May 14, 2019

The rise of addressable ad alliances

Data: eMarketer; Chart: Harry Stevens/Axios

New to this season's UpFront event season is AT&T's Xandr, which will be revealed at its event in New York City on Tuesday morning.

  • Xandr will unveil "Community," a curated marketplace that will leverage the combined digital TV ad inventory to allow advertisers to reach targeted audiences at scale with TV ads.
  • Community will pull together inventory from WarnerMedia’s CNN, TNT, TBS, truTV, B/R Live, Otter Media, and Warner Bros., as well as VICE -Together with Hearst Magazines, Newsy, and digital video platforms Philo, Tubi, and Xumo,
  • For context, AT&T's "WarnerMedia" was a part of a similar consortium of advanced television publishers called "Open AP," but dropped out last month to create its own addressable ad alliance, which is slightly different from what Open AP offers.

The big picture: Almost every major TV network and provider is working on their version of an advanced TV ad product, or TV ads that can be digitally targeted.

  • The hope is that one day, networks will be able to capture lucrative ad dollars from marketers that want to reach more audiences in a more targeted fashion than they can with traditional TV ad buys, but at scale.

Be smart: No TV network has the ability to serve addressable ads at scale alone, that's why they're developing addressable advertising alliances. Michael Beach has a good breakdown of the alliances via his must-read newsletter "The State of the Screens:"

  • Community: WarnerMedia’s CNN, TNT, TBS, truTV, B/R Live, Otter Media, and Warner Bros., as well as VICE -Together with Hearst Magazines, Newsy, Philo, Tubi, and Xumo
  • NCC Media: Comcast, Cox, Charter
  • Project OAR: AMC Networks, AT&T, CBS, Comcast NBCUniversal, Discovery, Disney, Freewheel, Hearst, Inscape, Turner, Xandr, Vizio

Yes, but: That transformation is happening slowly, and at this point, very few dollars are expected to be allocated towards addressable TV ad buys in the near future.

Meanwhile: Marketers are instead putting their dollars towards digital video platforms, although data and studies suggest that television networks will remain supreme for a while.

Go deeper: Coming to a TV near you: personalized ads

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Why it matters: Per the BBC, a police officer and six civilians "died in the capital's deadliest day" since last year's passing of the Citizenship Amendment Act — which allows religious minorities but excludes Muslims from nearby countries to become citizens if they can show they were persecuted for their religion — hours before President Trump and members of the U.S. first family were due to visit the city as part of their visit to India.

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Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The Trump administration sent a letter to Congress Monday requesting a funding commitment of at least $2.5 billion to help combat the spread of the novel coronavirus, as the number of confirmed cases in the U.S. rose to 53.

The big picture: As South Korea and Italy stepped up emergency measures in efforts to thwart the spread of the virus, WHO expressed concern about infections with no clear link to China. COVID-19 has killed at least 2,699 people and infected more than 80,000 others, with all but 27 deaths occurring in mainland China.

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