I decided to watch “The Resident” on Fox.com to analyze the advertising and to see if that can tell me anything about who Fox is trying to target. Since I am watching digitally, there are fewer commercials. There are five commercials in total. The first commercial at 12:10, but it skipped right through. At 20:53 I received the option to select one ad or multiple ads. First I watched a heartwarming commercial for Nationwide that felt family oriented. Next up was a Verizon commercial. Then a Hidden Valley Ranch “without ranch, pizza is naked” advertisement. Then a Royal Caribbean ad. I would then assume “The Resident” is trying to advertise to adults with families, which is why the 18-49 audience makes sense. Finally, Showtime showcased its original drama “Homeland”. I found this ad odd since Showtime is owned by CBS Corporation, not Fox. On the next commercial break I selected the “one ad” option. FoxNow asked me questions to make my ad experience more relevant by selecting my gender and age. It asked me about children, pets, housing, vehicles, entertainment, if I buy the latest technology and gadgets, if I travel, and if I want to watch ads in Spanish. I find it fascinating that the technology to target audiences and enhance the viewer ad experience exists.
Back again! World’s Funniest Fails continues to keep its ahead above water in the death slot, on Fridays @ 8pm. For a show that should have been off the air a while ago World’s Funniest Fails is making quite the statement as of late. Since February 13th, the total viewers have gone up every single week with the most recent viewing coming in at just under 3 million total. While the ratings have now been stuck at .8 for the last four weeks the show is definitely making progress. Fox has officially ordered EIGHT, yes you heard that right, eight! new episodes. From Variety, “WORLD’S FUNNIEST FAILS ranks No. 1 in its time period among Men 18-34 (tie), Teens (tie) and No. 2 among Adults 18-34 (tie) and has improved upon FOX’s prior season average in the time period with entertainment programming in Adults 18-49 (+38%), Adults 18-34 (+60%), Teens (+50%) and Total Viewers (+45%).” Killing it! Hopefully Terry Crews and Co. can keep their momentum going through March into April and May. Stay tuned ! And don’t forget to check the show out, Fridays @ 8pm on FOX !
By Ali Zaslav
What’s Changed in TV Distribution?
In the television business, distribution is the key component in making content accessible and viewable by consumers on traditional and new platforms. Distribution is not only the way programming reaches audiences, but is a large component of programmers and distributors business models.
Traditionally TV distribution used to be much simpler; it was primarily through TV and consumed on the TV set. In this old media structure there were barriers to reaching consumers, (you would have to own a network or have a program carried by one). Today broadband allows for video content to be carried and viewed on the web. Countless individuals and companies can now reach viewers in new ways with all types of video content.
Television is still the primary way people consume video but new devices and new content are beginning to change consumers viewing behavior. Viewers can watch traditional TV or now have the option to aggregate their favorite videos through many new options like Netflix, Hulu, Amazon, or TV Everywhere and watch them on their TV, or a tablet, phone or computer. The rise of new platforms to distribute TV content through DVR and VOD plus online viewership has resulted in a number of exciting developments for programmers and distributors, as well as real threats and challenges.
Right now television content distribution can be broken down into three categories: traditional distributors, new challenging distributors, and programmers that try to take advantage of all avenues of distribution. Programmers now distribute through the traditional multi-channel operators (Time Warner), phone companies (Verizon & AT&T) and satellite distributors (like Dish and DirectTV) and new avenues like apps, TV Everywhere through a cable operator or digital offerings like Netflix.
Traditional Distributors in the TV Market
MSO’s, satellite, and phone companies are actively trying to delve into the growing market of cross platform viewing and video streaming. A recent development is TV Everywhere.
Comcast successfully released Xfinity on demand and struck deals with cable networks, broadcasters, and pay TV to stream their content online for Comcast subscribers. Applications like TV Everywhere are being released by a multitude of distributors, allowing consumers to stream their carried programming on any tablet, phone or computer. Time Warner now has TWC TV and Cablevision has TVtoGO. Phone companies also provide online streaming; Verizon streams FiOS TV and AT&T streams U-verse.
In February, DirectTV joined the online game and released DirectTV Everywhere. For traditional distributors, “TV Everywhere” has become an important part of their distribution model. But their applications have a lot of competition coming from Netflix, HuluPlus and Amazon which offer library’s of content and more recently original or exclusive programming.
Rising Challengers to Traditional Distributors
The development of broadband as a vehicle for video has spurred huge entrepreneurial investment in companies like Netflix, Apple, Amazon, Hulu, YouTube as well as user-generated content. Traditional distributors are being challenged by new online distribution channels like Netflix, Hulu, Amazon, Apple TV, and Google (YouTube). These distributors are offering very appealing services to consumers and at low costs (Netflix & HuluPlus: both $8 a month and Amazon Prime $79/ yearly), or in the case of the web, Google or YouTube for free (you only need to have broadband). In addition, there is easy access through many devices like the computer, Xbox, iPad, etc with a wide range of content. We know this is appealing to consumers since Netflix recently grew to almost 28 million subscribers.
For the past few years Netflix, Amazon and HuluPlus have provided old shows, almost like a library service. This year Netflix shook up its programming strategy when it released original content “House of Cards”. They did what no distributor or programmer has done before: presenting an entire television series “House of Cards” to subscribers upfront. The viewer can than choose to watch the show all at once or at their own pace instead of once a week. In some ways, this strategy makes Netflix a competitor to HBO and cable channels. It also has blurred the lines as to what kind of company Netflix is: a distributor or original programmer? Further following a similar lead, Amazon is now promoting that they have exclusive content that you can only find and watch on Amazon.
Cable channels like A&E, Discovery, History, Lifetime and many others have iPad applications. Disney offers “Watch” to stream ESPN and Disney Channel to computers and other devices . Recently on the broadcast side, broadcasters have been making more content available on their websites and through services like Hulu. Since broadcast don’t rely on sub fees they have been much more aggressive in moving their content to other platforms than cable. And just this month ABC and CBS both came out with tablet applications to stream their television series.
Distributors have been and must adapt to new technologies, platforms and consumer demands. Despite the buzz that cable and broadcast are “dying mediums,” the Neilson graph below shows that while online viewership is increasing, people are still consuming a large percent of content on the TV set.
The real measure of the success of TV distributors will be how well their offerings satisfy consumer interests in viewing content how and when they want too. If the traditional distributors don’t provide it, new companies like Netflix and Apple will meet that demand.
Programming has traditionally been made up of two dominant genres, the drama and the situational comedy (or sitcom). In a typical week’s prime time schedule, the major five broadcast networks (ABC, CBS, CW, Fox, and NBC) air a combined 43 hours of dramas and 18 hours of comedy. Another notable genre in the current schedule is reality and competition shows which currently make up 14 hours of the broadcast schedule. When looking into the broader scope of television, more and more genres begin to emerge. Currently on cable and premium networks, dramas and sitcoms also dominate the schedule but they are accompanied by more diverse programming such as mini-series, more reality, and developing genres such as mock reality. Schedules are constantly changing and adapting as new programs are developed and programs begin to come off the air. The development process is unique for each genre and the current season has already showed some success and failures.
The beginning of any drama series typically happens in one of three ways. Either a writer-producer meets with the network and a concept emerges which then turns into a script or a writer-producer already has a script and pitches it to the network. The third common way for a show to develop is for a highly regarded star to decide they want to do a television program and a team is assigned to develop something which fits their needs. Once a script is written and the network approves along with a cast and crew, a pilot is produced and shown to the network. How many pilots are commissioned is dependent upon the networks overall tone, for example The CW is unlikely to produce a large amount of comedy pilots since their schedule is dominated by dramas, along with their current needs. If not many dramas survive the season, more are likely to be commissioned for the next season.
In the current pilot season, Vulture magazine has already spotted several programming trends. One of which is franchise programming. Shows such as NCIS, The Vampire Diaries, and Chicago Fire all have related pilots being worked on. Going off of the success of Once Upon a Time, there is also a tendency towards magical or supernatural themed programs. Vulture predicts a rise in “House” type characters as well as many bigger name stars following Kevin Bacon back to the smaller screen. Much of this is based off of the successes of this past season and an effort to keep promising trends rolling.
One of the more successful launches this Spring was Fox’s The Following starring Kevin Bacon. The show has already been picked up for a second season and has been consistently winning it’s time slot.
A significant drama which went off the air this spring was The CW’s Gossip Girl. While not a major player in the ratings, Gossip Girl was still influential in it’s run on the CW as a trend setter for other programming. The network saw an uptick in the amount of programs focusing on the glamorous and elite such as 90210 and this season’s The Carrie Diaries.
Cable networks typically are more adventurous in their programming and have been seeing a lot of success lately.
Among the biggest successes is AMC’s The Walking Dead. It is a slightly nontraditional show that has garnered huge ratings for the cable network. It was a major Sunday night competitor this season despite not being on a major broadcast network.
Another major program this spring was The History Channel’s mini series The Bible. It received a lot of attention for it’s content and created a viewing war with The Walking Dead.
Comedies are developed in a very similar way to dramas. Typically more comedy pilots are produced each year because they are shorter and quicker to make. However, more concepts are abandoned and there are different standards for determining what shows get picked up. A comedy will rarely be picked up just because it’s funny. Comedies are evaluated more based on the current schedule and where there are holes. If a current show is going off the air or needs a stronger lead in, then a comedy has a stronger chance of making it to air. There is also a different target demographic for comedies. They are intended to appeal to younger, typically less educated, and lower income than other types of programming.
NBC had a much hyped new series in 1600 Penn which was given an early release of the pilot. The show did not hold an audience well and saw continually declining ratings. NBC chose to end the season early by airing multiple episodes in a night. The scheduling change combined with declining ratings led to cancellation rumors.
A more successful show this spring has been ABC’s How to Live With Your Parents For The Rest of Your Life. It had a late premiere date but has still seen favorable ratings. It focuses on a single mom having to move back in with her parents and the struggles that ensue from her eccentric family.
This season will see the end of the long running NBC comedy The Office. The show was a hit for the network for many years and led to similar programs such as Parks and Recreation which is still on air. Show Runner Greg Daniels promises a heartfelt goodbye to match the series all around tone and characters.
There are four general rules that define reality television. The first is that they do not involve actors, at least in the traditional sense. Second, while they may be planned, they are not written in the way that comedies and dramas are. They are always produced on location, and finally they have some sort of special gimmick. When in development, these programs are judged more on the potential of the idea than the reputations of the writers or performers. Reality television has created a place for itself in the schedule over the past few decades. It is especially prominent on cable networks with networks such as E! and Bravo airing almost exclusively reality in their prime time slots. Bravo recently announced they have 17 new series being planned, nearly all of which are reality.
On broadcast networks, it is most common to see reality programming in the form of competition. The Voice saw a cast change this spring with Shakira and Usher replacing Christina Aguilera and Cee Lo Green as judges. The show has been seeing decent numbers with the new judges.
Reality is clearly a genre which is here to stay. Over the years, reality programming has reached to some pretty extreme levels as far as the types of stories and characters that are put on the air. This has led to a new trend of mock realities, shows which are meant to look like reality shows but are scripted or improv and actually make fun of reality programming.
E! has an hour every week titled “Mock Block Monday” which features two of these Mock Reality Shows. The first is Burning Love which is an imitation of dating shows such as The Bachelor. The second is After Lately which is a supposed documentary of the office of Chelsea Lately, another popular program of theirs.
Other networks are picking up on this trend as well. MTV recently announced a new show, appropriately called Reality Stars, which will be about four friends who get involved in reality television. BET has committed to a second season of The Real Husbands of Hollywood. The show follows men of Hollywood in their “natural environment”.
Nielsen announced earlier this winter that it plans to begin using Twitter to measure program popularity. This focus on the “second screen” could give more insight into what viewers are responding too and begin to dictate programming decisions. It can help programmers adapt to the growing social engagement of viewers and use social media trends to their advantage.
19. The Business of Television, Bleumenthol & Goodenough
by Merin Pasternak
Stephen White, Founder and Chairman, EMM International, a global media management performance and auditing consultancy, says it best, “Audience behaviour is vastly more complex and variable than before and audience measurement technology is like the quest for renewable clean energy.” We have always seen that old is replaced by new technologies. First there were paper diaries that were replaced by electronic versions such as Computer Assisted Telephone Interviewing and people meters, and then followed Audience Establishment Survey that could determine size and composition of a large sample audience. It was predicted that online and social would be able to one day measure themselves. However, there have been some problems with this theory as page visits and Ad hits are not black and white, measurement systems are not always compatible, and there has never been a metric system that could seamlessly integrate TV, online and mobile.
Overview of Current Environment
Today’s media environment has drastically fragmented and is ever changing, from the once limited selection of TV channels. Companies must identify the factors that impact average media consumers. There are three forces in particular that must be quantified:
- New sources of information: always update sources as new data forms we have not yet seen will continue to emerge.
- New forms of media: brings social websites into view as having social ads, as the line between content and advertising are blurred.
- New screens: Conventional examples include theTV,Laptop, and even Mobile, but the tablet experience is new to us. There are already discussions about Google lass – augmented reality coming soon as an additional fifth screen that will require a separate strategy. 
Multi-Screen Measurement System
On October 16, 2012 comScore, Inc. (NASDAQ: SCOR), an internet company measuring how people navigate the digital world, revealed that a new solution to providing data of impressions delivered across TV, web, and mobile platforms. This unique multi-screen measurement system is known as validated Campaign EssentialTM Multi-Platform (vCE MP). This groundbreaking process enables marketing and media companies the information necessary to receive accurate performances indications of ad campaign delivery across all digital screens. Specifically, reports include individual based demographics, frequency and gross ratings points (GRPs), used to measure the size of an audience reached by a specific media campaign. This process has created a standard that is equivalent across different media platforms and channels. 
“Existing cross-platform solutions are limited by the use of traditional panel-based measurement … comScore’s census-based multi-platform methodology delivers … a campaign analytics product that is both robust and comprehensive enough to address the key questions our clients are asking.” –Cameron Meierhoefer, COO of comScore.
vCE MP Key Product Features
- Unduplicated Person-Based Measurement of Audiences Across Platforms. vCE MP is not based on cookie measurements of reach, frequency and GRPs, so it is not skewed due to the increase in cookies across multiple devices. This solves a major problem for marketers who depend on these calculations for advertising allocations of TV, web, and mobile platforms.
- Campaign Reporting for TV, Web, Smartphones and Tablets. Currently, the solutions are not effectively reporting to the mobile screens, which have now become an essential part of today’s digital media landscape.
- Multi-Platform Unification Using the comScore Census Network. The product’s informational resource is based on the comScore Census Network, which uses census data points to piece together multiple media platforms into one consolidated index of digital consumer behavior and ad exposure.
- Robust Sample Sizes. comScore Census Network has the large advantage to observe digital media at a census-level, with sample sizes numbering in the millions rather than limited hundreds.
- National TV Data from 5 Million U.S. Households. It is also noteworthy that advertising information from 5 million U.S. households’ TV set-top boxes is integrated into data collection.
- Viewability Measurement. This refers to display ads based on comScore’s MRC accredited vCE technology ensuring that impressions are based on the same ‘opportunity to see’ used in TV measurement.
comScore vCE for Video Can Now Include Viewability in Addition to Audience Validation for Online Video Market, Improving Cross-Media Integration with TV.
Nielsen has also expanded its multi-screen audience measurement capabilities. Nielsen has already arranged a series of in-depth tests with Cross Platform Campaign Ratings. They have used advertising’s largest players such as ESPN, Facebook, GroupM, Hulu and Unilever. These participants have allowed for unprecedented reach, frequency and GRP measurements for TV and Internet to ensure the best test results. 
The move to Cross Platform Campaign Ratings is a direct result of consumers and viewers interacting on a more cross-platform basis than ever before. The typical American spends close to five hours online and watches more than 34 hours of TV per week, over half watch video online. 
Steve Hasker, President of Global Media Products and Advertiser Solutions for Nielsen, explains that “Online Campaign Ratings is the first comprehensive advertising measurement system that has existed … It brings is a whole new level of accuracy to online measurement.” Online Campaign Ratings allows advertisers to demand and publishers to give guarantees based on viewers that are being bought and sold. 
OCR Key Attributes
- Automated tagging – streamlines the end‑to‑end process.
- Delivery of data in raw form to different platforms.
- Adaptiveness to the measurement system by industry standards.
Role of Social Media
With the introduction of Nielsen’s new gross rating points (GRP) for Online Campaign Ratings (OCR) there are significant tie-ins with social media sites. For example, Facebook data including gender and age are being combined with information from online advertising impressions to increase target effectiveness and improve monitoring of online advertisements. This new technology allows for video intelligence suites to focus on specific Ad effectiveness, which differs from mainstream platforms that merely take into account predetermined delivery goals, margins and efficiencies. Companies such as VideoHub, are able to monitor complex ecosystems in order to actively match Ads to the correct viewers, achieve marketing goals, and maximize impact. The standard metric used to measure advertisement effectiveness to this point has been clicks, which are not at all accurate or up to date with current consumer usage. This emphasizes the great importance of this new technological breakthrough in measurement systems.
Google Joins the GRP Movement
Google hopes to help standardize how digital advertisements are purchased and measured. This aims to facilitate Ad agencies and brands to compare the performance of offline with online Ad initiatives. In the attempt to achieve these goals Google has launched two new initiatives Active View and Active GRP, which are both available for display, content networks and YouTube. This enables companies to purchase “viewable impressions.”
The Social Economy
Today, social capital and intellectual assets are defined by online and real world activity. Participating in online communities and creating content that others are seeking, individuals are able to build an online brand, reputation and persona that transcends both the digital and actual world. 
The social economy and its landscape is creating vast opportunities for companies to reach consumers by engaging in conversations, thus allowing organizations to generate more in depth comprehension and form specifically targeted recommendations for consumers. McKinsey Global Institute report shows that 72% of companies are using social technologies, the vast majority are not attaining the entire benefit. 
Localytics is built for mobile & tablet apps. This allows for event and screen tracking used to analyze conversion funnels, screen flows, feature usage, content
access, advertising performance, and much more.
Localytics is designed to measure apps, providing the greatest accuracy and lightest footprint. Apps differer from websites, offering richer experiences and integration. Different from website and television, apps function offline and are essential for multitasking. Apps have access to key data collection (geotagging, storage, accelerometers, etc. Other key advantages include:
- Complete user analysis to identify effective sources for growth.
- Category based engagement and retention analysis.
- Tracking of buying patterns and/or subscriptions.
- Advertising APIs for integration optimize promotional campaigns.
- App usage, screen flow, and event analysis that track performance levels and consumer interface with functionality.
- Compliant with Facebook data and privacy policies. 
(Source: Localytics) 
Coming Up Next for Social Media
The Newsfeed is a key component that has not yet been tapped into by advertisers, but is on the near horizon. This would allow the greatest amplification where brand messages can serve as a channel for exposure to “Friends” within respective social networks. We are already seeing that Facebook’s mobile newsfeed ads are a great success with advertisers, and also allow for companies to acquire Facebook fans. These new initiatives will enable companies to gauge who, where and why specific users engage and amplify certain brand messages. This is why the newsfeed is classified as the “tipping point” when digital and social advertisements converge and result in a tangible and quantifiable return on investment.
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 comscore introduces revolutionary multi-platform campaign analytics solution to measure advertising effectiveness across tv, web and mobile. (2012, October 16). Retrieved from http://www.comscore.com/Insights/Press_Releases/2012/10/comScore_Introduces_Revolutionary_Multi-Platform_Campaign_Analytics_Solution_to_Measure_Advertising_Effectiveness_Across_TV_Web_and_Mobile
 Rodgers, Z. (2012, October 1). Nielsen, comscore move faster on multi-screen audience measurement. Retrieved from http://www.adexchanger.com/data-exchanges/nielsen-comscore-move-faster-on-multi-screen-audience-measurement/
 Delivering true multi-screen ad measurement, nielsen brings new solution to market. (2012, October 1). Retrieved from http://www.nielsen.com/us/en/insights/press-room/2012/delivering-true-multi-screen-ad-measurement.html
 Solis, B. (2012, March 3). Social capital: The currency of the social economy. Retrieved from http://www.briansolis.com/2010/03/social-capital-the-currency-of-digital-citizens/
 Chui, M., Manyika, J., Bughin, J., Dobbs, R., Roxburgh, C., Sarrazin, H., Sands, G., & Westergren, M. (2012, July 1). The social economy: Unlocking value and productivity through social technologies. Retrieved from http://www.mckinsey.com/insights/mgi/research/technology_and_innovation/the_social_economy
 Facebook mobile app install ads now measured by localytics. (2012, November 12). Retrieved from http://pymnts.com/news/businesswire-feed/2012/november/12/facebook-mobile-app-install-ads-now-measured-by-localytics-20121112005546/