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Digital Digest March 25, 2020, R&R Partners

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Digital Digest March 25, 2020, R&R Partners 1 The Digital Digest March 25, 2020, R&R Partners Introduction We don’t need to download an app or wear a headset to experience the COVID-19 altered reality. Our daily lives and routines changed overnight, completely shifting how, when and where we consume media. TV is the shining star again as Americans are glued to their screens, waiting for the latest news between bingeing on shows. Digital is surging between telecommuting and scrolling through social feeds to feel less isolated during a time of social distancing. Meanwhile, streets and stores are barren and without commutes, few are listening to the radio or seeing billboards. Below reveals how channel consumption has modified since coronavirus entered our lives like a wrecking ball. Your marketing efforts should reflect these paramount shifts. COVID-19’s Impact on Media Consumption by Channel Data is being updated by the day and still not released by some platforms, but this is what we know so far: • TV: Traditional TV is center stage again. Nielsen estimates TV usage to rise nearly 60%. • CTV/OTT: Nielsen also found an average 61% increase in streaming video via the TV. Top apps used are Netflix, Amazon Prime and Hulu. Disney Plus is on the rise thanks to the early release of Frozen 2. • Digital: Everyone is spending more time online, both on desktop and mobile. Laptop/desktop usage increased by 40% and mobile increased by 53.3%* week over week. • Social Media: Social distancing grows social media with 46% increase* week over week. • Audio: No commute means 16%.6 of consumers are listening to less radio* than they were this time last week, and Spotify and Pandora are seeing global streams rise. • Out-of-home: Self-isolation also means that 35.4% of consumers are seeing less OOH* than they were this time last week. *Source: Colling Media Optimize Your Channels & Media Campaigns COVID-19 changed everything you knew about your audience behaviors. Now what? Quickly make shifts to remain in front of your audience through channel adjustments and bid optimizations. It is important to be vigilant in brand safety and monitoring so pivots and responses can be made in real time. 2 Channel Shift Suggestions: • TV: Viewership is increasing, but for how long? People are watching more TV since they're stuck at home, but they're missing out on live sports content, which, in turn, is forcing viewers to sample other programming. Networks are showing a +30% week-to- week increase in audiences for Prime programming because people are home more and the NBA, NCAA, NHL and MLB seasons have been postponed or canceled. The one sports bright spot is that the NFL has yet to announce any postponement, free agency is moving forward, and the Draft is still on schedule for April 23−25. Production of most late-night shows has been halted or are on a skeleton crew, and daytime programming is likely all new content to discover for the new work-from-home audience. Adjust daypart mixes to include more daytime in the next 30 days to capitalize on this new "home" audience. News continues to be a strong performer, but be wary of too much doom and gloom as ongoing news evolves. • CTV/OTT: If you haven’t already, shift budget into streaming video. The new work-from-home audience is more likely to start a new series on Netflix or Hulu than begin watching daytime TV series or soap opera. Reach sports fans through Hulu's latest curated sports fans PMP, which targets those who are avid sports viewers but are watching other shows now. Reevaluate your win rates and max bids to remain competitive in this space. You may want to adjust bids based on some notable floor-rate shifts as well: o Sling $24 à $20 o Discovery $20 à$14 o Tastemade $17 à$15 o VRV $18.75 à $17.75 o Turner $24 à $16 • Digital: Remove geo-fencing targeting (nobody is there). Increase investment in pre-roll/TrueView given the increased streaming that's also happening on desktop and mobile. Implement negative or sentiment block lists to ensure a brand-safe environment, especially with YouTube allowing creators to monetize videos about COVID-19. Increase vertical video inventory for mobile streaming. • Social Media: People are seeking free content to watch; adjust buys to serve in Facebook’s in-stream video, which includes Facebook Watch’s original series. • Audio: Reduce budget in radio and increase it in streaming audio such as podcasts and music. Similar to bingeing on TV shows, consumers are also catching up on all their favorite podcasts. • OOH: Reduce budget in OOH and reinvest in above options. If that isn’t possible, then extend buys to when society is back to normal. For additional considerations and pivots to make to your marketing plans, read R&R’s COVID-19 Insights. 3 Buzzword: OTT vs. CTV • OTT: stands for “over the top,” which is video content that is served to viewers over the traditional closed television system. With OTT, users don’t need to subscribe or pay a cable or satellite company to watch video content since the majority of content is served via the internet. • CTV: stands for “connected TV” and is any TV set used to stream video over the internet. These are most often videos that are streamed via apps that are downloaded. Devices include smart TV, gaming consoles and connected devices (e.g., Roku, Amazon Fire Stick Apple TV, etc.) Read more .
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