Media buyers criticise Netflix’s ad-tier prices
On the 3rd of November, Netflix released its Ad-tier system to the UK. The prices have sparked surprise among media agency figures after Netflix said it would charge £50 per thousand viewers (CPM) to advertise. On top of this CPM, Netflix asks agencies to commit to spending at least £5m for a client to get their ad in the first place. As a point of comparison, broadcast video-on-demand services such as ITV Hub and ALL4 cost around £30 CPM, and Amazon Prime around £20.
Why is this important?
One media adviser stated that it was “aggressive” on Netflix’s behalf, due to the lack of data Netflix had provided agencies with. This hefty price tag means there is now a huge lack in targeting opportunities as these prices are on a similar level to cinema prices. One buyer added that it was a “little naïve” for Netflix to enter the advertising sphere with such limited data for agencies to use. They said: “There is obviously a huge wealth of data in terms of their consumers and their subscribers, but it doesn't appear that at this moment in time they are letting advertisers be really forensic in terms of audience and demographic targeting.”
Key trends for Google advertisers during the Performance Max transition
Prior to Google automatically transitioning Smart Shopping campaigns to Pmax campaigns in July 2022 about three in four clients running Google Shopping ads were using Smart Shopping campaigns and just 20% were using Performance Max campaigns. By the end of August, two-thirds of Smart Shopping advertisers had completely transitioned to PMax campaigns. As more and more traffic flowed to PMax campaigns over July and August, it was remarkable how similarly PMax’s share of total PMax and Smart Shopping clicks and conversions trended.
Why is this important?
Google has been able to transition brands to a new model that will allow them to bring greater automation to ads across search and other properties going forward. Therefore, they can increment more when the stakes are lower.
LinkedIn launches new ‘Brand Safety Hub’ to manage Audience Network placements
LinkedIn aims to improve brand safety on its platform, by launching a Brand Safety hub for its Audience Network. This will enable advertisers to discover more information about LinkedIn’s wider partner platforms and to create ‘allow and block’ lists.
Why is this important?
Brand safety is extremely important, this hub is a sign that LinkedIn is taking strides in the right direction. The new Brad Safety hub provides direct control over wider partner placements. Brands will feel more comfortable putting their trust in LinkedIn and have more options when they do.
Campaign of the Week: McDonald's launches global World Cup 2022 ad campaign
McDonald's has launched the brand's largest global campaign to date, across more than 75 of its markets for the 2022 FIFA World Cup. The ad plays on everyone uniting across the world for their love of McDonald’s and football. Created by agency Wieden+Kennedy, N.Y., the ad features ten languages, as well as four dialects and was shot in four different locations around the world. The spot also features multiple celebrities including actor Jason Sudeikis, TikTok user Khaby Lame, K-Pop group ITZY and Twitch streamer Edwin Castro.
The work is also supported by several activations around the world. Canada is in the World Cup for the first time in 36 years, so McDonald’s will offer promotional codes for every time there is a red or yellow card in the game. This also includes the Middle East where fans can receive free fries if they take a picture of a red card and draw fries on it. The UK arm is also partnering with food poverty charity FareShare to ensure every meal delivered during the tournament is matched with a meal for a family in need.
