The Converging Worlds of Content + Commerce reveals the exciting potential of brand-funded entertainment, and how this format creates commerce momentum for brands

New York, NY -July 26, 2022 – MAGNA Media Trials, in collaboration with Amazon Ads and Mediabrands Content Studio, recently revealed a new study examining the strong potential of brand-funded entertainment. The Converging Worlds of Content + Commerce explores the emerging realm of brand-funded entertainment, and how this unique format can work in sync with various shopping options to optimize the consumer shopping experience. The study proves that content is supreme when it comes to TV show viewership, and that brands should not feel held back by their category when exploring the domain of brand-funded entertainment. In addition, the study provides a framework for the ideal path from TV content to purchase, effectively more seamlessly connecting content and commerce.

The Converging Worlds of Content + Commerce shows that although there is high interest in purchasing products seen in TV shows, the current trajectory on the path to purchase can cause friction for consumers. In turn, this friction leads to frustrated consumers and a gap on the path to purchase. Forward-thinking brands should take note of these pain points and begin to think about how they can innovate in a way that would solve for this, which would have both short- and long-term positive implications for both the brand and consumers.

Brand-funded entertainment is fertile ground for exploration. Forward-thinking brands looking to optimize the consumer shopping experience should reimagine how they can synthesize their content and commerce experiences in a way that not only delights consumers but battles the long-held belief among marketers that these categories must be treated as mutually exclusive. Brand-funded entertainment is one solution that brands can leverage to bridge content and commerce. This study shows that audiences are reacting positively to brand-funded entertainment, especially among younger generations (e.g., adult Gen Z, Millennials). This positive reaction, in turn, fuels momentum for intent and purchase signals. Brands interested in bridging content and commerce should take note and decide if the brand-funded entertainment format would work for them.

“It’s a huge opportunity. Brands that are winning with today’s audiences understand that consumer brands are media brands. The opportunity to connect with consumers through content is far greater than the incidence in which consumers buy or use most brands’ products and services. If they create content that is compelling and has a direct connection to sales, it is a win-win for both the brand and audience.” – Brendan Gaul, Global Chief Content Officer, Mediabrands

“We’re entering an exciting period where there are incredible opportunities for content and commerce to come together to create a seamless and enjoyable experience for customers. The sky really is the limit for our viewers and brands when you have a modern broadcaster like Amazon Freevee that reaches a wide audience.” — Ryan Pirozzi, co-head of content and programming at Amazon Freevee.

Key Findings from The Converging Worlds of Content + Commerce include:
• Content before commerce: Consumers do not differentiate if TV shows are created by a brand – what keeps them watching is the content itself. When asking consumers why they chose to watch brand-funded entertainment, 59% of respondents said they found the show ‘Fun to watch.’ Other top reasons why respondents chose to watch brand-funded entertainment was because they ‘Enjoyed the content’ (45%), and ‘Learned something new’ (34%).
• Viewers are accepting of brand-funded entertainment vs. traditional commercials: Overall, consumers prefer brand-funded entertainment over the traditional TV ad format, with a higher index among those who primarily stream video content (+10%), compared to traditional pay TV viewers. Given the positive response to the brand-funded entertainment format, this is a prime opportunity for brands to weave themselves into culture, inspire motivation, and drive purchase intent among their audience.
• Reimagining content to commerce experiences for customers: The existing path to purchase can cause friction for the consumer, as it relates to products seen on TV shows. Over half of the consumers surveyed said they felt frustration when trying to purchase a product seen in a TV show (52%). Frustration was especially felt among younger generations, such as adult Gen Z (+13%) and Millennials (+7%). This project has proven there is tremendous scope when it comes to reimagining the consumer experience, from brand-funded entertainment through to purchase.
The full study can be found here.

About MAGNA
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn and Twitter.

About Mediabrands Content Studio
Mediabrands Content Studio (MBCS) is part of IPG Mediabrands, the media and marketing solutions division of Interpublic Group (NYSE: IPG). MBCS is a media-fueled content practice designed to network and grow Mediabrands’ content and creative capabilities around the world. Strategically pairing new models of storytelling with Mediabrands’ global audience insights, MBCS develops and creates short – and long-form Original, Branded, Performance, and Campaign Content and provides a suite of entertainment solutions including media, talent, and production partnership development that powerfully grow brands. For more information about MBCS, please visit http://www.mbcsww.com/.

Media Contact:
Zinnia Gill
Mediabrands
VP, Global Corporate Communications
(646) 965-4271

Study: Brands that have responsible data practices rewarded by UK consumers with 28% more purchase intent

-’The Person Behind the Data’ study by Ketch and IPG Mediabrands, MAGNA analyses consumer attitudes to how companies handle their data-

-More people “highly value” data privacy than other ethical issues we face today including sustainability and diversity

-Transparency the biggest factor for UK consumers-

 

London, UK. July 12 2022 – Ketch, the Trust by Design Platform for programmatic privacy and data stewardship and MAGNA, IPG Mediabrands global media investment and intelligence company, today announced the release of a groundbreaking new study designed to analyse consumer attitudes towards data privacy. ‘The Person Behind the Data’ has revealed that UK consumers will reward brands that have responsible data practices with 28% more purchase intent – the first time a link has been made between data practices and consumer purchasing behaviour.

The study, which surveyed 2,750 consumers, revealed that transparency was the most important factor for UK consumers. The lack of transparency, alongside control, were the main concerns for respondents – 58% don’t know how data is being used, and 75% don’t have control over their data.

58% of respondents said that the level of transparency has the largest impact on purchase intent, which far outweighed other factors including data minimisation (15%), data sharing practices (14%) and retention period (13%). For the first time, marketers can make a direct link between data privacy and sales.

This level of transparency also impacted consumer relationships with a brand. 53% of respondents would trust a brand more if their data is handled correctly and transparently. 38% would prefer the company over others, 33% would support the company more and 23% would tell others about the company.

“Our study has highlighted how consumers are becoming increasingly aware of how companies handle and use their data. For the first time, we are able to make a link between consumers and their purchase intent depending on how the brands they engage with handle their data” said Russell Howe, Vice President EMEA, Ketch. “All consumers are looking for is transparency – transparency with how their data is being used and how they can access it. Rather than treating data privacy as a box ticking exercise, forward thinking brands that make this a priority will reap the benefits long term.”

Erika Foster, Director, Standards & Investment Products EMEA at MAGNA said: “Responsible data practices should have been on brand radars even before the General Data Protection Regulation (GDPR) became enforceable in 2018 but, the findings of this survey provide statistical evidence of the positive impact good practices can have on consumer trust and ultimately purchase intent. We are proud to be leading efforts to support our clients, partners, and community in ensuring they meet their obligations though industry-leading programmes for ethical data sourcing, data protection impact assessments, privacy by design, and more.”

Headquartered in the US and with a European HQ in London, Ketch’s privacy solutions for privacy ops enable organisations to adapt programmatically to fast-changing regulations while managing risk and cutting operational and privacy engineering costs by 80%.

To view the report in full, visit The Person Behind the Data: Full UK Report.

‘The Person Behind the Data’ study surveyed 2750 respondents from a diverse representation across age, race/ethnicity, income, geographic location, and education. Ketch partnered with MAGNA, IPG Mediabrands global media investment and intelligence company to produce the study.

For more information about Ketch, visit www.ketch.com.

 

About Ketch

Ketch enables businesses to build trust with consumers and drive growth through data. Ketch’s Trust by Design platform is a coordinated set of applications, infrastructure, and APIs that collapse the cost and complexity of privacy operations and mobilises responsibly gathered data for deeper customer engagement and top-line growth. More information is available at www.ketch.com.

 

For further press information, please contact:

Andrew Durkin / Dan Walsh

e: [email protected]

m: 07887 998407

CONSUMERS ARE MORE AWARE OF HOW COMPANIES UTILIZE AND RETAIN THEIR DATA, IMPACTING BRAND TRUST, PREFERENCE AND PURCHASE INTENT

New Research by MAGNA, a unit of IPG Mediabrands, reveals 74% of consumers highly value their data privacy and will reward brands who are responsible data stewards with 23% increased purchase intent

New York, NY- July 12, 2022 –The way that companies handle personal data is a hot-button issue among consumers, according to a new study by MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, and Ketch, a privacy and data governance platform. The study, “The Person Behind the Data,” found increase in purchase intent of 23% for brands and companies with responsible data practices. Further, the study found that data privacy is a top priority to 74% of respondents.

The study explored the opinions of primary purchasers and decision makers about how companies handle their data. Privacy is as important a shared value for companies to focus on as environmental sustainability, and diversity and inclusion, with respondents ranking all three at highest levels of importance. Meanwhile, companies would do well to provide greater transparency and control for consumers, as 82% voiced concern about how their personal data is gathered and used.

“The findings highlight that offering meaningful transparency and greater choice over data collection and use is a commercial imperative. Creating a thoughtful, people-friendly experience for expressing those choices is a key component of trustworthy data practice that delivers to consumer expectation,” said Arielle Garcia, Chief Privacy Officer, at UM. “When people understand and appreciate the benefits of sharing their personal information with a company that they trust, they are more willing to participate in that exchange. In sum, these findings underscore the opportunity for companies that take a cross-functional approach to privacy and data initiatives, with stakeholders across legal, privacy, marketing, sales, IT, and customer experience.”

Other study findings include:

  • Lack of Transparency and Control: 57% of respondents agreed that not knowing where data is going or how it is used was a problem, and 64% said they felt they did not have full control of their data.
  • The Value Exchange: While 82% were concerned how data was gathered and used, 83% of respondents could see the value of sharing their data. Some of the benefits of sharing data include learning about new products (45%) having a personalized experience (45%) and receiving a benefit from the company (43%)
  • Storage Wars: How long companies store their data impacted trust (40%) and purchase intent (52%) more so than the amount of data collected, level of transparency and data-sharing practices.
  • Challenges by Industry: The study examined various industry verticals and found data collection practices impact purchase intent somewhat differently—Amount of data collected, by far, concerns telecom users at 55% while retail shoppers cited data sharing practices as their greatest concern at 44%.

 

“People see the value in data sharing but they are concerned about how companies are handling their personal information and think they should be doing more,” said Kara Manatt, EVP, Managing Director, Intelligence Solutions, at MAGNA. “It is an important issue that effects the bottom line and even long-term brand preference. Marketers spend billions of dollars and years building how people feel about their brands, and now, increasingly, data practices play a growing role in the brand preference and trust.”

“Brands are looking for the responsible path forward. What I love about this study is it confirms how important data privacy is to consumers in their relationship with brands and puts the numbers to that trust” said Jonathan Joseph, Head of Solutions & Marketing at Ketch. “Consumers care about data privacy, they understand the value exchange when sharing data, and will make purchase decisions based on how brands handle their data.”

“The Person Behind the Data,” surveyed a nationally representative sample of 2,751 people, in two (POV and conjoint) online surveys and incorporated the feedback from five, diversely populated focus groups.

The full study may be found here.

About MAGNA

MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn and Twitter.

About Ketch

Ketch enables businesses to build trust with consumers and drive growth through data. Ketch’s Trust-by-Design Platform is a coordinated set of applications, infrastructure, and APIs that collapses the cost and complexity of privacy operations and mobilizes responsibly gathered data for deeper customer engagement and top-line growth. To learn more, visit ketch.com.

 

 

Media Contact:
Zinnia Gill
Mediabrands
Vice President, Global Corporate Communications
(646) 965-4271

MAGNA FORECASTS AD INDUSTRY GROWTH WITH FIFA WORLD CUP, U.S. ELECTION

By  Tony Hao, Published on AdAge

Despite the current challenging economic and geopolitical conditions, Interpublic Group of Cos.’ Magna is forecasting growth in ad markets around the world. The media agency forecasts a 9.2% growth in global ad revenue to $816 billion by the end of 2022.

The agency released its advertising forecast this morning, one day after WPP’s GroupM published its ad revenue midyear forecast. Magna similarly predicts that the growth of the ad industry will slow down: the 9.2% global growth rate drops from last year’s midyear prediction of 14%.

“Most of the headwinds facing the advertising market this year were expected,” the forecast reads, quoting Vincent Létang, Magna’s global market research executive VP. Létang cited several factors that have contributed to Magna’s anticipation of the ad industry’s deceleration, including the unprecedented boom of the market in 2021, the supply chain issues and inflation that predated 2022, and privacy restriction changes exemplified by Apple’s iOS privacy updates.

The global economy has also witnessed a slowdown since the second quarter of this year, and the geopolitical situation in Ukraine has increased energy prices, discouraged trade, and exacerbated global inflation. All these factors will inhibit the expansion of the ad industry in the second half of 2022, said Magna, which accordingly abated its prediction of the 2022 global ad industry—at the end of 2021, it predicted global ad revenue would grow by 12% this year.

‘Organic and cyclical factors’

Nevertheless, the ad market is still slated to expand, thanks to “organic and cyclical factors,” Magna predicts.

In a phone interview, Létang enumerated numerous “organic” growth factors of the ad industry. In digital marketing and online media, for example, video and audio marketing is still far from reaching its plateau. “Millions of small businesses are still developing,” said Létang, “and digital advertising was doing none of that two years ago.”

Through the expansion of the digital advertising landscape that started last year, e-commerce skyrocketed, and the development of new products in consumer packaged goods and pharmaceuticals have been shifting market priorities. In addition, impending policy changes, exemplified by E.U.’s ban on gas-powered vehicles in 2035, have accelerated the innovation of “production, technology, and communication,” said Létang.

Magna’s “cyclical factors” refer to periodic events that stimulate the ad industry. “The U.S. election is an obvious one,” said Létang, which will generate “about $8 billion of political advertising that will go into local television.” Létang acknowledges that not all political ads this year will contribute to an increase in ad revenue, but “90% of [U.S.’s political ads in 2022] will be incremental.”

Aside from the U.S.’s local political events, international sports festivities will also contribute to the increase in global ad revenue. Létang mentioned the Beijing Winter Olympics, which took place last winter, and the Qatar World Cup, as examples. The World Cup in particular will have a stronger impact on the global advertising industry, given that it will be held in November, right before the holiday season, when marketing campaigns abound and ad rates soar.

Magna observes that these organic and cyclical factors have already translated to a strong ad market in the first quarter of 2022, in which the U.S., for example, saw a 14% increase in ad revenue. “Consumer mobility finally recovered,” Létang said, “especially when it comes to transit.” Other industries also saw organic growth, most noticeably the betting, tech and entertainment industries.

Digital, traditional media, TV

Magna predicts digital advertising sales to grow by 13% to reach $534 billion, 65% of the total ad sales, in 2022. Among different digital ad formats, digital video will see the most growth of 16%, while search will occupy the biggest market share of $265 billion. Social advertising will only experience an 11% growth, lower than both video and search. Besides the aforementioned Apple privacy restriction updates, the plateauing of user and client numbers on social media is another factor in the slow growth of social advertising, according to Létang.

Advertising revenue for traditional media (TV, radio, out-of-home, print, and cinema) will grow by 4% to $282 billion, which represents 94% of the pre-COVID traditional media revenue. As the global pandemic situation alleviates, out-of-home ad revenue will welcome a 10% increase. Audio and TV will grow by 4%, while publishing will decrease by 3%, Magna reports. Much of such growth of traditional media will come from ads generated by cyclical events—traditional media ad revenue would otherwise only grow by 2%.

Traditional media is slated to grow thanks to its digital shares. In publishing and audio, for example, 50% and 20% of their revenues, respectively, come from ads in the digital format.

TV ad sales also benefit from its digital share, specifically AVOD. Magna predicts AVOD revenue to grow by 10%-15%.

National forecasts

Magna expects U.S. advertising revenue to grow by 11.1%, to reach “a new all-time high at $326 billion” by the end of 2022 and account for 39.9% of the global market. Notable driving factors for U.S.’s ad industry include political ads and the recovery of entertainment and travel. On the other hand, pure-play digital media and social media, due to Apple’s new privacy restrictions, will continue to see the growth of their ad sales decelerate. CPG categories, due to the increasing gas price and the global supply chain issues, may stagnate or decrease their ad budgets.

Among other top-15 advertising markets around the world, India and South Korea will both post strong growth of 15% and 11% respectively, Magna predicts.

China, the second-largest ad market, which accounts for 15.4% of global ad revenue, will grow by only 8%. Magna attributes China’s lethargic market to the nation’s strict COVID lockdowns and increasingly tightened regulatory environment for digital media.

Germany is among the countries that will suffer the most from the current economic and geopolitical events of the world, as its ad market will only expand by 6%. Germany abundantly exports automobiles to China and imports raw materials from Russia and Ukraine.

Nevertheless, Germany’s ad industry stagnation appears only temporary. “They’re slowing down, but not falling off a cliff,” said Létang. “There’s resilience.”

 

Read the Global Ad Forecast

 

Read the Article in AdAge