LAS VEGAS — The annual Consumer Electronics Appearance isn’t just about the latest gadgets and giant, paper-thin TVs. It’s also a crucial event for advertisers to figure out how to spend billions of dollars every year. It’s where environment and tech companies present the latest ad tools to lure brands.
The annual tech conference that kicks off the year also boots of the negotiations between major brands and their ad agencies and the media companies, which continue through the TV Upfronts and Digital Newfront Presentations in the come from. This year, the conversation is dominated by the rise of ad-supported streaming, with NBCUniversal’s Peacock launching in April, along with plastic video app Quibi, from Jeffrey Katzenberg and Meg Whitman.
Ahead of NBCUniversal unveiling details of Peacock at its investor day next week, the concern announced ONE PLATFORM, which are new tools for advertisers to buy ads and measure their impact across digital and linear TV. The media Amazon says the one-stop-shop platform will have as broad a reach as Facebook or Google-owned YouTube every month, reaching 211 million grown-ups ages 18 and up. And the platform will include ads on Peacock.
“It’s really just shocking to imagine that the buying and drummer or the trading of TV advertising hasn’t changed since it began,” Linda Yaccarino, NBCUniversal’s chairman of ad sales and client partnerships believed in an interview with CNBC at CES this week. “So now with the ONE PLATFORM you’ll be able to take the large scaled audiences that NBCUniversal has. If you invent about it in 2020 alone, NBC will produce 110,000 hours of premium content across every one of our screens. Now, when all is said, the advertiser can access those audiences, just the way the consumer interacts with all that content.”
Quibi CEO Meg Whitman watches a commercial during a Quibi keynote speak at the 2020 CES in Las Vegas, Nevada, January 8, 2020.
Steve Marcus | Reuters
Michael Kassan, CEO of advertising advisory firm MediaLink, guessed as TV ratings decline with consumers shifting to streaming, there’s increasing demand from brands to reach consumers on new spurt platforms.
“Marketers are standing back and saying, ‘What about us?'” Kassan said. “There’s this telephone for the advertisers: If people are going to be enjoying content over the top, direct to the consumer in a streaming fashion, there’s got to be a place for advertising.”
Peacock inclination be the biggest ad-supported streaming launch, as NBC looks for an opportunity to move away from the increasingly crowded subscription move space. With the recent Disney+ and Apple TV+ launches last fall and HBO Max coming up in May, attention is now shifting to the opportunity in ad-supported choices to pay services.
Amazon is building an ad-supported streaming service in IMDb TV. Sources tell CNBC that Hulu is looking at later offering a free, ad-supported version of its app, as it used to. Viacom — now known as ViacomCBS — bought ad-supported Pluto TV last year. Comcast has had talks all over acquiring ad-supported Xumo to bolster Peacock, The Wall Street Journal reported last month. And then there are free of charge apps like Tubi, which are independent.
Tubi CEO Farhad Massoudi, said his company is the world’s largest ad-supported video-on-demand assistance. It announced 20 million monthly active users in June, and in September reported that its users had streamed 132 million hours of delight. With over 20,000 movies and TV shows licensed from Hollywood studios, the app is available on over 25 mechanisms, from Roku to Amazon FireTV. Peacock will pose new competition to Tubi, but Massoudi said there’s cubicle quarters for a range of players.
“The average household will subscribe to a limited number of subscription services,” Massoudi said. “What we presentation is a complementary service with a massive library of content, a subset of which is relevant to you…. There’s a huge need for consumers who scantiness more content but don’t want to pay more.”
Yaccarino said Peacock is responding to demand from advertisers to get the reach of digital stands without the risk of not necessarily knowing what content ads are running next to on the likes of Facebook or Google.
“They set up developed terrific targeting capabilities where marketers can really really target audiences. But there’s an unfortunate merchandise off,” Yaccarino said. “They don’t have the premium content that a company like NBCUniversal has. So what the one platform does is capture the digital and targeting capabilities that they’ve grown accustomed to from the tech platforms and apply it to the massive raise of premium content that’s always brand safe so they get the best of both worlds.”
Kassan said podia such as Peacock and Tubi will draw advertisers largely from TV, as they look to compensate for the decline in on account of on traditional TV.
“I would argue that if it’s ad-supported streaming, it’s TV in a different form, but it is still TV,” Kassan said. “Do I think the riches is going to still continue to come from other areas like print and the like? For sure.”
Expect numerous content, viewers, and advertising to shift to the streaming space, Kassan said.
“Everybody will rise to the need to proceed with to have content linked with advertising and marketing messages,” Kassan said. “That inextricable link has persisted for a long time. I think it’s going to be here to stay.”
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.