is the best way to solve the Hollywood writers and actors strike? //
The ongoing strike of writers and actors by Hollywood studios against Hollywood is not a major issue for the martech community. Could martech help? Chris Kelly, CEO and founder of Upwave Analytics, a platform that provides brand advertising analytics, believes it is possible.
He believes that better advertising measurement for advertising video-on demand (AVODs), and subscription video on demand (SVODs), would encourage brands to spend more. Increased income for both sides would end the strike.
Arguments over money are not always rational. This conversation raised some interesting questions.
Interview edited for clarity and length. )
Q. Tell me how to end this strike.
A :This, as with all strikes, has to do with money and economics. The studios and content owners have been using a lot more language about the uncertain economics of streaming.
You can see that their AVODs have a higher average revenue per customer. The SVODs, or subscription video-on demand services, believe that they will be able to achieve this once they scale up. You think “OK, but how can we pay talent and end the strike?” The studios say we need better economics with streaming. And streaming is saying we have to scale up the average revenue per user on the advertising-supported side. You need to bring more brands onto CTV and streaming applications to achieve this.
Brands that we work with for advertising measurement want to know if AVOD is effective. The brands we work with to measure advertising want to know if AVOD works. These are important metrics, but we also measure brand outcomes. Was there a small change in brand awareness? You’re trying to increase favorability if you already have this awareness. Or they are trying to convert favorable feelings into consideration for a particular product, which people may like but not buy.
Q. How does this apply to here?
AThe brands tell us that when the traditional brand KPIs improve in CTV and streaming, they will invest more brand dollars. More brand dollars mean that the average revenue per AVOD user will increase. If AVOD revenues increase, assuming that we believe the studios, it will have a positive impact on their streaming economics. The economics of streaming, and how much and under what conditions it is paid out, are a major issue for both sides in the strike.
We’re neither strike experts nor union experts but it’s pretty obvious what’s at stake. Why not talk about ways to increase the size of the pie instead of fighting over who gets what portion? The pie will be worth more if it gets bigger. When we think of the strike, the dominoes are arranged in our minds.
Measuring is the key to success. Prove that brand advertising on these programs works. We’ll make more money if it works. If you make more money, it will grow the pie. This should ease tensions between studios and talent.
Q. Why do brands believe that the impact of advertising on AVOD/SVOD is different from linear TV? It’s me still watching my video.
A : That’s an excellent question. Why do you have different opinions if it’s the exact same content, on the exact same screen, for the same user? There are two possible answers to that question: the philosophical and the practical.
Philosophically, the answer is no. This requires that people go back and ask if linear campaigns have worked. In the world of measurement, linear campaigns are given a free pass. We have said for decades that the TV-Industrial Complex was how brands are built. It’s the way media ecosystems were built. How American news operations were set up. It got a free pass.
Ironically, the same questions that arise when I ask if my ads on broadcasting worked also come up. It’s probably a good idea to measure those results, too. It’s the same at the end of it all. The same content is displayed on the screen for the same family member. The top of the funnel is not where linear results are measured.
Q. What is the practical answer to this question?
AIn practice, it is usually different parties or agencies that are involved. As you may know, digital agencies have been working on display and banner advertising and online video purchases for our brands for many years. We also had a TV agency working on linear purchases. It’s true that it’s the exact same creative but, when converted into a pre-roll of 30 seconds, it is sent to the digital agency. It used to be that a 30-second broadcast spot would go straight to the TV agency. But this is changing.
Who owns CTV budgets is the next big question. Who owns the budgets for CTV? It’s TV but it’s also digital. The TV industry has gotten a lot more. This is going to end and there won’t be TV and digital agencies anymore, just media agencies that have to work cross-channel.
A: Your theory is clear enough for me to understand. Will something so direct and clear survive a Hollywood negotiations?
A :Yeah. I’m not going to claim any expert insights into the actual negotiation room or how the legal drama is likely to play out. We don’t have any idea about that part. As we say, we just take a ‘team-brand’ approach. We know that the brand advertising paid for all the films, TV shows, and music we enjoy. This is why we are always thinking about it.
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