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This Week's News: 2021/06/16

This Week's News: 2021/06/16

Hotspex Media Team

Digital Dominates Disney’s Upfronts; Facebook Users Plateau

TLDR
  • Disney’s ad sales team has wrapped up its upfront negotiations with double-digit CPM increases.
  • Facebook is losing younger audiences; both the 12-17- and the 18-24 demographics will decline through the next four years.
  • Digital's expected ad sales are expected to leap more than 20% to $419 billion and account for 64% of total ad sales
Brief

Disney CEO Bob Chapek said at a Credit Suisse conference, “Forty percent of our sales this year were actually in streaming and digital, which I think speaks to the nature of how this business is rapidly changing.” Disney was the third network giant to finalize its upfront bargaining process, following the CW and NBCUniversal, indicating rampant advertiser demand.

In contrast, Facebook isn't growing as it used to. Insider Intelligence released data projecting a sub-1% increase in US users this year, down from 3.3% last year and 1.9% in 2019. According to the researcher, the COVID pandemic “helped to push future accelerations forward, and as a result, Facebook will see slower user growth for the rest of our forecast period, which ends in 2025.”

Magna’s global advertising forecast projects record growth, with global advertising spending increasing by 14% to $657 billion, an all-time high. Meanwhile, GroupM forecasts even greater digits for global advertising revenue, which it said will jump 19% to $749 billion in 2021. Economic recovery in key industries that were hit hard by the pandemic, including auto, travel, entertainment, restaurants, and sports is driving that increase. 


Connected packaging will allow brands to become their own medium

TLDR
  • Connected Packaging, which will – in essence – allow brands to become their own medium.
  • Augmented Reality-linked to QR offers vast opportunities. 
  • The potential size of the market globally is estimated to reach some $31bn by 2027. 
Brief

The concept of using a product’s own packaging to allow a brand to connect directly with consumers is not only genuinely disruptive but timely and - obviously - sustainable. It has become possible partly because of the ubiquitous penetration of the mobile phone among consumers and partly due to the second coming of the once-derided QR code, previously dismissed as user-unfriendly. QR 1.0 required an accompanying app. QR 2.0 allows us to read codes via our phones’ cameras, transforming actions like ticketing. If both ticketing and testing prove the efficacy and ease of use of the medium, the marketing community will relish its creative opportunities, particularly via the marriage of QR and AR. The packaging of the future is a portable interactive poster. Connected packaging also throws up opportunities for new sponsorship creative – crucially, without the potential consumer irritant of the digital pop-up or over-intrusive placement. It offers in-store and at-home partnerships between retailers and brands, bringing the retail environment to the home. And it allows for shelving itself to become a medium, whether real or digital; revolutionizing Point of Sale.


As digital booms, ease often outweighs safety concerns

TLDR
  • A survey from IBM Security found that Canadians are prioritizing convenience over safety and security when creating new online accounts – with implications for themselves and brands.
  • With many users overlooking security concerns for the sake of convenience, the burden of security falls more heavily on the companies providing services across financial services, groceries, retail and restaurants, according to IBM.
Brief

The March study by Morning Consult found that preferences for convenience often outweighed security and privacy concerns among individuals surveyed – leading to poor choices around passwords and other cybersecurity behaviours. In Canada, the average person created five new online accounts during the pandemic with the most popular being shopping/retail, food services and video conferencing. More than a third of Canadians report giving up on an online purchase, application or transaction based on negative experiences signing up (41%), logging in (35%) or completing payment (34%). What’s more, 30% of respondents have never decided against downloading a new app or creating a new account due to concern over its security and privacy policies during the pandemic. Overall, 79% of Canadians trust financial institutions to protect their personal or sensitive information and 75% trust healthcare organizations. Meanwhile, less than 70% of Canadians trust shopping/retail, food service, large tech companies, entertainment and exercise and wellness companies – with trust lowest for social media companies, at 51%.

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