Throughout the last year, with many of us feeling stressed and overwhelmed by the impact of the pandemic, we turned to memories of the past for comfort. This involved revisiting old favourite TV shows, films and music as this brought a sense of nostalgia during such an uncertain time.
According to a Nielsen study conducted with Billboard in the USA, which explored the impact of the pandemic on entertainment consumption, it showed that more the half of consumers sought comfort in familiar music and TV shows – with 54% recently rewatching episodes of an old favourite TV show. This trend was also observed in the UK where according to a survey by Uswitch, 45% of Brits rewatched the sitcom Friends.
Looking at what is driving this trend, an article by Stylist discussed how when rewatching old favourites, or listening to old music we are remembering the good memories that are associated with them, whilst also longing for those “better” times.
To accompany this, there as also been a rise of TV recap podcasts. Although not a new trend, it is something that has certainly picked up pace during the pandemic with revisiting of old favourite TV shows. These podcasts are hosted by former stars of the show, such as The Office, where they provide listeners first-hand experience of their production.
One example is the popular podcast called; Fake Doctors, Real Friends, which features Scrubs co-stars Zach Braff and Donald Faison, who relive the hit TV show, discussing an episode of the show each week. In an interview with The Ringer, Braff explained that the podcast happened to appear at a time when people were more likely to revisit Scrubs, as it offers their audience an excuse to focus on something other than the pandemic.
They are not the only ones who have taken advantage of this trend. ‘Talking Sopranos’, debuted last year hosted by former Sopranos stars Michael Imperioli and Steve Schirripa, and the upcoming launch of “Welcome To The OC, Bitches!” in April with Rachel Bilson and Melinda Clarkes, comes nearly 18 years after the show’s premiere.
Going back to our favourite TV shows and / or accompanying them with a recap podcast, has offered comfort and escapism from the situation we have been navigating this past year. It will therefore be interesting to see whether this trend will continue and offer opportunities, especially as we start to ease out of lockdown.
This month The Range became the latest online retailer to launch their own marketplace allowing other brands the opportunity to sell to their customers. Approved sellers will receive exclusivity rights to avoid competing with other sellers on the platform but will also have to deliver items to customers directly and manage returns process.
We often hear about the rapid increase in DTC retail however the stats show that marketplace shopping is still miles ahead. In the UK 57% of shoppers now buy from marketplaces, compared to the 13% who order directly from retailer websites. This was accelerated further by the pandemic when between March and June of 2020, the average online shopper made 11 purchases from online marketplaces but just 3 from an online retailer*.
Whilst marketplaces like The Range are nothing new (*cough cough* Amazon) their existence gave many brands a lifeline during lockdowns as traditional retail outlets closed, but at what cost? Fees vary massively for brands looking to sell on marketplaces, The Range reportedly charge between 7-20%. When you factor in the cost of delivery, returns and fulfilment this doesn’t leave much profit margin for sellers.
Sellers also need to be careful with their choice of marketplace. Whilst onboarding as many as possible might seem like a logical step, these marketplaces have different audiences in the same way as media does, so they need to make the right choice. This way they can fully optimise their marketplace homepage to be an extension of their brand.
For those retailers such as The Range who have pivoted towards marketplaces, there is an opportunity for a huge additional revenue stream. Not only can it provide a bigger pull to new and current customers to get more items in one place, but there is also advertising revenue to be made. Take ASOS as an example, they started selling media space within their listings to drive users to their most “strategic brands” but with job vacancies for programmatic execs it’s clearly something worth investing in.
*Source: E-Commerce News
Earlier this month, Twitter co-founder Jack Dorsey announced he was selling his inaugural tweet, in an auction scheduled to end on March 21st, the fifteenth anniversary of Twitter, with proceeds donated to charity. At the time of writing, the highest bid is $2.5m.
The contents of this tweet, you ask? “just setting up my twttr”.
That’s it. That’s the tweet.
The auction is the most outlandish use to date of non-fungible tokens (NFTs), a craze which – from video basketball trading cards to William Shatner memorabilia – is revolutionising the collectibles market. NFTs are digital entries on the blockchain – the technology used by cryptocurrencies – and thus cannot be altered. Each token is unique, and the purchaser receives no physical copy. Once Dorsey’s tweet has been sold, it will still be accessible to anyone online who wishes to view it, free of charge.
Much like Bitcoin, the NFT market is booming, having grown by more than 705% in three years to $338m, according to Forbes, as tech entrepreneurs scramble to invest in rival auction services. That growth is snowballing in 2021, fuelled by ludicrous price-tags like the $69m just paid for a .jpg file at a Christies auction.
While these tokens may seem to appeal only to millionaires with cash to burn, NFTs could play a pivotal role in the future of digital media. The technology offers a secure route for creators to sell their work, with buyers safe in the knowledge that they are receiving an authentic item. If the owner sells on their token, the original artist receives a cut, as they do for each subsequent sale, creating a continuous source of income not afforded by physical art.
After a decade of creators protesting over lost revenue fuelled by the rise of streaming services – an issue only exacerbated by the pandemic, as shops shuttered and venues closed – NFTs may offer musicians an opportunity to claw back lost royalties. The acclaimed group Kings of Leon are among the first to experiment with the technology, releasing a version of their album this month exclusively as an NFT.
Print media, too, may look to adopt blockchain technology. Fuelled by a near-terminal decline in advertising revenue, many titles have sought to implement paywalls, with varying degrees of success. NFTs could offer an alternate source of revenue for publishers, where consumers participate in microtransactions for individual articles.
While NFTs represent only digital works for now, this could change. In 2019, Nike obtained a patent which allows it to create blockchain-compatible trainers – where the token would serve as a digital certificate of the shoes’ authenticity. Should Nike’s experiment prove fruitful, other brands will surely follow.
The use of non-fungible tokens is not without controversy, however. Far from a sustainable breakthrough, the carbon footprint of producing an NFT is enormous – one piece of digital art created by the musician Grimes produced an estimated 70 tonnes of CO2 emissions. Furthermore, like any booming market, the risk of investing in NFTs is substantial: many in the financial world have long predicted that the blockchain bubble would burst in much the same vein as the dotcom bubble of the early 2000s. So far, their predictions have come up short.
Whether the recent NFT craze will have a lasting impact on the digital media industry remains to be seen. Yet, after a year in which almost every aspect of life was forced to adapt to a new digital normal, brands should turn a blind eye to this latest trend at their peril.
It is recently reported that John Lewis is about to launch its own buy now pay later (BNPL) product as they respond to consumers thirst for more convenient and easier ways to pay. With talk of M&S following suit, BNPL schemes have been the fastest-growing online payment method in the UK last year and are predicted to account for 10 per cent of UK e-commerce spending by 2024.
The agreements, provided by firms such as Klarna and Clearpay, are a flexible payment method that allows customers to make a purchase when they may not have the funds at that time. They can then pay for their goods flexibly – and interest-free – either within a 14-day window, 30-day window or in instalments.
Klarna recently has raised $1billion (£720million) of new funds amid rapid growth. The Swedish firm reported to be valued at $31billion making it the most valuable fintech firm in Europe.
Greater regulation is not far behind, but that will only bring further consumer confidence in the payment mechanic.
Shopping cart abandonment is one of the biggest issues that online retailers still face, with a lack of payment options being one of the key drivers. The payments landscape however, is evolving at pace, responding to consumers’ drive for convenience and the ability to have more flexibility in their purchasing decisions.
Retailers need to think about what payment methods they want to integrate to give their customers the right choice.
What else we’ve uncovered:
You Tube is testing the ability to shop directly through videos, as it creates a shoppable platform.
Amazon quietly buys a competitor to Shopify as battle hots up.
Shopify to introduce Shop Pay to Facebook and Instagram to help businesses capitalise on social commerce
Internet retailing – https://internetretailing.net/mobile-theme/mobile-theme/almost-a-fifth-of-the-uks-population-have-used-buy-now-pay-later-as-they-shift-away-from-credit-cards-and-towards-mobile-22843
Monday 8th March saw people from all over the world come together to celebrate International Women’s Day. A day in which we can all reflect and show support towards the inspirational women in our lives and in wider culture.
Despite March being a difficult month for British women – the tragic murder of Sarah Everard highlighted the chilling reality of gender inequality all women face daily – brands still used IWD as an opportunity to celebrate some of the more positive sides to womanhood. For example, John Lewis supported The Prince’s Trust’s #ChangeAGirlsLife campaign, by donating £5 to ‘Women Supporting Women’ when every AND /OR item was sold. Further, beauty and fragrance brand, Jo Malone, released a limited edition of their iconic ‘Peony and Blush Suede’ perfume, also choosing to donate some of their attributed profits to one of their partner charities.
Whilst admirable, given the nature of the categories they operate in (beauty and fashion), this isn’t new, and is instead somewhat expected. Brands who have pushed the boundaries within categories that are less obviously female focussed are more likely to cut through and drive real change, particularly when the topic of gender and gendered behaviours are becoming increasingly problematised in emerging culture (see our whitepaper, Beyond Binary, for more info.)
For instance, to celebrate International Women’s Day, EasyJet launched Virtual Pilot School – a programme to encourage more women to become pilots. It offers virtual introductory sessions with female pilots across homes and schools, to empower young females towards a career that is still heavily under-represented by women. Lego, who (much like the rest of the toy category) has previously come under fire for their outdated gendered stereotypes, launched Future Builders. Lego fans can re-create their famous 1981 ad, with their own faces, and label themselves as future innovators, creators or pioneers. Both brands are engaging with the topic of gender within a context where we still too often see an archaic view of gender – so their roles in addressing these issues are more important now than ever.
Whilst brands’ contributions to International Women’s Day are welcome and applauded across the board, brands within categories who are still guilty of not addressing gender imbalances in culture have never had a more critical role to play in shaping a more inclusive culture: one that’s reflective of the world all genders want to be seen in.
The basic trading mechanism for TV trading hasn’t changed since the 1990s. It’s time for a makeover.
In 2020, we saw an increase in opportunities to access broadcast content outside of the traditional linear trading mechanism. We’ve seen huge developments in ITV’s long-awaited Planet V, an increase in inventory and targeting options with Adsmart, and developments in using clients’ first party data to enhance targeting on BVOD through Infosum. There are now many ways to access broadcast content via digital trading mechanisms, offering better targeting, attribution modeling and more flexibility to advertisers.
Since the rise of digital advertising, ‘the death of TV’ has long been in discussion. But surprisingly the UK linear TV revenue has remained relatively stable. In fact, revenue fell a mere 10% in 2020 vs 2019, despite the global pandemic. Although we had a rocky start to the year, TV revenues rebounded in H2 as the market grew in confidence and as stations offered more flexibility to the market by dropping their 2-month AB deadlines. (A perk we’ve always had at the7stars, but a huge change for the rest of the market.) Understandably, brands needed mass reach around high-quality video content to regain awareness after a difficult H1. This meant that they naturally returned to linear TV. And while it’s hard to say that increased flexibility resulted in the strong revenue numbers in Q3 and Q4, we can assume that it certainly had an impact. So much so, Channel 4 and Sky agreed to drop their 2-month AB deadlines down to 1 month.
Despite this change, it’s looking increasingly likely that we’ll see a decline in linear TV revenue as opportunities in BVOD and Adsmart improve. We may even see SVOD providers turn to advertising models in order to maintain revenue streams. So, what’s next for linear TV and how can it evolve to ensure there’s still a place for linear on a media plan?
- Flexibility is key: continue to reduce AB deadlines by improving camgen/autogen technology at the sales houses
- Move away from TV pricing being traded as a discount off an ITV station price, this is stifling the planning process and taking focus away from clients’ core KPIs
- Trading in volume rather than share will improve transparency in the market and allow for more competitive pricing
- A form of measurement that can report on Broadcast media as a whole: advancement in products such as CFlight – will result in better planning and overall media effectiveness
Altering how TV is currently traded will also have positive effects on the way TV is currently audited. It will take the focus away from a bottom-line discount on an ITV price and basic quality parameters such as PIBs. Instead, it will move towards an auditing process that looks at the effectiveness of a media plan in reaching specific audiences and the business effects for clients.
To summarise, it’s clear that linear TV will be around for a long time. Just as Netflix and Amazon Prime have kept the broadcasters on their toes when it comes to content, broadcasters must now ensure linear TV is accessible and relevant to advertisers in an increasingly digital world, through the way that it’s traded.
Making up nearly 16 million of the UK population in 2021, Gen Z are fast rising as a leading market segment with immense buying power potential. Growing up against the backdrop of the 2008 recession and entering adulthood amid an unprecedented pandemic, this generation’s life aspirations and attitudes vary greatly from the cohorts that precede it. Brands need to understand their tendencies and behaviours now in order to connect with them in the future.
When it comes to their finances, they have been dubbed as a generation of “unexpected savers” by CNBC. It seems that the world Gen Z have grown up in has shaped their frugal financial habits. Since the start of the economic downturn, Gen Z have seen and encountered financial struggles making them savings- oriented with 74% preferring brands that offer discounts. Research from Vice, Insider and Adobe can only confirm Gen Zs pragmatic spending habits.
This has only been fueled by the rise of online banking such as Monzo and Starling, making managing finances easier and more accessible. Surprisingly, Gen Z also spend less than any other generation that precedes them and do less online shopping than millennials, despite being the first digitally native cohort with access to the likes of buy now pay later schemes such as Klarna. In fact, only 49% did online shopping more than once a month compared to 74% of millennials.
Whilst they are financially savvy and were in a secure place pre-2020, COVID has been one of the most defining world events for this generation. The pandemic drove significant instability for many Gen Zs who were starting university, careers and establishing their way in the world, only for their plans to grind to a halt, with many moving back home to their parents and losing their jobs within a dire employment market.
This has certainly been reflected in their motivations and future life aspirations, where we see a strong desire for stability and security for this career-oriented generation. But it hasn’t limited the size of their goals, 59% identify ‘success’ as buying a home – a feat that has become more challenging over the years as banks demand higher deposits and house prices increase. This is consolidated in Gen Z’s 10-year plans, with 56% claiming the same, outvoting plans for having children (33%), getting married (34%) and relocating (23%).
With Gen Z’s population having exceeded the population of millennials and baby boomers in 2019, and now accounting for 32% of the global population, their presence can already be felt strongly in the market, despite the oldest of Gen Z being only 24 years old. As Gen Z look to navigate their way out of the pandemic and plan for the future, brands need to focus on providing stability, products and services’ that provide practicality to their everyday life.