Dear ROGER,


Welcome to the June 2024 issue of Key Notes - Marketing Keys' monthly newsletter! As students graduate and have finished or are finishing up the school year, we hope your business is also graduating towards a successful year! Key Notes is an informative, quick-read newsletter to get you caught up on all things media and marketing. Our goal is for you to be informed and entertained with the latest media and marketing happenings quickly and efficiently. 

Be prepared for a political storm

Every two years, US political campaigns flood the advertising landscape, presenting significant challenges for nonpolitical advertisers. The 2024 election cycle is no exception, with record political ad spending expected alongside the rise of misinformation fueled by generative AI.


Advertisers face inventory challenges as political spending is projected to reach $10.2 billion to $12 billion, driving up costs, especially in swing states and key counties. Timing is crucial, with the highest prices and limited inventory expected in October and early November, coinciding with the peak of political advertising.


Geographically, swing states like Nevada, Arizona, Michigan, and others will see intense ad saturation, impacting ad rates and availability. Channels most affected will be CTV, linear TV, online display video, and social media.


Brand safety is paramount due to negative political content and misinformation risks. Advertisers must prioritize placement control, contextual targeting, and secure premium placements to mitigate these risks. They should also consider avoiding platforms with intense political conversations and opt for lighter, more positive creative strategies.


Understanding and adapting to the unique challenges of the 2024 election cycle are essential for advertisers to effectively reach their audiences and protect their brands amidst unprecedented political ad spending and the excess of misinformation.

Are You Ready for the Streaming Ad Revolution?

By the end of 2025, video advertising on Netflix, Amazon, and Walmart will be essential for marketers. While it might seem unexpected, given these companies have only recently ramped up their video ad efforts, the shift is significant.


Ad-supported streaming hasn't been a major focus historically, even as Americans spent more time on streaming services than traditional TV and pay TV households fell below 50%. Most streaming ads were limited to secondary platforms like Peacock, Paramount+, Pluto TV, and Roku Channel.


This changed in January when Amazon began running ads on Prime Video, joining Netflix and Disney+ in the ad-supported streaming arena. With 115 million Prime members, Amazon immediately added scale and legitimacy to this market. Amazon’s advanced targeting capabilities, combined with data from Alexa and Fire TV, make its advertising platform particularly powerful.


Walmart is on a similar trajectory. The retailer's recent $2 billion acquisition of Vizio enhances its ability to target ads using viewing data from Vizio’s smart TVs, creating a seamless connection between advertising and sales. Netflix, which introduced an ad-supported tier in 2022, is also expanding its ad offerings. By acquiring sports rights and investing in both original and licensed content, Netflix is becoming a key player in video advertising.


Marketers should start engaging with these platforms now to take advantage of early adopter deals and realign their CTV strategies. Developing new marketing and measurement approaches for this evolving landscape is crucial. This new era in advertising, marked by sophisticated targeting in premium video inventory, offers exciting opportunities for the future.

Which Apps are you tuned into?

In the first quarter of 2024, the majority of U.S. households tuned into three or fewer streaming or connected TV (CTV) apps. On average, viewers watched 9.4 programs.


The top three streaming apps, based on viewing time, were YouTube (20%), Netflix (17%), and Hulu (10%). YouTube TV accounted for 8% of viewing time, with Amazon Prime Video at 6%. Netflix led in household reach with 64%, followed by YouTube (57%), Hulu (41%), and Prime Video (34%). FAST (Free Ad-Supported Television) platforms saw a notable increase, reaching 24% of households, up 9% from late 2023.


In TV program engagement, Netflix dominated with four shows in the top ten, while Amazon, Disney+, Peacock, Hulu, and Apple TV+ each had one. Amazon’s “Reacher” topped the TV program power score, with Netflix’s “Griselda” second. In movies, Netflix led with five of the top ten, and Amazon’s “Road House” was the most watched.


Ad engagement was also analyzed, showing premium CTV ads had a 56.1% attention rate, surpassing linear TV’s 54.5%. Linear TV, however, excelled in “presence in room” metrics at 76%, compared to premium CTV’s 73.9%. The first ad in a commercial pod performed best, with shorter pods engaging viewers more effectively, especially during prime-time.

Cracking the Gen Z Code

Reaching Gen Z consumers is a top priority for many brands. Though this demographic often seems inaccessible outside of TikTok, there are effective ways to engage them on TV and streaming platforms.


Contrary to popular belief, Gen Z doesn't have short attention spans. While they might watch content at faster speeds, it's due to the sheer volume of platforms and content types competing for their attention. Gen Z enjoys binge-watching and consuming lengthy series, even on TikTok.


Younger audiences are drawn to cross-platform content, with streaming premieres attracting viewers much younger than those on traditional TV. The potential lies in creating immersive platforms that combine gaming, shopping, and social interaction.


Gen Z favors a mix of subscription services like Netflix and Hulu along with free, ad-supported platforms like Tubi and the Roku Channel. They discover content through various means, including Google searches, podcast recommendations, and curated content hubs on connected TV platforms.


FAST platforms replicate traditional cable experiences but cater to Gen Z’s preference for diverse, dynamic content. These platforms' endless content flow and easy navigation resonate with younger viewers. Social media recommendations significantly influence Gen Z’s viewing choices, sometimes leading them to watch entire series in short-form segments on TikTok, as it delivers content in their preferred format.

Is Fast Food the New Luxury?

In a surprising turn of events, a recent survey has sparked widespread media interest by posing an unexpected question: Is fast food becoming a luxury? Nearly 80% of Americans now think so.


Chick-fil-A emerged as the top "luxury" fast food brand, followed by Starbucks and Chipotle. Despite their love for fast food—three in four Americans eat it at least once a week—62% reported eating it less due to increased prices. Moreover, 65% were "shocked" by how much fast food prices have risen in the past six months.


The perception of fast food as a luxury is driven by its rising costs and personal financial struggles, especially among lower-income Americans, parents with young children, Gen Zers, and women. McDonald's, facing significant backlash over price hikes, argued that their price increases are below inflation rates. Nonetheless, the data shows that fast food prices have indeed climbed across the board.


In response to consumer discontent, major fast food chains are preparing to launch bundled value meals this summer, aiming to attract budget-conscious customers back to their establishments. According to the survey, 72% of respondents indicated they’d be more likely to eat fast food during off-hours if discounts were available. As the debate continues, it’s clear that while fast food may now be seen as a luxury, Americans are still eager for a good deal.

BLOG OF THE MONTH

Here is a recent highlight from Marketing Keys' blog page. Please start following our blogs and let us know what you think.


Here's the latest on local news


Get the latest insight here!

BUILDING A BETTER MOUSETRAP

Whether you've been at your marketing position for 1 year or for 20 years, the pressure to produce and come up with the right strategies to reach your target audience is always there.


You no longer need to go about this on your own with 100% of the pressure. Now, you can collaborate with a media expert to help you with the latest, most effective and most efficient media strategies.


Did you hear that the average consumer today is exposed to 10,000 plus promotional messages a day?

Recently, Google put out a study that determined to even exist in a consumer’s mind, a brand needs to make

22 impressions a month digitally with that consumer. Therefore, you really need to make sure you have enough

frequency with your campaigns to get through the clutter in your target’s mind.


It is also critical to reach your customer on multiple platforms. This is how they are spending their media day. Therefore, it is critical that your messaging gets targeted and delivered in multiple online and offline ways.

 

As a 12 year former Disney executive and 30+ years in the business, I have discovered the best ways on how brands can cut through the clutter to reach their target.


By teaming up with us, we make the process enjoyable with minimal stress.


Furthermore, we will listen to you and always be committed to you. We strive to run our business with passion and humility all with the utmost integrity.


We look forward to empowering you to do your best work.


Until next month,


Roger Keys

Founder and CEO

Marketing Keys


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Which side are you on?!

Throw the records out the window. It is time to see who will have Chicago baseball's bragging rights!


It all happens this Wednesday, June 5th at Hooters Joliet from 7p-9p!


Join Free Country's Drew Walker at Hooters Joliet location to watch the Chicago Cubs take on the White Sox from Wrigley!


Free Country is Chicago's newest country station and Drew Walker is Chicago's legendary Country on-air personality.


With ice-cold drinks, mouthwatering wings and great prizes, there's no better place to watch the game. Game on! Hooters, the original wing joint.

Chicago's most compelling columnist returns!

During the days when local newspapers were the main place to get caught up on news, Mike Royko was an icon. Best known for his work with the Chicago Sun Times but also working for the Tribune and Daily News, Royko's columns on page 2 were enteraining, informative and must read material.


Discover the vibrant soul of Chicago through the lens of Mike Royko at the newest exhibit hosted by the Newberry Library, "Chicago Style: Mike Royko and Windy City Journalism".


Beginning June 20, this exhibit celebrates the legacy of Chicago journalist Mike Royko. Known for his incisive commentary on local politics and everyday life, Royko's columns captured the essence of Chicago for nearly four decades.


This exhibit is free and open to all! Whether you're a history buff, a journalism enthusiast, or simply curious about the heartbeat of Chicago, this exhibit promises to enlighten and inspire. Head here for more information.

Are you Socially Challenged?

During my 16 years as a business owner, I have discovered there are (4) main challenges that businesses have when it comes to managing their social media platforms:


1) A lack of time to post consistently enabling your company to grow its following


2) A lack of strategy/knowledge on the type of content and messaging to post in order to grow your following


3) A lack of knowledge of which social media platform(s) a company should utilize in order to effectively target on social media


4) A lack of graphic design/video ability/images to post eye-catching content to grab your target's attention.


If one or more of these challenges hits home, we can help! We have a reasonable and effective solution to manage your social media platforms. Our solution combines the wisdom of a 30-year media vet with the talents and creativity of our Gen Z social media expert, Cate Bender. 

 

For more information, please contact Marketing Keys at (312) 375-5007 or you can email us HERE!

Fill up your lead funnel!

In the days of Mad Men, creativity was everything. The goal was for a brand to be the most creative creating a tag line to resonate with the audience. Now, creativity takes a back seat to targeting through data and reaching your target synergistically through multiple mediums with an integrated marketing campaign.


Find out how Marketing Keys can help leverage your current database list and reach those people along with others that have similar traits and characteristics through other online platforms.


For more details, Contact us here!

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