TV Upfronts Face Amazon’s Media Shakeup

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This week we're covering:

• 📺 Amazon’s Media Review Rocks TV Deals

• 📀 Roku Takes Over Paused Screens

• 🎥 Creative Spotlight: KitKat - "Break Better”

• 🔍 Open AI Challenges Google’s Search Engine

Amazon’s Media Review Upends TV Market

Amazon is making waves in the TV advertising world, using its massive media account review to sway this year's upfront negotiations. The Ecommerce giant’s strategic timing is sending shockwaves through Madison Avenue, potentially reshaping the future of TV ad deals.

Key developments:

• Amazon is reviewing its media buying accounts, with Interpublic's Mediabrands, Omnicom's OMG, and WPP's GroupM competing for the business.

• The review's timing has slowed down the upfront process, with some agencies potentially holding back dollars to invest in Amazon's ad-supported streaming tier.

• Amazon spent nearly $3.5 billion on advertising in 2023 and $3.4 billion in just the first half of 2024, making it one of the nation's top ad spenders.

The company's growing influence stems from its expanding ad inventory, including spots in "Thursday Night Football" and "The Lord of the Rings: The Rings of Power," as well as its suite of ad-tech products.

Industry insiders say Amazon’s review could help it counter rate declines in the competitive streaming market. But agencies must carefully balance their pursuit of Amazon’s business with their duty to current clients.

As Amazon wraps up its first TV upfront season, advertisers point to its scale and lower ad prices as key reasons for securing yearlong deals.

With its massive resources and data power, Amazon is set to become a major force in TV advertising, upending traditional practices and completely reshaping the industry.

Read More:

• Amazon Closes First Upfront, Shaking Up the TV Market - AdWeek

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TV Industry Updates

• Pause screen takeover: Roku has filed a patent for technology that could display ads over any paused content played on connected devices.

• ACR data deal: The Trade Desk partnered with Nexxen, enabling advertisers to use ACR data for more efficient digital campaigns.

• Piracy ad scam: HUMAN uncovered "Camu," a Brazil-based scam serving 2.5 billion ads daily to piracy sites using domain cloaking.

• Netflix's edge: As streaming consolidates, Netflix has gained ground with its vast kids’ content and digital-first programming.

• Reality TV brand boost: NBCUniversal reported that reality TV, like Love Island USA, significantly lifts emotional engagement and brand recall.

Stay up to date on the latest in TV advertising by joining our Slack community!

Creative Spotlight: KitKat - "Break Better”

KitKat's global campaign displays the need for quality breaks, showing an overworked man finding relief with a KitKat.

The Details:

• VML's campaign for KitKat spans TV, online, OOH, social media, and influencer collaborations worldwide.

• Set to Queen's "I Want to Break Free," the centerpiece film shows a man buried in paperwork finding relief with a KitKat.

• KitKat and Kantar's research found only 34% of people take high-quality breaks, despite most thinking they do.

What We Loved: The ad brilliantly visualizes the weight of work-related stress through physical metaphors, making the relief of a KitKat break feel tangible and relatable to viewers.

Marketing Mix

• AI search revolution: OpenAI announced the development of a search engine capable of challenging Google.

• Yelp vs. Google: Yelp sued Google for antitrust violations, accusing it of diverting traffic to its own local search product.

• Creepy listening: Cox Media Group pitched a new ad tool that uses smart home devices to capture conversations for targeted ads.

• Weaning off performance marketing: Businesses have shifted towards brand marketing as performance marketing alone has become unsustainable for growth.

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