      -25%          24%
                             Travel      826%   $10.91   1.05%     $1.04     464%        -10%        524%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q2 2018                   Page 9                                ©2018 4C Insights, Inc.
TV Ad Rankings
 TV viewing is now a multi-screen experience, and marketers are seizing the opportunity to mirror that experience
 with multi-screen advertising. In Q2, major sporting events like the NBA Finals and World Cup – and the ads
 accompanying them – drew in global audience attention across screens.
 During Q2, in the US, Toyota was the biggest broadcast TV advertiser and Geico held its spot as the top cable
 advertiser. Brands with mass market appeal like car manufacturers, pharmaceuticals, and insurance companies
 dominated the rankings for US TV this quarter.

                BROADCAST PRIMETIME                                                 CABLE PRIMETIME
  RANKED             AD       AD                        PREV        RANKED          AD      AD                            PREV
  ADVERTISER         MINS     SPOTS       QoQ    YoY    RANK        ADVERTISER      MINS    SPOTS    QoQ        YoY       RANK

 1. Toyota          474       1,042       17%    -19%    4         1. Geico         6,867   13,817   -27%      -6%          1
 2. Nissan          473       961         6%     -8%     3         2. DirecTV       6,185   12,379   -16%      13%          2
 3. Chevrolet       447       896         -5%    -11%    2         3. Progressive   4,605   9,173    -3%       24%          3
 4. Ford            346       728         0%     -11%    5         4. HUMIRA        3,935   3,935    9%        12%          6
 5. Geico           328       678         -32%   -10%    1         5. Domino’s      3,676   12,649   44%       8%
 6. McDonald’s 325            926         16%    59%     9         6. Liberty Mut. 3,460    9,362    -11%      12%          5
 7. Spectrum        309       376         31%    15%               7. Verizon       3,378   7,572    45%       25%
 8. Lyrica          302       322         -13%   -1%     6         8. Lowe’s        3,155   9,177    60%       85%
 9. Honda           280       564         0%     -15%    8         9. ENTYVIO       2,840   2,793    30%       -32%
 10. Verizon        267       550         33%    -12%              10. Allstate     2,648   6,770    57%       42%

See "Meet the Metrics" on page 18.

 The State of Media Advertising Q2 2018                        Page 10                                     ©2018 4C Insights, Inc.
US TV Ad Rankings
The NBA season came to a close with the Playoffs and Finals during Q2. During NBA programming, Verizon
was the top advertiser, and league sponsors like Kia and State Farm also made the top ten.

                NBA BASKETBALL
 RANKED                 AD         AD
 ADVERTISER             MINS       SPOTS   YoY
 1. Verizon            337        733      32%
 2. DirecTV            302        604      58%
 3. Kia                267        538      -18%
 4. Gatorade           246        985      -14%
 5. Corona Extra       234        518      17%
 6. State Farm         214        553      0%
 7. Taco Bell          205        697      -7%
 8. AMEX               203        396      16%
 9. Burger King        200        805      -9%
 10. Nissan            147        295      -28%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q2 2018            Page 11                            ©2018 4C Insights, Inc.
UK TV Ad Rankings
In addition to US TV advertising, we use our Teletrax TV monitoring technology to track advertising around
the world, including in the UK. McDonald’s was the top advertiser overall and on Free to Air Peak television
in the UK in Q2, and Oral-B took the top spot for Pay TV. Brands like Gocompare.com and Renault increased
their ad investment significantly this quarter to join the top 10 overall advertisers.

                           OVERALL                                                        FREE TO AIR PEAK
 RANKED                       AD         AD                    PREV     RANKED                AD      AD                      PREV
 ADVERTISER                   MINS       SPOTS   QoQ     YoY   RANK     ADVERTISER            MINS    SPOTS   QoQ      YoY    RANK

 1. McDonald’s                5,875 11,664 31%          90%     3       1. McDonald’s         1,963   3,824   48%     118%       2

 2. Halifax                   4,620 6,826        87%    50%             2. Halifax            1,434   2,077   94%     67%        7

 3. Oral-B                    4,450 8,790        -33%   30%     1       3. Compare The Market 1,140   3,437   46%     6%         6

 4. Compare The Market        4,439 11,661 46%          0%      9       4. Lidl               1,110   2,633   57%     58%

 5. Direct Line               4,249 8,533        1%     26%     4       5. Warburtons         1,101   542     N/A     N/A

 6. Moneysupermarket.com 4,171           10,573 47%     -21%            6. Huawei             1,068   2,071   N/A     N/A

 7. Warburtons                3,958 1,945        N/A    N/A             7. Gocompare.com      1,066   1,899   3,640% 176%

 8. Renault                   3,770 4,200        234%   63%             8. Renault            1,047   1,172   287%    52%

 9. Gocompare.com             3,746 6,627        4,333% 21%             9. IKEA               1,008   1,698   345%    54%

 10. Lidl                     3,672 8,619        48%    40%             10. Lloyds Bank       954     1,678   50%     68%

                        PAY TV PEAK
 RANKED                      AD      AD                        PREV
 ADVERTISER                  MINS    SPOTS       QoQ    YoY    RANK     See "Meet the Metrics" on page 18.
 1. Oral-B                   814     1,610       -26%   52%     1

 2. Compare The Market 726           1,573       47%    -39%    7
 3. McDonald’s               680     1,350       16%    104%    4
 4. Pantene                  545     1,100       77%    78%

 5. Pampers                  527     1,084       43%    60%

 6. Halifax                  518     816         63%    18%

 7. Huawei                   465     943         N/A    N/A

 8. TUI                      450     2,265       -36%   N/A     2
 9. Paddy Power              438     795         48%    25%

 10. Samsung                 431     730         3%     -61%    9

The State of Media Advertising Q2 2018                              Page 12                                   ©2018 4C Insights, Inc.
TV Social Lift Rankings
Each quarter, we use our Teletrax TV monitoring technology and social media engagement data to generate
TV Social Lift Rankings, where we chart the brands that experienced the greatest lift in social engagement
following TV ads. In the US, DirecTV’s humorous ads highlighting things most people wouldn’t rather do than
subscribe to DirecTV, and Arby’s ads comparing its logo to a fish, helped the brands take the top spots for
broadcast and cable advertisers. In the UK, telecom giant Virgin Media took the top spot overall with ads
featuring deals for its V6 box.

                            US CABLE                                                     US BROADCAST
 RANKED               TV SOCIAL      TV      SOCIAL MEDIA   PREV       RANKED           TV SOCIAL     TV      SOCIAL MEDIA     PREV
 ADVERTISER           LIFT IMPACT    SPOTS   ENGAGEMENTS    RANK       ADVERTISER       LIFT IMPACT   SPOTS   ENGAGEMENTS      RANK

 1. Arby's            89%            17,850 921,023                   1. DirecTV        97%           570     73,355             2
 2. Disney            77%            30,094 1,829,067        1        2. Applebee's     93%           563     71,712             3
 3. Doritos           72%            11,122 35,126                    3. Amazon         89%           235     293,956

 4. Ebay              71%            3,255   351,986         3        4. Arby's         85%           365     921,023

 5. Sprite            69%            2,700   25,258                   5. Heinz          80%           244     41,689

 6. Olive Garden      68%            23,207 68,321                    6. Olive Garden   71%           1,027   68,321

 7. Walmart           65%            17,482 476,222          5        7. IKEA           67%           420     45,476

 8. Target            62%            15,001 407,958          10       8. Apple          66%           748     532,809

 9. Red Lobster       62%            13,242 126,260                   9. AT&T           66%           948     226,111

 10. Applebee's       57%            13,576 71,712           7        10. McDonald's    66%           2295    282,236            6

                             UK TV
 RANKED                TV SOCIAL     TV      SOCIAL MEDIA   PREV
 ADVERTISER            LIFT IMPACT   SPOTS   ENGAGEMENTS    RANK       See "Meet the Metrics" on page 18.
 1. Virgin Media      171%           8,453   13,6451         1
 2. Tesco             119%           5,537   133,891         3
 3. Vodafone          92%            1,813   55,933          5
 4. Marks & Spencer 91%              4,776   464,342

 5. O2                91%            4,043   43,490          7
 6. Morrisons         88%            3,283   186,354         2
 7. BMW               86%            2,194   975,798

 8. Aldi              86%            8,956   236,534

 9. Currys PC world   81%            6,976   16,853          9
 10. Amazon           80%            14,221 98,436           6

The State of Media Advertising Q2 2018                             Page 13                                     ©2018 4C Insights, Inc.
Seasonal TV Social Lift Rankings
In addition to US and UK TV Social Lift Rankings, we also look into the ads that resonated with viewers during
special seasonal events. During the 2018 NBA Finals, Modelo saw the greatest lift in social media engagement
following TV ads with its spots featuring UFC fighter Stipe Miocic. During the first half of the World Cup, Paddy
Power had the greatest lift in social media engagement following UK TV ads.

                          WORLD CUP                                                      NBA FINALS
 RANKED                 TV SOCIAL        TV      SOCIAL MEDIA         RANKED               TV SOCIAL     TV        SOCIAL MEDIA
 ADVERTISER             LIFT IMPACT      SPOTS   ENGAGEMENTS          ADVERTISER           LIFT IMPACT   SPOTS     ENGAGEMENTS

 1. Paddy Power         696%             18      96,910               1. Modelo            3,436%        2         7,569
 2. Just Eat            203%             4       4,836                2. Chipotle          1,394%        1         4,095
 3. Budweiser           182%             69      12,905               3. Subway            941%          3         7,903
 4. ITV                 145%             3       163,193              4. Wells Fargo       770%          8         1,158
 5. Screwfix            121%             26      11,623               5. Google            569%          4         50,248
 6. Coral               80%              8       144,748              6. Exxon Mobil       420%          5         1,733
 7. Betfair             42%              12      7,006                7. Kia               373%          12        3,405
 8. Hyundai             30%              2       4,061                8. Taco Bell         365%          9         15,850
 9. Currys PC World 29%                  6       4,319                9. Progressive       313%          1         2,742
 10. Visa               29%              2       2,827                10. Beats by Dre     285%          2         17,103

See "Meet the Metrics" on page 18.

The State of Media Advertising Q2 2018                          Page 14                                      ©2018 4C Insights, Inc.
Trends
ADVANCED TV UPFRONT AND CENTER
Each year during Upfronts season, the industry talks about how TV planning & buying needs to change, and
by the time the next Upfronts season rolls around, we seem to have the same conversation again. However,
2018 demonstrated some true steps forward, such as the NBCUniversal announcement and A&E proclamation
that they will start measuring ad performance by business outcomes, CBS's foray into dynamic ads, Disney's
launch of advanced advertising suite Luminate, Fox’s cutbacks on in-program ad minutes, Viacom's advanced
advertising push with Comcast, and Turner’s call for audience-based measurement. NBCU’s step is one more
in the company’s path to leading the advanced TV space, with previous innovations like programmatic linear
ads available through 4C.
As new buying options for marketers continue to appear, key industry players like Mediaocean are continuing
to evolve their place in the ecosystem.

                           [We are] systematically converging key planning, buying and measurement
                           processes to drive accountability in the value chain. Marketers and their
                           agents must have clear visibility and trust the supply chain to continue to
                           invest incremental dollars into media overall…
                           RAMSEY MCGRORY, CHIEF REVENUE OFFICER AT MEDIAOCEAN

In addition to changes directly impacting the advertising space, acquisitions like AT&T’s purchase of Time
Warner and the battle between Disney and Comcast for 21st Century Fox represent a seismic shift in the
television industry. With AT&T, one of the industry’s largest telecommunications providers, taking ownership
of all Time Warner properties, the company will possess the ability to use viewer data to inform programming,
even on networks like HBO where in-show advertising currently doesn’t exist. Many have predicted that
OTT networks like Netflix and Amazon would eventually branch out into dynamic ad insertion or product
placement, and AT&T’s future as a content producer may send the industry titan down that same path.
“Imagine every billboard in a car chase scene, every airline in an airport scene, every computer at the company
being a dynamic unit available for purchase by different buyers along different targeting parameters. The
technology is still a few years from its tipping point, but has the potential to fundamentally restructure
video advertising,” says our CEO, Lance Neuhauser, of the appeal of dynamic ads in AdExchanger.
With all of these changes, it’s never been less true that TV is on its last legs. Our CPO, Anupam Gupta,
corrects those who believe this outdated mantra in a byline for Bulldog Reporter, saying “TV advertising
simply isn’t dying in favor of digital advertising. However, that doesn’t mean TV advertisers can’t learn a thing
or two from their digital counterparts.” Matt Spiegel of MediaLink reinforces this notion and what it means
to industry practitioners.

                           What is constant is the opportunity right now to reinvent the model. No
                           matter your role, invention and innovation is being rewarded.
                           MATT SPIEGEL, MANAGING DIRECTOR AT MEDIALINK

The State of Media Advertising Q2 2018                   Page 15                              ©2018 4C Insights, Inc.
GLOBAL CONSUMERS WAKE UP TO DATA SECURITY
GDPR is in full swing in EMEA, and now the conversation is turning to whether the US and the rest of the world
should adopt similar practices. While the initial shock of the Cambridge Analytica scandal has subsided, it has
forever shone light on the importance of data privacy and security, creating new awareness among consumers
about how their information can be used. However, following Facebook’s example, the big digital publishers
have begun tightening up and clarifying privacy regulations, helping to squash any hesitation for continued
investment from marketers, as noted by Sean Cotton, President of Coegi.

                           Despite the concerns over privacy and ‘fake news’ we saw continued
                           increased utilization of social platforms within marketing strategies. It also
                           has become more important for marketers to develop custom audiences
                           for social, especially Facebook, as data restrictions have tightened.
                           SEAN COTTON, PRESIDENT OF COEGI

The State of Media Advertising Q2 2018                   Page 16                              ©2018 4C Insights, Inc.
AUDIENCE-BASED APPROACHES ARE MORE CRITICAL THAN EVER
In light of the recent spotlight on personal data and how it can and can’t be used on the internet, consumers
have woken up to how their data is being used. Because of this, it has never been more important for brands
to create a meaningful value exchange with their customers.
“What marketers need is really one platform to do audience-driven, cross-channel marketing,” says Anupam
Gupta in an interview with Beet TV. If brands are able to connect with their audiences to create value through
a relevant, cohesive experience, then their audience will in turn be more willing to provide information about
themselves that will create more meaningful connections.
“We are continually building our capabilities to construct unique Custom Audiences from proprietary
measurement and data sources then targeting these audiences cross-platform and cross-channel,” says Coegi’s
Cotton. With audience-based campaigns, Coegi sees “double digit lifts in engagement and higher conversion
rates from audience modeled campaigns. Upper funnel impact is also much better with this approach.” Mara
Greenwald at Performics echoes this sentiment:

                      [Brands need] to know where
                      their audiences are overlapping,
                      and where they can reach them
                      to drive the strongest return. The
                      audience-first shift is in full swing,
                      and brands without ownership or
                      strategy behind audiences they are
                      leveraging will fall behind.
                      MARA GREENWALD,
                      MEDIA DIRECTOR AT PERFORMICS

This dynamic between brands and consumers and the
importance of an audience-centric experience was reflected
in our recent research with Advertiser Perceptions. The
survey of 303 senior US and UK marketers found that 89%
of agree that audience-based campaigns are key to success,
and 79% of marketers are already running integrated, cross-
channel campaigns, while 22% plan to within the next year.
Technology must evolve to keep pace with this new marketing
approach: 85% of marketers say that the current fragmented
media landscape requires a new marketing structure that
enables advertisers to operate seamlessly between publishers
and platforms, including digital and TV. As Aaron Goldman
noted in his contributed article for Campaign: "More than
half of advertisers who do not include TV in cross-channel
campaigns consider the industry reliance on GRPs as standard
measurement an inhibitor of investment in the platform."

The State of Media Advertising Q2 2018                  Page 17                             ©2018 4C Insights, Inc.
In Conclusion
Throughout Q2, marketers continued to move their teams and campaigns towards a holistic, audience-based
approach. As summer wraps up and we look ahead to the fall, key events such as the US mid-term elections,
the return of the NFL and the Premier League are sure to carry this trend forward. We’ll continue to monitor
how marketers are capturing audience attention across screens, and we’ll be back in October with our Q3 State
of Media Report, including highlights from the World Cup.

Meet the Metrics
CPM: Cost-Per-Thousand Impressions based on total spend               SUR: Swipe-Up Rate based on total impressions and Swipe-Ups
and impressions across all publisher's campaigns. Includes all        across all Snapchat campaigns. Includes all objectives.
campaign objectives.
                                                                      TV Ad Rankings: To understand which brands are most active on
CPC: Cost-Per-Click based on total spend and total clicks across      TV, 4C tracks ads across broadcast and cable networks, covering
all publisher's campaigns. Includes all campaign objectives.          more than 2100 channels in 76 countries. Advertisers are ranked
                                                                      according to total ad minutes aired in each category.
CTR: Click-Through Rate based on total impressions and clicks
across all publisher's campaigns. Includes all campaign objectives.   TV Social Lift: By comparing each brand’s social media
                                                                      engagements in the two-minute period after the start of a TV
Total Spend YoY: Change in publisher's social advertising spend
                                                                      ad to the brand’s average social media engagement rate, 4C
through 4C from Q2 2017 to Q2 2018.
                                                                      calculates the TV Social Lift Impact. Ultimately this is a measure
CPM YoY: Change in publisher's CPM from Q2 2017 to Q2 2018.           of how much more likely a consumer is to engage with the brand
                                                                      on social media after seeing its TV ad.
CPC YoY: Change in publisher's CPC from Q2 2017 to Q2 2018.
CTR YoY: Change in publisher's CTR from Q2 2017 to Q2 2018.
CPSU: Cost Per Swipe-Up based on total spend and total
Swipe-ups across all Snapchat campaigns. Includes all campaign
objectives.

The State of Media Advertising Q2 2018                           Page 18                                          ©2018 4C Insights, Inc.
ABOUT 4C
4C is global marketing technology company that delivers a unified platform for
audience discovery, media execution, and performance analysis. Leading brands,
global agencies, and media owners trust the Scope by 4C™ platform to identify their
most valuable audiences and reach them across channels and devices. With nearly $2
billion in annualized advertising spend running through Scope, 4C enables self-service
activation on Apple News, Facebook, Instagram, LinkedIn, NBCUniversal, Pinterest,
Snapchat, and Twitter as well as TV synced ads via display, search, social, and video.
The company also provides paid, earned, and owned media analytics leveraging its
Teletrax™ television monitoring network which detects over 400 million TV asset
airings on an annual basis. Founded in 2011 and based in Chicago, 4C has staff in
16 worldwide locations across the United States, United Kingdom, the Netherlands,
France, Hong Kong, India, Singapore, and the Philippines. Visit www.4Cinsights.tcom
for more information.
You can also read