6 RESPONSE JUNE 2018 www.responsemagazine.com
SAN JOSE, Calif. — A report says 95
percent of marketing leaders believe
digital media must become more reliable
and that 21 percent plan to reduce their
spending this year because of inaccurate,
questionable, or false digital media reporting.
The report, “Engage at Every Stage:
An Investigation of Video Activation,”
from the CMO Council says marketers
have also increased their scrutiny of platforms like Google and Facebook.
Among the findings:
● 70 percent of brand leaders said
that negative news headlines have
impacted their budgets.
● 73 percent want more transparency into traffic, viewers, and
● 45 percent want real-time access
to customer data and intelligence.
● 40 percent want fees based on performance outcomes.
Marketers also questioned viewability
standards, with just 3 percent agreeing
on the Media Rating Council’s (MRC)
definition of 50 percent of content play-
ing for two consecutive seconds with the
sound off. Of those who agree with the
standards, 30 percent said their approval
is only because there isn’t a better metric
Many reported plans to increase their
investments in online video ads, which
28 percent believe are more important
than other media investments and 40
percent said are growing in importance.
Ninety-five percent plan to increase
investments in digital video in 2018, and
nearly half will increase their spend by
up to 25 percent.
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Marketers Lack Trust in Digital
Media; Poor Metrics Are a Culprit
BY DOUG McPHERSON
Growth in New Digital Pay-TV
Services Slows Cord Cutting
BY DOUG McPHERSON
NEW YORK — The rate of growth
for cord cutting from traditional pay-TV services remained at 3. 4 percent in
2018’s first quarter, the same rate as in
2017’s fourth quarter, reports MoffettNathanson Research.
However, when taking into account
new subscriptions for virtual multichan-
nel video programming distributors
(vMVPDs), overall pay-TV cord cut-
ting growth declined to just 0.5 per-
cent — the lowest rate of decline since
Analysts say AT&T illustrates the
dynamic at play with a first-quarter gain
of 312,000 subscribers to Direc TV Now
more than offsetting losses sustained by
Direc TV and U-verse.
Both AT&T and Dish Network
used their first-quarter earnings calls to
tell investors that new features, such as
cloud DVR, as well as improvements in
advanced advertising, will provide new
revenue streams for vMVPDs.
In the company’s April earnings call,
AT&T CFO John Stephens said the
company actually had more subscribers
today than it did two years ago because
of the success of Direc TV Now.
Craig Moffett, senior research analyst
at MoffettNathanson, says operators of
media networks are now getting paid
more (a higher per-subscriber affiliate
“That’s not to say a skinny bundle is
a perfect replacement for a fat one —
remember, not every network is in every
vMVPD bundle — but it’s a whole lot
easier to face a future where 70 percent
or 80 percent of all cord cutters are still
paying for a streaming video bundle,
even if it’s a skinny one, than to face a