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Future of TV Briefing: Demand-side platforms stand to play a more important role in the ad-supported streaming market

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Future of TV Briefing: Demand-side platforms stand to play a more important role in the ad-supported streaming market

This week’s Future of TV Briefing looks at Samsung’s pitch for advertisers to run their upfront deals through its demand-side platform and the potential for other streaming ad sellers to follow suit.

Demand on the side of the platforms

The key hits:

  • Samsung wants advertisers to use its DSP to manage their upfront deals with TV networks.
  • The proposal highlights the central role of DSPs to the streaming ad market.
  • While managing upfront deals through a platform’s DSP could address advertisers’ reach and frequency frustrations, it also raises questions of potential conflicts.

Of all the battlegrounds in the ad-supported streaming war, the front featuring demand-side platforms may be among the most under-the-radar — and potentially among the most impactful. Given that programmatic will play an increasingly important part in the streaming side of this year’s upfront negotiations, the DSP as advertisers’ programmatic buying tool stands to take on an even more critical role in the streaming ad market. 

Connected TV platform owner Samsung seems to recognize the DSP’s rising central role, as evinced by its NewFront presentation last week. The company proposed advertisers use Samsung’s DSP to manage their traditional TV upfront buys when ads are running on Samsung’s CTV platform. The CTV platform owner was effectively saying to advertisers, “Do your deals with the TV networks, and then let our ad buying tool manage — and, crucially, monitor — the execution of those deals and let you know how they performed.”

The pitch makes sense on paper and underscores the underlying reason for DSPs’ importance in the ad-supported streaming market. Advertisers and their agencies are regularly grousing about the challenge of managing their streaming campaigns’ reach and frequency, and the enlistment of the CTV platform’s DSP would enable advertisers to take into account not only the ads purchased through the DSP but also the ads purchased directly from TV networks as part of advertisers’ and agencies’ upfront deals. 

“If you’re an advertiser that has upfront or committed spend, the ability to manage them in one platform is going to be attractive to your in-house teams or your agency teams, and the ability to manage things like reach and frequency holistically and hopefully to measure things holistically are definitely good benefits,” said Kevin Cahn, associate vp of the video center of excellence at marketing services consultancy Kepler Group.

However, Samsung’s pitch also positions the DSP as a potential Trojan horse. Samsung is not an impartial party. The company sells ads across its free, ad-supported streaming TV service and third-party streaming services on its CTV platform and competes for advertisers’ budgets against TV networks and streaming services. An advertiser opening the scope of its upfront deals to Samsung’s DSP would enable the DSP to judge the efficacy of those upfront deals because the DSP will be able to track reach and frequency and sell advertisers on inventory to target unreached audiences. Theoretically, the DSP would be objective in their tracking and recommendations, but some ad buyers are wary of the potential for DSPs owned by streaming ad sellers to direct ad dollars to the sellers’ own inventory.

To be clear, the latter concern does not only apply to Samsung’s DSP. It applies to any DSP that is owned by a streaming ad seller. That especially includes Amazon’s DSP, which allows advertisers to use Amazon’s shopper data to buy ads on the e-commerce giant’s CTV platform; Google’s Display & Video 360 DSP, which has been the exclusive DSP with access to YouTube’s inventory; and Roku’s OneView DSP, which has exclusive access to Roku’s FAST service The Roku Channel as well as the platform’s proprietary audience data. 

“If Roku is managing all of that and they’re managing the distribution and they’re managing it through their own algorithm, what’s to say they’re going to change it and make it favor themselves?” said Scott Marsden, evp, media & analytics and vp, data & analytics at ad agency Quigley-Simpson, during an on-stage session at the Digiday Programmatic Marketing Summit on May 4.

“They want you to do all the dirty work on their platforms,” said an agency executive of Amazon, Samsung, Roku and Google/YouTube. “They know it’s not just monitoring but management we want. Another thing to consider: Are we going the agnostic route in working with a DSP like The Trade Desk that is not tied to media or go with [Roku’s DSP] OneView or Amazon’s DSP or [Google’s DSP] DV360? And if we go with one of those, then what challenges lie ahead in terms of a one-stop full understanding of frequency and reach?”

As the agency executive alluded, another consideration for advertisers is that, while plugging their upfront deals into CTV platform-specific DSPs can help to manage reach and frequency on those respective platforms, it limits their ability to manage reach and frequency across various CTV platforms.

Conversely, however, there are plenty of reasons for advertisers to be using the platforms’ DSPs, at least in tandem with an independent DSP. The platforms’ DSPs are able to tap into the platforms’ proprietary first-party data, which can include the viewing data collected via automatic content recognition technology built into smart TVs. Additionally, the platforms typically give their own DSPs exclusive access to the platforms’ owned-and-operated inventory. 

“The walls are going to be there for some time, specifically as long as each platform’s data and O&O inventory is made exclusive to that specific platform,” Cahn said.

So the question is not whether advertisers will choose between the platforms’ DSPs and independent DSPs. For now, advertisers are continuing to support both in tandem. Instead, the question is what role will DSPs play in this year’s upfront negotiations.

What we’ve heard

“Are we at the point where I believe you can create a breakout [free, ad-supported streaming TV] channel? Not just content that people watch but truly create a destination out of a FAST channel? I don’t know if anyone has tried that yet.”

Streaming executive

Trend watch: Cord-cutting in Q1 2022

The first quarter of the year is typically high time for people to cancel their pay-TV subscriptions, especially once football season wraps up. Q1 2022 seems to have been no different in that respect. However, after the pace of cord-cutting slowed during the pandemic, it appears to have ramped up again.

In Q1 2021, pay-TV services combined to lose an estimated 1.4 million subscribers, per Variety. In Q1 2022, a sample of six pay-TV services surpassed that amount, and that sample does not include major pay-TV providers DirecTV, Hulu + Live TV and YouTube TV.

  • Dish Network: Lost 462,000 subscribers
  • Comcast: Lost 512,000 subscribers
  • Charter: Lost 123,000 subscribers
  • Altice: Lost 74,000 subscribers
  • Sling TV: Lost 240,000 subscribers
  • FuboTV: Lost 74,000 subscribers

As streaming pay-TV providers, Sling TV’s and FuboTV’s subscriber losses seem particularly notable. Streaming pay-TV services were supposed catch at least some of the traditional pay-TV subscribers cutting the cord, and they have. However, as MoffettNathanson senior analyst Craig Moffett identified, Sling TV’s subscriber base has now shrunk to the size it was in 2017. 

The view of the streaming pay-TV market should be further clarified on Wednesday after Disney reports earnings and shares whether Hulu’s base of 4.3 million streaming pay-TV subscribers, as of Jan. 1, grew or shrunk.

Numbers to know

38%: Percentage share of TV episodes in the 2020-21 season that were directed by women.

9.5 million: Number of streaming subscribers that AMC Networks had at the end of the first quarter of 2022.

-13%: Expected percentage decline in smart TV shipments in 2022 compared to 2021.

>$1 billion: How much money sports streamer DAZN reportedly lost in 2021.

What we’ve covered

The ANA’s cross-media measurement effort is taking too long, say agencies:

  • The ANA is nearly a year into its three-year effort to create a cohesive cross-media measurement blueprint.
  • Some agency executives are frustrated with the pace of progress, while others are concerned about conflicts of interest.

Read more about the ANA’s cross-media measurement effort here.

As working with creators is normalized, marketers tweak how they approach doing so:

  • Most major brands are working with creators in some fashion these days.
  • Brands are trying to get away from viewing creators as media channels.

Read more about marketers’ approaches to creators here.

TV networks, streamers concentrate on content categories on NewFronts Day 4:

  • On the final day of NewFronts, TV networks, streaming services and digital video publishers pitched new ad-supported programming and streaming properties.
  • A pair of measurement providers also took the stage, with one looking to sell more than measurement.

Read more about NewFronts Day 4 here.

Media companies and social platforms tout their connections to diverse communities on NewFronts Day 3:

  • Social platforms and Black-owned publishers took the stage to urge ad buyers to spend more money to reach diverse audiences.
  • TikTok announced its first ad revenue share program for creators.

Read more about NewFronts Day 3 here.

Why Twitch signaled a recommitment to creators at IAB NewFronts:

  • The Amazon-owned platform has struggled to keep some of its high-profile creators as engaged and active as they once were.
  • A new Twitch program called “For Twitch, With Twitch” features creator-driven content curated specifically for advertisers.

Read more about Twitch here.

What we’re reading

Netflix eyes Q4 for ad-supported push:

Netflix CEO Reed Hastings may have said the subscription-based streamer is trying to figure out adding an ad-supported tier “over the next year or two,” but the company has told employees it’s looking to launch its ad business in the fourth quarter of this year, according to The New York Times.

Streaming’s financial tipping point:

Netflix’s subscriber growth struggles have thrown into sharp relief the challenging economics of the subscription-based streaming business and raise the question of what other revenue sources — such as selling shows to traditional TV — are these streamers willing to tap, according to the Los Angeles Times.

FAST focus:

The streaming subscriber growth slowdown has opened a window for free, ad-supported streaming TV services to seize audiences’ attention, and they seem to be trying to seize the opportunity, according to Vulture.

Hollywood’s masks come off:

Film and TV studios and unions have agreed to update the COVID protocols for productions and allow cast and crew members to work without masks, according to Variety.

The company cornering the kids’ market:

Moonbug Entertainment — the company behind kids’ programming phenom “CoComelon” — takes a very analytics-driven, “Moneybag”-esque approach to the programs it produces, according to The New York Times.

Trade orgs appraise measurement currencies:

The Association of National Advertisers, the American Association of Advertising Agencies and the Coalition for Innovative Media Measurement are teaming up to assess the measurement providers seeking to serve as the currency on which TV ad deals are based, according to Broadcasting & Cable.

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AMD CEO says 5-nm Zen 4 processors coming this fall

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Did you miss a session from GamesBeat Summit 2022? All sessions are available to stream now. Watch now.


Advanced Micro Devices revealed its 5-nanometer Zen 4 processor architecture today at the Computex 2022 event in Taiwan.

The new AMD Ryzen 7000 Series desktop processors with Zen 4 cores will be coming this fall, said Lisa Su, CEO of AMD, in a keynote speech.

Su said the new processors with Zen 4 architecture will deliver a significant increase in performance upon their launch in the fall of 2022. Additionally, Su highlighted the strong growth and momentum for AMD in the mobile market as 70 of the more than 200 expected ultrathin, gaming and commercial notebook designs powered by Ryzen 6000 Series processors have been launched or announced to-date.

In addition, other AMD executives announced the newest addition to the Ryzen Mobile lineup, “Mendocino;” the newest AMD smart technology, SmartAccess Storage; and more details of the new AM5 platform, including support from leading motherboard manufacturers.

“At Computex 2022 we highlighted growing adoption of AMD in ultrathin, gaming, and commercial notebooks from the leading PC providers based on the leadership performance and battery life of our Ryzen 6000 series mobile processors,” said Su. “With our upcoming AMD Ryzen 7000 Series desktop processors, we will bring even more leadership to the desktop market with our next-generation 5-nm Zen 4 architecture and provide an unparalleled, high-

performance computing experience for gamers and creators.”

AMD Ryzen 7000 Series desktop processors

The new Ryzen 7000 Series desktop processors will double the amount of L2 cache per core, feature higher clock speeds, and are projected to provide greater than 15% uplift in single-thread performance versus the prior generation, for a better desktop PC experience.

During the keynote, a pre-production Ryzen 7000 Series desktop processor was demonstrated running at 5.5 GHz clock speed throughout AAA game play. The same processor was also demonstrated performing more than 30% faster than an Intel Core i9 12900K in a Blender multi-threaded rendering workload.

In addition to new “Zen 4” compute dies, the Ryzen 7000 series features an all-new 6nm I/O die. The new I/O die includes AMD RDNA 2-based graphics engine, a new low-power architecture adopted from AMD Ryzen mobile processors, support for the latest memory and connectivity technologies like DDR5 and PCI Express 5.0, and support for up to four displays.

AMD Socket AM5 Platform

The new AMD Socket AM5 platform provides advanced connectivity for our most demanding enthusiasts. This new socket features a 1718-pin LGA design with support for up to 170W TDP processors, dual-channel DDR5 memory, and new SVI3 power infrastructure for leading all-core performance with our Ryzen 7000 Series processors. AMD Socket AM5 features the most PCIe 5.0 lanes in the industry with up to 24 lanes, making it our fastest, largest, and most expansive desktop platform with support for the next-generation and beyond class of storage and graphics cards.

And AMD said the “Mendocino” processors will offer great everyday performance and are expected to be priced from $400 to $700.

Featuring “Zen 2” cores and RDNA 2 architecture-based graphics, the processors are designed to deliver the best battery life and performance in the price band so users can get the most out of their laptop at an attractive price.

The first systems featuring the new “Mendocino” processors will be available from computer partners in Q4 2022.

GamesBeat’s creed when covering the game industry is “where passion meets business.” What does this mean? We want to tell you how the news matters to you — not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. Learn more about membership.

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AMD’s Ryzen 7000 desktop chips are coming this fall with 5nm Zen 4 cores

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AMD’s Ryzen 7000 desktop chips are coming this fall with 5nm Zen 4 cores

AMD’s upcoming Ryzen 7000 chips will mark another major milestone for the company: they’ll be the first desktop processors running 5 nanometer cores. During her Computex keynote presentation today, AMD CEO Lisa Su confirmed that Ryzen 7000 chips will launch this fall. Under the hood, they’ll feature dual 5nm Zen 4 cores, as well as a redesigned 6nm I/O core (which includes RDNA2 graphics, DDR5 and PCIe 5.0 controllers and a low-power architecture). Earlier this month, the company teased its plans for high-end “Dragon Range” Ryzen 7000 laptop chips, which are expected to launch in 2023.

Since this is just a Computex glimpse, AMD isn’t giving us many other details about the Ryzen 7000 yet. The company says it will offer a 15 percent performance jump in Cinebench’s single-threaded benchmark compared to the Ryzen 5950X. Still, it’d be more interesting to hear about multi-threaded performance, especially given the progress Intel has made with its 12th-gen CPUs. You can expect 1MB of L2 cache per core, as well as maximum boost speeds beyond 5GHz and better hardware acceleration for AI tasks.

AMD is also debuting Socket AM5 motherboards alongside its new flagship processor. The company is moving towards a 1718-pin LGA socket, but it will still support AM4 coolers. That’s a big deal if you’ve already invested a ton into your cooling setup. The new motherboards will offer up to 24 channels of PCIe 5.0 split across storage and graphics, up to 14 USB SuperSpeed ports running at 20 Gbps, and up to 4 HDMI 2.1 and DisplayPort 2 ports. You’ll find them in three different flavors: B650 for mainstream systems, X650 for enthusiasts who want PCIe 5.0 for storage and graphics and X650 Extreme for the most demanding folks.

Given that Intel still won’t have a 7nm desktop chip until next year (barring any additional delays), AMD seems poised to once again take the performance lead for another generation. But given just how well Intel’s hybrid process for its 12th-gen chips has worked out, it’ll be interesting to see how it plans to respond. If anything, it sure is nice to see genuine competition in the CPU space again.

While Ryzen 7000 will be AMD’s main focus for the rest of the year, the company is also throwing a bone to mainstream laptops in the fourth quarter with its upcoming 6nm “Mendocino” CPUs. They’ll sport four 6nm Zen 2 cores, as well as RDNA 2 graphics, making them ideal for systems priced between $399 and $699. Sure, that’s not much to get excited about, but even basic machines like Lenovo’s Ideapad 1 deserve decent performance. And for many office drones, it could mean having work-issued machines that finally don’t stink.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.

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Disney’s Disney+ ad pitch reflects how streaming ad prices set to rise in this year’s upfront

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Disney’s Disney+ ad pitch reflects how streaming ad prices set to rise in this year’s upfront

With Disney+, Disney is looking to set a new high-water mark for ad prices among the major ad-supported streamers. The pricey pitch is representative of a broader rising tide in streaming ad pricing in this year’s TV advertising upfront market, as Disney-owned Hulu, Amazon and even Fox’s Tubi are looking to press upfront advertisers to pay up.

In its initial pitch to advertisers and their agencies, Disney is seeking CPMs for Disney+ around $50, according to agency executives. That price point applies to broad-based targeting dubbed “P2+,” which refers to an audience of any viewer who is two years old or older (though Disney has told agency executives that programming aimed at viewers seven years old and younger will be excluded from carrying ads). In other words, more narrowly targeted ads are expected to cost more based on the level of targeting. A Disney spokesperson declined to comment.

At a $50 CPM, Disney+ is surpassing the prices that NBCUniversal’s Peacock  and Warner Bros. Discovery’s HBO Max sought in last year’s upfront market and that gave ad buyers sticker shock. The former sought CPMs in the $30 to $40 range, while the latter sought $40+ CPMs. By comparison, other major ad-supported streamers like Hulu, Discovery+ and Paramount+ were charging low-to-mid $20 CPMs that major ad-supported streamers charge. As a result, Peacock’s and HBO Max’s asks ended up being price prohibitive, with some advertisers limiting the amount of money they spent with the streamers because of their higher rates.

Unsurprisingly, agency executives are balking at Disney+’s price point. “They’re citing pricing that no longer exists, meaning Peacock and HBO Max recognized they came out too high and they’re reducing it. Disney+ is using earmuffs to pretend that second part didn’t happen,” said one agency executive.

However, Disney+ isn’t the only streamer seeking to raise the rates that ad buyers are accustomed to paying. Hulu is also seeking to increase its prices in this year’s upfront, with P2+ pricing going from a $20-$25 CPM average to averaging in the $25-$30 CPM range, according to agency executives. And during a call with reporters on May 16, Fox advertising sales president Marianne Gambelli said that the company will seek higher prices for its free, ad-supported streaming TV service Tubi in this year’s upfront market. It’s unclear what Tubi’s current rates are, but FAST services’ CPMS are typically in the low to mid teens, said the agency executives.

“We have to get the value for Tubi. Tubi has grown to a point — it’s doubled, tripled in size over the past couple of years. So we are going to obviously make that a priority and look for not only more volume but price,” Gambelli said.

Meanwhile, in pitching its Thursday Night Football package that will be streamed on Amazon Prime Video and Twitch, Amazon has been pressing for a premium on what Fox charged advertisers last year, according to agency executives. The e-commerce giant will be handling the games’ ad placements like traditional TV, meaning that it will run the same ad in each ad slot for every viewer as opposed to dynamically inserting targeted ads. “It’s streaming broadcast,” said a second agency executive.

An Amazon spokesperson declined to comment on pricing but did provide a general statement. “Thursday Night Football on Prime Video and Twitch is a purely digital broadcast, and we’re excited to bring fans a new viewing experience. There are 80MM active Prime Video households in the U.S. and, in a survey of our 2021 TNF audience, 38% reported they don’t have a pay-TV service – meaning TNF on Prime Video and Twitch enables brands to connect with cord-cutters and cord-nevers. Brands can also reach these viewers beyond TNF. Our first-party insights enable them to reengage TNF audiences across Amazon, such as in Freevee content.”

One of the agency executives that Digiday spoke to said the latest ask is for a plus-10% increase on Fox’s rates, though what Fox’s rates were are unclear and other agency executives said the premium that Amazon is asking for varies. Ad Age reported in February that Amazon was seeking up to 20% higher prices than Fox’s rates. “I don’t know if it is consistently plus-10, but it is definitely more. Which is crazy because Fox couldn’t make money on it, which is why they gave it up for this fall,” said a second agency executive.

“Someone was eating way too many gummies before they put the pricing together,” said a second agency executive of Amazon’s Thursday Night Football pitch.

Ad-supported streaming service owners also see an opportunity to push for higher prices as advertisers to adopt more advanced targeting with their streaming campaigns, such as by using the media companies’ and/or advertisers’ first-party data to aim their ads on the streamers. 

Said one TV network executive, “You’ll see premiums, especially as it relates to advertisers that really want to hook into [their company’s streaming service] and buy those targeted audiences across the platform and either use [the TV network’s] first-party data or bring their own data to the table. That’s the biggest business we’re in, and that’s where we see great growth from a pricing standpoint.”

https://digiday.com/?p=448869

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