Netflix | April 20, 2022
Netflix finally considers supporting ads on its streaming services. Recently Netflix has suffered the loss of 200,000 subscribers in the first quarter. At the end of the first quarter, the streaming service provider reported 221Million global subscribers with depreciation of 200,000 and missed it's projected 2.5 Million net add. The speculations say that the dip in subscribers is due to the recent price hike by Netflix in Jan 2022.
On the Earnings call, Netflix Co-Founder, Chairman, President & Co-CEO Reed Hastings said although he is fond of the simpler subscription model that the legacy customers of Netflix are accustomed to, he is considering offering customers cheaper options by allowing ads.
Netflix Co-Founder, Chairman, President & Co-CEO Reed Hastings said, "….And one way to increase the price spread is advertising on low-end plans and to have lower prices with advertising. And those who have followed Netflix know that I've been against the complexity of advertising and a big fan of the simplicity of subscription."
In his words, "….And one way to increase the price spread is advertising on low-end plans and to have lower prices with advertising. And those who have followed Netflix know that I've been against the complexity of advertising and a big fan of the simplicity of subscription."
He further adds, "But as much I'm a fan of that, I'm a bigger fan of consumer choice. And allowing consumers who would like to have a lower price and are advertising-tolerant get what they want makes a lot of sense. So that's something we're looking at now. We're trying to figure out over the next year or 2. But think of us as quite open to offering even lower prices with advertising as a consumer choice."
There was no indication of when or how advertising will be phased in. However, considering recent development, the comments prove their significance. Netflix disclosed not only a subscriber shortfall but also its first global subscriber decrease since 2011. It partly criticized competition, raising concerns about the congested sector more forcefully than before. Netflix currently has 221.6 Million paying customers and still is the leader in its segment; however, the current loss of subscribers points toward its limited options. While discussing the accommodation of ads, Hastings said,"And in terms of the profit potential, definitely, the online ad market has advanced. And now, you don't have to incorporate all the information about people that you used to. So we can be a straight publisher and have other people do all of the fancy ad-matching and integrate all the data about people. So we can stay out of that and really be focused on our members creating that great experience and then again, getting monetized in a first-class way by a range of different companies who offer that service."
Zappi | July 16, 2021
Zappi, the ad and innovation testing platform built by brands for brands, has announced the release of Zappi Amplify TV, a game-changing tool in advertising insights. Zappi Amplify TV, developed and validated by leading global brands like PepsiCo and Johnsonville, offers a new method to TV advertising designed to empower brands to predict how their commercials will succeed in today's media environment. The Zappi Amplify Ad System is the first in a series of advertising pre-testing systems.
Advertisers need to accurately predict the effect of their advertisements before they go live to optimize their return on investment, and they must make any necessary optimizations to guarantee they take the best versions to market. And, because advertising can generate both short-term sales and long-term brand equity, companies can predict the effect of an ad on both.
Zappi's ad testing method combines the best traditional ad testing approaches with novel approaches to providing a reliable prediction of ad impact on sales and brand equity. Instead of "black box" IP and complex analytical frameworks, Zappi Amplify TV focuses on transparency, consistency, and actionability of outputs to provide more accurate in-market ROI predictions that are 70% faster than traditional rivals.
Brands can use Zappi Amplify TV to:
Upgrade their ad research for the modern world: Advertising can stand out in a world that is getting noisier. Existing research methods are a fine place to start, but Zappi's Amplify methodology expands on the best of existing approaches to assist companies in landing advertisements in today's landscape.
Predict advertising ROI more accurately: Zappi has tested over 2,000 advertisements from some of the world's largest brands. As a result, the Amplify TV approach predicted in-market advertising ROI substantially better than legacy models from Kantar and Ipsos.
Move fast without compromising depth or affordability: Brands need responses quickly and cost-effectively to test their ads as many times as necessary to nail it.
Within the next few months, a set of solutions built on the same Amplify methodology will be released to assist brands in testing their digital advertisements and storyboards.
Zappi is an ad and innovation testing platform built by brands for brands. Your insights become more valuable when you test and learn on Zappi's single platform, which was co-created with some of the market's biggest consumer brands.
AD TECH AND MARTECH
Crunchbase | June 11, 2021
Apple’s recent privacy changes will not spell the end for adtech companies, but will force companies in the industry to rely on new tech and innovation as users demand more privacy.
The changes — as many people have seen on the commercials and the pop ups on their phones — went into effect less than two months ago and allow users to opt out of ID for Advertisers, or IDFA as they are commonly called. Those IDFAs allow advertisers to track iOS users’ activity across apps to better target ads and measure the effectiveness of their campaigns.
Those new rules also do not appear to be going away. Earlier this week during its annual Worldwide Developers Conference, Apple said its upcoming iOS 15 update will give iPhone users even more control over their privacy and see more detail about where their data is going. Users of the new iOS will be able to see who their apps are sharing data with and keep internet activity more private.
Those enhancements to user privacy will affect an advertising market that saw more than $2.7 billion in venture invested globally in it last year and is already at $3.2 billion this year, according to Crunchbase numbers. Mobile advertising specifically only makes up a small fraction of those dollars — with about $278 million in venture coming in last year.
“Apple’s moves should send a signal to startups that they should take privacy issues seriously at an early stage,” said Christine Tsai, CEO and founding partner at 500 Startups and an investor in adtech.
“They’re less costly to implement while companies are still young, which is what we’re encouraging our startups to do as part of our (environmental, social and governance) initiative,” said Tsai, who was part of the original technical support team that helped launch Google AdSense.