TV

Advertisers Get Up Front About Upfronts

The pandemic rocked the entire TV ad industry, and advertisers want their future upfront contracts with networks to reflect that shift.

• Some agencies are lobbying for networks to write a “pandemic clause” into contracts that would release advertisers from their original upfront commitments in the event of a pandemic. 
• But because it isn’t clear exactly what would trigger this clause, networks aren’t thrilled about the idea.

Looking ahead: “Upfront commitments will generally be more flexible [...] than in past years, with more generous cancelation options,” Eric Haggstrom, eMarketer forecasting analyst at Insider Intelligence, told Marketing Brew. 

What a whirlwind

The numbers don’t lie—the value of a TV upfront deal can change dramatically between the time a contract is signed and when the ads actually run. We learned that lesson in the spring, when the absence of live sportsball made once-coveted ad slots almost worthless overnight.

With that uncertainty top of mind, advertisers now have some (understandable) commitment issues:

• For instance, one media agency exec told Digiday that “Fox was probably 85% sold in the Super Bowl at this time last year.” 
• Mars Wrigley is the only advertiser to sign on for a Super Bowl LV spot thus far. 

Yoga class

In comparison to rigid upfront deals that don’t yet come with a pandemic clause, advertising on more flexible digital platforms like Hulu is less risky. Plus, digital video viewership is surging while linear TV continues its decline. 

What that means: “Ad budgets will continue to shift from linear to OTT. Upfront deals will have a larger share of digital inventory bundled in, and TV networks with large digital properties like Disney's Hulu or ViacomCBS's Pluto TV will be able to take advantage of shifting viewer habits,” Haggstrom said.

Bottom line: The pandemic exposed the huge downside risk of upfront ad commitments—the main way TV ad inventory is sold. Unless a solution like a pandemic clause comes into play or live, in-person programs return with certainty, networks could see more advertisers stick to digital alternatives.

DIGITAL

AT&T Sells Sells Sells

AT&T is Marie Kondo-ing its non-core holdings to reduce its debt, which could include its digital ad unit Xandr. 

When I heard last week that the conglomerate was trying to sell DirecTV (again), I nodded along. The Xandr news, on the other hand, took me by surprise. Here’s why:

Chaos might ensue: Xandr tech is already baked into how AT&T sells its ad space, even in regard to upfronts (which, as we all know, are already chaotic enough).

History: AT&T spent a lot of time and effort getting Xandr to that point. 

• AT&T bought AppNexus, which operates one of the largest online ad exchanges in the world, just before launching Xandr in 2018. 
• The $1.6 billion ad exchange + TV ad space complete with AT&T data on wireless subscribers = Xandr, which seemed like a brilliant idea. 

Big picture: Although Xandr wasn't an overnight superstar (digital advertising is a tough game with the likes of Facebook and Google as competitors), the digital ad unit had been portrayed as integral to the company’s future...until now.

SPONSORED BY VIDEOASK

Just Face It

We may not have the graphs and charts ready just yet, but we all know it’s true: in-person face-to-face interaction has plummeted over the past few months. 

You heard it here first.

Fortunately for everyone’s face—and your business—there’s VideoAsk. 

VideoAsk’s technology solves the problem around scaling personalized, face-to-face communication with your audience. 

Whether it’s greeting people on your website, qualifying new leads, or requesting feedback, VideoAsk enables personalized conversations that drive the kind of meaningful engagement you simply can’t get from automated emails or chatbots.

Let’s face it: Business relationships are built stronger when they're done face-to-face.

Try VideoAsk today.

CAMPAIGNS

Fly Me To the Zoom

Coors Light wants to send you on vacation to a place you’re already very familiar with—your Zoom background. 

A logical plan

Consumers have Zoom on the brain. The online meeting platform’s revenue increased by 355% annually in Q2. 

And recent Pinterest search trends prove Americans are almost as excited about travel as they are about virtual happy hour. In June, Pinterest searches for “vacation spots” surged 260% year over year (YoY), and searches for “airplane essentials” jumped 170+% YoY. 

The beer company worked with DDB on a new ad called “What a Beautiful Day” (which extends its Made to Chill millennial branding campaign) to promote the giveaway. 

• The spot will run from August 27 through October 1. 
• Five winners can redeem their trips through June 2022, because it’s hard to imagine getting a free flight from a beer company (that isn’t a tasting array) immediately. 

My takeaway: Coors Light’s latest campaign feels like a hard pivot away from the popular “drink at home” messaging we saw from alcohol brands this past spring—and it’s only because Coors did its homework on consumer interests.

WHAT ELSE IS BREWING

• TikTok’s sale took a stutter step after questions arose about whether the app’s algorithms would be included in the sale due to China’s new export restrictions. 
• Pinterest hired Tyi McCray as its Global Head of Inclusion and Diversity after the company recently faced allegations of workplace sexism and racism.
• Ben & Jerry’s is starting a podcast about white supremacy, because every brand is a media brand now. 
• Facebook’s VP of marketing partnerships resigned last week after eleven years.
• Facebook also sponsored a digital OOH campaign for small businesses starting last week.

SPONSORED BY INBOUND

The future of business as told by the stars. Nope, this has nothing to do with you being a Leo. INBOUND2020 is an immersive and interactive digital experience featuring industry thought leaders like Bob Iger, Van Jones, Chrissy Teigen, John Legend, and more. Tune in September 22 and 23 to hear how these big shots are thinking about the future of business and your career. Get your free Starter Pass today.

ADWEEK OR ADWEAK?

Which headlines are real marketing news, and which one is from marketing satire Twitter account @ADWEAK? 

1. “Incogmeato: Kellogg’s Hopes Instagram-Famous Barnyard Animals Will Convince You to Try Its Faux Meat”
2. “More Clients Extending Payment To Freelancers From ‘Net 30’ To ‘Net Whenever We Feel Like It”
3. “Amazon Rivals Apple Watch With New $100 Mood Ring Wellness Wearable”
4. “White Guy Sport Fishing Hooks Millions As New Pandemic Pastime”

Keep scrolling for the answer.

METRICS & MEDIA

Stat: A Socialinsider study of 22+ million Instagram posts found that carousels are the number one most engaging type of post. 

Quote: “Adcolor cannot change an industry, neither can 600 & Rising, nor can Time’s Up. They can shed light on [issues], but the change has to start with the people who run these companies.” —One D&I exec to Ad Age on why ad industry activism isn’t working.

Watch: My conversation with Morning Brew CEO Alex Lieberman on his CMO Series, in which we answered all your burning questions about Marketing Brew. I talked about you a lot, too!

ADWEEK OR ADWEAK? ANSWER

B. is the @ADWEAK headline, but some freelancers might say otherwise.

ICYMI

Catch up on the top Marketing Brew stories from the last few editions.

• Everlane is looking for a new CMO after a rough summer for the fashion brand
• Uber's recent antiracism campaign generated criticism from activists—here’s why
• Away’s most recent OOH campaign includes scented posters for pets