Top 5 Media Landscape Insights- August

Stay on top of today’s constantly changing media environment with DirectAvenue’s Top 5 Insights. We give you specific network updates and emerging media trends in a digestible format.

August 1, 2024

1. Microsoft AI-Powered CTV Asset Ad Recommendations- Microsoft Advertising announced new AI-powered recommendations for video and display ads, along with plans to introduce connected TV (CTV) ad recommendations soon. While the video tool is available now, Microsoft has not specified when the CTV tool will be released. Marketers can generate new video ad recommendations by entering the landing page URL and choose from AI-generated creatives that can be manually edited. The AI-driven recommendations, integrated into the ad creation process, enable the creation of assets across various formats—video, display, and connected television (CTV)—to enhance cross-platform campaigns.
2. How NBCU, Google Deal Could Change Television- NBCUniversal’s collaboration with Google has the potential to reshape the future of television, provided the company fully explores its possibilities. NBCUniversal and Team USA have teamed up with Google to leverage the company’s innovations in artificial intelligence and 3D imaging to cover the Paris 2024 Olympic and Paralympic Games. The partnership emphasizes using Google’s technology, such as Search, Maps, and Gemini, to tell athletes’ stories. The fusion of technology and creativity can produce remarkable results. Earlier this year, Google released a list of 101 real-world generative AI (GAI) use cases from organizations around the globe. Notably, only a few media companies appear on the list.
3. 60% Of Ad Execs Plan Big Hikes In CTV AD spend, Study Finds- While there may be some weakness in the overall TV-video market, connected TV streaming remains strong, with 60% of advertisers planning to increase their spending this year by an average of 21%. This finding is from a new survey conducted by Premion, a streaming/CTV ad-sales operation owned by Tegna, and Advertiser Perceptions. According to 45% of advertising executives, the primary source of increased CTV advertising dollars will be linear TV. Meanwhile, 27% expect the shift to come from digital non-OTT video, 26% from social media, and 23% from digital display advertising.
4. Deadpool & Wolverine Smashes R-Movie Record With $250M Opening- Walt Disney’s Deadpool & Wolverine dominated the midsummer box office, earning an impressive $250 million in domestic theatrical revenue, making it the highest-grossing R-rated movie opening in history, according to Comscore. Major spending on individual programming included ABC’s 2024 NBA Finals last month ($3.1 million), CBS’s Super Bowl in February ($3.1 million), and most recently, NBC’s U.S. Olympics Trials ($773.9 million). Universal’s Twisters performed well in its second week, bringing in $35.3 million, while Universal’s Despicable Me 4 earned $14.2 million in its fourth week.
5.  Netflix Estimated For 78% Growth By 2027- Without Sports, Higher Ad Revenue- Netflix is already the leader among premium streaming services and highly profitable, and one estimate predicts that it will grow by nearly 80% over the next three years. A report from Pinnacle Investment projects a 78% growth by 2027, although it did not provide specific details. A significant part of Netflix’s potential for growth in revenue and scale is likely to come from advertising, which has a very high-profit margin. Consider that Netflix has managed to succeed without major sports content like the NFL or NBA and is still expected to grow by nearly 80% in the next three years. This is likely to make executives at competing streaming services pay much closer attention.