1 00:00:05,880 --> 00:00:10,520 Speaker 1: Welcome to another episode of Strictly Business, the podcast in 2 00:00:10,560 --> 00:00:13,000 Speaker 1: which we talked with some of the brightest minds working 3 00:00:13,039 --> 00:00:18,160 Speaker 1: in media today. I'm Andrew Wallenstein with Variety. Will be 4 00:00:18,239 --> 00:00:21,079 Speaker 1: a big year for NBC Universal, between the launch of 5 00:00:21,120 --> 00:00:23,840 Speaker 1: the new streaming service Peacock and the return of the 6 00:00:23,880 --> 00:00:27,520 Speaker 1: Summer Olympics. Both are big priorities for my next guest, 7 00:00:27,920 --> 00:00:32,040 Speaker 1: Linda Yacarino, Chairman of the Advertising and Partnerships at NBCU, 8 00:00:32,640 --> 00:00:36,040 Speaker 1: where she represents over ten billion dollars in ad inventory, 9 00:00:36,560 --> 00:00:39,440 Speaker 1: and she's joined today by Mike Chapman, global lead for 10 00:00:39,520 --> 00:00:44,040 Speaker 1: Media and Entertainment Strategy at Accenture. Accenture is the sponsor 11 00:00:44,120 --> 00:00:47,520 Speaker 1: for this episode of Strictly Business. What does Peacock bring 12 00:00:47,600 --> 00:00:51,040 Speaker 1: to the table that you or don't already deliver across 13 00:00:51,080 --> 00:00:54,560 Speaker 1: so many broadcast, cable and digital fronts. I'm for us 14 00:00:54,600 --> 00:00:58,680 Speaker 1: at NBCUniversal. This is how we're approaching it. So we 15 00:00:58,760 --> 00:01:03,480 Speaker 1: say all the time, all the other again another air quotes. 16 00:01:04,480 --> 00:01:06,520 Speaker 1: I'm now realizing that I'm doing a podcast. Have to 17 00:01:06,560 --> 00:01:12,600 Speaker 1: stop air quoting. Um. Other streaming services are pushing advertisers 18 00:01:12,600 --> 00:01:16,600 Speaker 1: out and in a world of fragmentation, that is only 19 00:01:16,640 --> 00:01:21,000 Speaker 1: going to become more fragmented and more complicated. It seemed 20 00:01:21,920 --> 00:01:25,720 Speaker 1: pretty logical to say, let's not push them out, let's 21 00:01:25,720 --> 00:01:29,240 Speaker 1: invite them in. Okay, So that was okay, check the box. 22 00:01:29,280 --> 00:01:32,600 Speaker 1: Got that and all that content that you're talking about, 23 00:01:32,640 --> 00:01:36,280 Speaker 1: which is super exciting, from the big Supertanker vault of 24 00:01:36,480 --> 00:01:40,479 Speaker 1: NBC Universal to all the things that we we air 25 00:01:40,560 --> 00:01:43,640 Speaker 1: and broadcast all day every day. The the access that 26 00:01:43,720 --> 00:01:48,120 Speaker 1: we have to great content is truly truly unparalleled. That 27 00:01:48,240 --> 00:01:53,920 Speaker 1: being said, for the first time ever, there is an 28 00:01:53,920 --> 00:01:58,240 Speaker 1: opportunity to bring a product to a market that's data 29 00:01:58,320 --> 00:02:05,160 Speaker 1: driven on a current day technology platform, fueled by great content, 30 00:02:05,920 --> 00:02:10,440 Speaker 1: but it's not paralyzed or handcuffed to any legacy whatsoever. 31 00:02:10,960 --> 00:02:14,000 Speaker 1: I don't have to have a conversation about a C three. 32 00:02:15,440 --> 00:02:20,800 Speaker 1: We have conversations about what do our advertisers want to 33 00:02:21,520 --> 00:02:24,560 Speaker 1: see in what we ask them, what do you see 34 00:02:24,560 --> 00:02:28,480 Speaker 1: as the future of advertising? How do we partner with 35 00:02:28,600 --> 00:02:34,079 Speaker 1: you to reinvent not just a modeling, how it will 36 00:02:34,120 --> 00:02:38,480 Speaker 1: be ultimately measured, because it will be measured in outcomes 37 00:02:38,520 --> 00:02:42,080 Speaker 1: in some way, But what is your what is the 38 00:02:42,120 --> 00:02:47,040 Speaker 1: commercial content look like? Let's look at advertising not in 39 00:02:47,360 --> 00:02:53,840 Speaker 1: a perishable period of time, but in a rebirth of creativity. 40 00:02:53,960 --> 00:02:57,080 Speaker 1: And that's what we're talking to our advertisers about because 41 00:02:57,760 --> 00:03:02,280 Speaker 1: we have no legacy. It's all new. Sure, yeah, you know, 42 00:03:02,360 --> 00:03:04,959 Speaker 1: I would add um that was an interesting point you 43 00:03:05,000 --> 00:03:08,440 Speaker 1: brought up about bringing advertisers in versus pushing them out. 44 00:03:08,880 --> 00:03:10,920 Speaker 1: And this gets back to a point I made earlier 45 00:03:10,960 --> 00:03:14,480 Speaker 1: about just want them to like us. I think they do. 46 00:03:16,400 --> 00:03:18,600 Speaker 1: It gets back to an earlier point I made about 47 00:03:18,680 --> 00:03:21,080 Speaker 1: the pace of change in the ecosystem. So if you 48 00:03:21,120 --> 00:03:24,600 Speaker 1: look at the proposed director consumer services out there, there 49 00:03:24,919 --> 00:03:28,320 Speaker 1: a lot of cases replications or of extensions of pay TV. 50 00:03:29,240 --> 00:03:31,800 Speaker 1: You know, the business models are similar. Instead of me 51 00:03:31,919 --> 00:03:33,840 Speaker 1: paying an m v p D, a cable company, a 52 00:03:33,960 --> 00:03:37,640 Speaker 1: satellite company, I'm paying this programmer in the same way, 53 00:03:37,720 --> 00:03:40,600 Speaker 1: and you know it's going to have a similar contents 54 00:03:40,680 --> 00:03:44,200 Speaker 1: late maybe more exclusive, but it's a very similar model. 55 00:03:44,840 --> 00:03:50,200 Speaker 1: And so the question becomes how much true incremental reach 56 00:03:50,440 --> 00:03:54,280 Speaker 1: or protection of existing reach those models put out there. 57 00:03:54,520 --> 00:03:58,040 Speaker 1: That's the you know, the flaw or the limitation potentially 58 00:03:58,080 --> 00:04:01,200 Speaker 1: in the director consumer model. Because you know, the research 59 00:04:01,240 --> 00:04:04,360 Speaker 1: we've seen at Center's done studies that have looked at 60 00:04:04,400 --> 00:04:07,920 Speaker 1: how many subscriptions and how much a consumer would spend, 61 00:04:08,120 --> 00:04:11,320 Speaker 1: And you know, our research suggests that there's going to 62 00:04:11,400 --> 00:04:15,720 Speaker 1: be only a certain appetite for certain numbers services and 63 00:04:15,720 --> 00:04:19,520 Speaker 1: a certain spend per month for a consumer. So so 64 00:04:19,600 --> 00:04:23,160 Speaker 1: that's the model that you know, most programmers are going 65 00:04:23,200 --> 00:04:27,960 Speaker 1: after today. I think the advertising ankles in interesting. The 66 00:04:28,040 --> 00:04:30,640 Speaker 1: question I think it's which will have to be borne 67 00:04:30,640 --> 00:04:35,120 Speaker 1: out by nbc U is does the advertising angle allow 68 00:04:35,240 --> 00:04:38,880 Speaker 1: you to continue to fund and produce premium content that 69 00:04:39,040 --> 00:04:41,520 Speaker 1: is competitive with the other services. Do you have a 70 00:04:41,600 --> 00:04:44,040 Speaker 1: sense though of what the ad loads will be like 71 00:04:44,160 --> 00:04:48,040 Speaker 1: on Peacock because already back on linear TV, you guys 72 00:04:48,120 --> 00:04:51,240 Speaker 1: have been all about cutting down the amount of that. 73 00:04:51,240 --> 00:04:54,160 Speaker 1: That part's going great. It has to happen. I know 74 00:04:54,279 --> 00:04:57,600 Speaker 1: there's a an occasional hey are you guys still reducing 75 00:04:57,600 --> 00:04:59,240 Speaker 1: and they run a report and they go, oh, you're right, 76 00:04:59,440 --> 00:05:02,400 Speaker 1: it's still reducing. Uh, we do what we say we're 77 00:05:02,400 --> 00:05:05,599 Speaker 1: going to do. Number one. Number two, you've got to 78 00:05:05,640 --> 00:05:10,240 Speaker 1: improve the viewing experience. And if anyone has watched linear 79 00:05:10,400 --> 00:05:16,160 Speaker 1: television recently, it's not it's a lot less than perfect. 80 00:05:16,240 --> 00:05:19,760 Speaker 1: And we're determined to improve the consumer experience. That's the 81 00:05:19,800 --> 00:05:23,920 Speaker 1: first thing. Second thing I think you can rely on 82 00:05:24,120 --> 00:05:30,480 Speaker 1: Peacock to have the lightest load of any and supported 83 00:05:30,520 --> 00:05:34,239 Speaker 1: streaming platform that's out there right now. That's the plan. 84 00:05:35,040 --> 00:05:38,760 Speaker 1: Things can change, but that's the plan. And next year 85 00:05:38,800 --> 00:05:41,840 Speaker 1: I think will be also a good demonstration of MBC 86 00:05:41,960 --> 00:05:46,760 Speaker 1: Universal's power there with the Olympics returning. How big do 87 00:05:46,839 --> 00:05:50,360 Speaker 1: you think the Games are going to be this time around? 88 00:05:50,720 --> 00:05:55,720 Speaker 1: Particularly from an advertising perspective, There is no doubt that 89 00:05:56,560 --> 00:05:59,719 Speaker 1: the Olympics, which will there's no doubt that the Olympics 90 00:05:59,800 --> 00:06:05,760 Speaker 1: in Tokyo will be the most viewed event in television 91 00:06:05,839 --> 00:06:13,599 Speaker 1: historysion television in the broadest sense of history, because we've 92 00:06:13,640 --> 00:06:17,719 Speaker 1: evolved the way we broadcast and for people listening, for 93 00:06:17,800 --> 00:06:22,159 Speaker 1: listeners on air quoting um, the way we broadcast. We 94 00:06:22,240 --> 00:06:29,560 Speaker 1: will broadcast every event, every medal in over I have to, 95 00:06:29,800 --> 00:06:32,920 Speaker 1: you have to. I'm going to say it's about seventy 96 00:06:33,000 --> 00:06:41,280 Speaker 1: one hundred hours of Olympic competition. So whatever sport you 97 00:06:41,320 --> 00:06:45,799 Speaker 1: are interested, you will be able to see. And there's 98 00:06:45,880 --> 00:06:50,240 Speaker 1: new sports that we're bringing, speed climbing. That's so exciting 99 00:06:50,360 --> 00:06:53,280 Speaker 1: what's going on with the Olympics in addition to one 100 00:06:53,320 --> 00:06:56,440 Speaker 1: of the most exciting cities in the world. There's a 101 00:06:56,600 --> 00:07:00,800 Speaker 1: huge amount of enthusiasm and momentum for poll to tune 102 00:07:00,839 --> 00:07:05,280 Speaker 1: into what's happening in Tokyo, and and if you even 103 00:07:05,320 --> 00:07:11,160 Speaker 1: were reading, uh, you know, the paper. I don't want 104 00:07:11,200 --> 00:07:14,160 Speaker 1: to sound that in a traditional sense, but if you're 105 00:07:14,160 --> 00:07:16,760 Speaker 1: looking on Twitter or trying to be up to date, 106 00:07:17,040 --> 00:07:19,880 Speaker 1: if you even saw what Simone biles In and the 107 00:07:19,920 --> 00:07:25,400 Speaker 1: American women accomplished this past weekend, there's so much buzz 108 00:07:25,440 --> 00:07:28,920 Speaker 1: and momentum because the women's team, which is so exciting, 109 00:07:29,440 --> 00:07:36,000 Speaker 1: is definitely assumed and favored to win the most medals 110 00:07:36,040 --> 00:07:39,400 Speaker 1: of any women's team in US history, and it's probably 111 00:07:39,400 --> 00:07:41,960 Speaker 1: going to be likely the world. So there's so much 112 00:07:42,000 --> 00:07:46,160 Speaker 1: excitement and so much emotion about tuning into what's happening 113 00:07:46,280 --> 00:07:49,080 Speaker 1: at in Tokyo for the Olympics, that we couldn't be 114 00:07:49,120 --> 00:07:52,360 Speaker 1: more excited. And that enthusiasm is reflected with the advertisers 115 00:07:52,360 --> 00:07:54,800 Speaker 1: as well. So there'll be more buzz and ever more 116 00:07:54,920 --> 00:07:58,239 Speaker 1: audience than ever. Or is it a sure thing, however, 117 00:07:58,320 --> 00:08:00,800 Speaker 1: that this will be the most pro football games, the 118 00:08:00,840 --> 00:08:04,400 Speaker 1: most revenue ever, Because just because you have all that 119 00:08:04,440 --> 00:08:07,760 Speaker 1: inventory doesn't necessarily mean you're going to sell it well 120 00:08:07,800 --> 00:08:11,880 Speaker 1: I'm not here to report how we're pacing with our 121 00:08:12,120 --> 00:08:19,240 Speaker 1: advertising partners. That's okay, But there's many, many games of 122 00:08:19,400 --> 00:08:25,160 Speaker 1: data that proves the impact of being an advertising partner 123 00:08:25,240 --> 00:08:29,160 Speaker 1: during the Olympics. But what's most important when you advertise 124 00:08:29,240 --> 00:08:32,680 Speaker 1: in the Olympics, in addition to what could possibly be 125 00:08:32,679 --> 00:08:38,520 Speaker 1: better than the biggest, most dominant content over a seventeen 126 00:08:38,600 --> 00:08:44,720 Speaker 1: day period, that is a family event unique that's really 127 00:08:44,760 --> 00:08:48,280 Speaker 1: hard to find these days. That you also get to 128 00:08:48,280 --> 00:08:52,600 Speaker 1: wrap yourself up in the American flag and watch your 129 00:08:53,040 --> 00:08:57,640 Speaker 1: team compete globally. Okay, so that's just the emotion of 130 00:08:57,679 --> 00:09:00,120 Speaker 1: it all. I got chills what I was saying it, 131 00:09:00,160 --> 00:09:04,400 Speaker 1: and I'm assuming everyone listening would. But that being said, 132 00:09:04,440 --> 00:09:07,120 Speaker 1: when you're a marketer and you're able to share that, 133 00:09:07,600 --> 00:09:11,760 Speaker 1: there is an incredible halo effect that you take with 134 00:09:11,840 --> 00:09:16,040 Speaker 1: you after the closing ceremonies for a really long time. 135 00:09:16,880 --> 00:09:19,360 Speaker 1: And when you can go to an advertiser that says 136 00:09:19,440 --> 00:09:24,680 Speaker 1: a year later your brand is still associated with the Olympics, 137 00:09:25,720 --> 00:09:29,480 Speaker 1: that is a really meaningful thing. If it's not just 138 00:09:29,559 --> 00:09:33,479 Speaker 1: about the love of the Olympics, it's about there's absolutely 139 00:09:33,559 --> 00:09:39,400 Speaker 1: no surrogate for that. There's no surrogate to replace the 140 00:09:39,480 --> 00:09:43,200 Speaker 1: halo effect and the impact of the beauty and the 141 00:09:43,280 --> 00:09:47,439 Speaker 1: health and the dominance of the Olympics flight, which tell 142 00:09:47,480 --> 00:09:50,280 Speaker 1: me if I'm characterizing this wrong, it's an attempt at 143 00:09:50,320 --> 00:09:54,360 Speaker 1: a new measurement standard, which is you know, no small thing. 144 00:09:54,760 --> 00:09:59,360 Speaker 1: Well see fight simply moves the ball forward because it's 145 00:09:59,440 --> 00:10:06,880 Speaker 1: the first combined metric that takes all screen viewing into consideration. 146 00:10:07,320 --> 00:10:10,800 Speaker 1: So it takes your linear viewing and your digital viewing 147 00:10:11,400 --> 00:10:17,360 Speaker 1: by verified metric sources, whether it's Nielsen or com Score 148 00:10:17,480 --> 00:10:20,520 Speaker 1: or something else we can negotiate, determined by the client 149 00:10:20,640 --> 00:10:24,679 Speaker 1: or the agency, and combines all viewing over the duration 150 00:10:24,760 --> 00:10:29,160 Speaker 1: of a flight. Right. So see just for simple purposes 151 00:10:29,200 --> 00:10:32,600 Speaker 1: of transition, that that takes them to consider the linear 152 00:10:32,720 --> 00:10:37,400 Speaker 1: viewing that used to be C three right flight, meaning 153 00:10:37,720 --> 00:10:41,640 Speaker 1: what solely and only makes sense from an advertiser's perspective, 154 00:10:42,000 --> 00:10:44,840 Speaker 1: over the duration of their flight, are they achieving the 155 00:10:45,000 --> 00:10:49,320 Speaker 1: viewing metrics that they wanted to receive right or that 156 00:10:49,360 --> 00:10:53,400 Speaker 1: they wanted to achieve. So it's very logical that says, 157 00:10:53,440 --> 00:10:59,680 Speaker 1: if we're in an on demand, always on world, that 158 00:10:59,720 --> 00:11:02,760 Speaker 1: we should have a metric that does a really, really 159 00:11:02,840 --> 00:11:08,120 Speaker 1: better job and a currency that reflects consumer behavior. So, 160 00:11:08,240 --> 00:11:13,320 Speaker 1: for example, how illogical is it to even talk about 161 00:11:13,360 --> 00:11:19,240 Speaker 1: a C three when C three was invented over a 162 00:11:19,320 --> 00:11:26,760 Speaker 1: decade ago to compensate for DVR viewing and back then 163 00:11:28,440 --> 00:11:31,760 Speaker 1: it took about three days to get the viewership back 164 00:11:31,800 --> 00:11:34,600 Speaker 1: to one or back to even from what it was prior. 165 00:11:35,080 --> 00:11:38,160 Speaker 1: But just the mention of the DVR. I don't know 166 00:11:38,200 --> 00:11:41,360 Speaker 1: how many people are listening to this, but how many 167 00:11:41,360 --> 00:11:44,960 Speaker 1: people rely on just their DVR today for their viewing? 168 00:11:45,679 --> 00:11:48,120 Speaker 1: And Mike, what's your perspective on this? Where do you 169 00:11:48,200 --> 00:11:51,480 Speaker 1: see the sea flight of it all moving? Will we 170 00:11:51,760 --> 00:11:55,560 Speaker 1: even as soon as say upfronts, could we see ce 171 00:11:55,720 --> 00:11:58,880 Speaker 1: flight really start to make a mark. Yeah. I I'm 172 00:11:58,920 --> 00:12:02,320 Speaker 1: a big supporter of ce flight and the initiative behind it. 173 00:12:02,760 --> 00:12:06,640 Speaker 1: I think it solves for an industry problem uh that 174 00:12:07,360 --> 00:12:11,720 Speaker 1: frankly no one actually tackled before. Uh So, I think 175 00:12:12,200 --> 00:12:17,119 Speaker 1: sea flight could be that currency and measurement that potentially 176 00:12:17,160 --> 00:12:22,040 Speaker 1: displaces other types of model measurements models in the future. Um. 177 00:12:22,080 --> 00:12:25,199 Speaker 1: You know what's quite interesting when I look kind of globally, 178 00:12:26,080 --> 00:12:28,520 Speaker 1: one of the things our clients in other geographies are 179 00:12:28,520 --> 00:12:30,760 Speaker 1: trying to do is replicate s flight. That's one of 180 00:12:30,800 --> 00:12:34,240 Speaker 1: the biggest questions we get in our media and entertainment practice. 181 00:12:34,440 --> 00:12:37,280 Speaker 1: How can we do what NBC you did in our 182 00:12:37,320 --> 00:12:40,200 Speaker 1: particular geography. So you know, I say that as a 183 00:12:40,200 --> 00:12:43,840 Speaker 1: testament to the value of that model, that construct and 184 00:12:43,920 --> 00:12:46,280 Speaker 1: the value that it brings in terms of a measurement perspective. 185 00:12:47,000 --> 00:12:53,280 Speaker 1: I do think that the traditional measurement approaches are very 186 00:12:53,320 --> 00:12:56,599 Speaker 1: inadequate for the media business today, and it's going to 187 00:12:56,720 --> 00:12:59,640 Speaker 1: become even more inadequate as you move to more of 188 00:12:59,640 --> 00:13:04,080 Speaker 1: a multi platform flighting of campaigns. And so that's where 189 00:13:04,080 --> 00:13:06,920 Speaker 1: I think sea flight really stands out and shines in 190 00:13:06,960 --> 00:13:10,520 Speaker 1: the marketplace. I couldn't agree with particularly the last part 191 00:13:11,240 --> 00:13:14,160 Speaker 1: of your sentiments. Not that's where ce flight stands out. 192 00:13:14,200 --> 00:13:20,200 Speaker 1: But as the as technology evolves and the maturation of 193 00:13:20,360 --> 00:13:27,760 Speaker 1: data helps companies like NBC Universal become fully automated and 194 00:13:27,760 --> 00:13:31,240 Speaker 1: and that's on the very near term horizon, and I 195 00:13:31,320 --> 00:13:35,960 Speaker 1: mean automation in terms of commerce between NBC Universal and 196 00:13:36,000 --> 00:13:39,880 Speaker 1: our clients, whether it's clients direct or agencies. So so 197 00:13:40,000 --> 00:13:44,000 Speaker 1: the sophistication and maturation of data and technology as we 198 00:13:44,120 --> 00:13:49,920 Speaker 1: move to full automation, see flight may in fact evolve 199 00:13:50,000 --> 00:13:54,880 Speaker 1: into something else, because once we go to audience level 200 00:13:55,720 --> 00:14:00,600 Speaker 1: guarantees or other consumer targets or segments to our advertising, 201 00:14:00,600 --> 00:14:04,320 Speaker 1: and it could span the gamut from from a reach 202 00:14:04,440 --> 00:14:09,200 Speaker 1: guarantee to some type of business outcome, but solely an 203 00:14:09,240 --> 00:14:14,120 Speaker 1: age gender split over a period of time will be 204 00:14:14,640 --> 00:14:17,920 Speaker 1: archaic in a very short period of time. So to 205 00:14:18,000 --> 00:14:20,840 Speaker 1: your point in your words, C flight I think was 206 00:14:20,920 --> 00:14:24,760 Speaker 1: the impetus for change, right it said, Hey, the sun 207 00:14:24,840 --> 00:14:27,880 Speaker 1: still came up that day that C flight went into effect. 208 00:14:27,880 --> 00:14:31,720 Speaker 1: Oh my god, stuff still happened. And and and it 209 00:14:31,880 --> 00:14:35,760 Speaker 1: goes back to the Accenture study, which was the dominance 210 00:14:36,440 --> 00:14:42,000 Speaker 1: of the impact of advertising on premium content that marketers 211 00:14:42,160 --> 00:14:46,360 Speaker 1: know how valuable it is, the most valuable. We're just 212 00:14:46,440 --> 00:14:49,680 Speaker 1: not measuring it in the right way. And and what 213 00:14:49,840 --> 00:14:54,040 Speaker 1: does or did a g RP or a c C 214 00:14:54,400 --> 00:14:59,400 Speaker 1: three rating, what business purpose did it serve? It's outlived 215 00:14:59,440 --> 00:15:03,160 Speaker 1: its p so they're in lies, which by the way, 216 00:15:03,720 --> 00:15:09,200 Speaker 1: C flight was done in conjunction and supported by Nielsen 217 00:15:09,920 --> 00:15:14,480 Speaker 1: or with Nielsen, And I want to be clear. We 218 00:15:14,560 --> 00:15:18,320 Speaker 1: think it's just a part of a transition that once 219 00:15:18,440 --> 00:15:21,640 Speaker 1: the industry got permission to change, now we're going. Now 220 00:15:21,680 --> 00:15:24,120 Speaker 1: we're going full steam ahead. Yeah, and it seems like 221 00:15:24,120 --> 00:15:28,600 Speaker 1: you're saying Nielsen is along for the ride. They're necessary 222 00:15:28,640 --> 00:15:31,080 Speaker 1: to be part of this. I know in previous years, 223 00:15:31,560 --> 00:15:35,000 Speaker 1: you know, there's been less charitable assessments of Nielsen's role 224 00:15:35,040 --> 00:15:37,400 Speaker 1: in all this, but you seem to be evolving on 225 00:15:37,440 --> 00:15:41,320 Speaker 1: that front. Well, they're really trying to help their partners 226 00:15:41,520 --> 00:15:46,440 Speaker 1: catch up with consumer behavior. But you know, none of 227 00:15:46,560 --> 00:15:51,160 Speaker 1: us believe the marketplace is where it needs to be 228 00:15:51,160 --> 00:15:56,120 Speaker 1: because the consumer is generations ahead of us and how 229 00:15:56,320 --> 00:16:01,520 Speaker 1: they interact with our content on small, medium, and large 230 00:16:01,560 --> 00:16:05,440 Speaker 1: size screens over any period of time that they want, 231 00:16:06,000 --> 00:16:09,560 Speaker 1: and but very far away from that. So so we 232 00:16:09,640 --> 00:16:13,600 Speaker 1: know there's a tremendous amount of work to do, and uh, 233 00:16:13,960 --> 00:16:19,720 Speaker 1: we just honestly appreciate the finally the acknowledgement that it's 234 00:16:19,760 --> 00:16:21,600 Speaker 1: got to change, and everybody's trying to roll up their 235 00:16:21,600 --> 00:16:23,880 Speaker 1: sleeps and get it done. Well, isn't I'm sorry, Mike, 236 00:16:23,880 --> 00:16:26,120 Speaker 1: but isn't there also some urgency here, not just for 237 00:16:26,240 --> 00:16:28,960 Speaker 1: NBC Universal, but we're all involved. As we sit here, 238 00:16:29,360 --> 00:16:31,200 Speaker 1: I don't know, three or four weeks into a fall 239 00:16:31,280 --> 00:16:36,120 Speaker 1: TV season where the linear viewing levels it's astonishing, the 240 00:16:36,240 --> 00:16:40,240 Speaker 1: dropping across the board. We're assuming some of this stuff 241 00:16:40,280 --> 00:16:43,320 Speaker 1: is moving over to digital, you know, whether it's Hulu 242 00:16:43,440 --> 00:16:47,640 Speaker 1: or whatnot. But is that what's creating some urgency here 243 00:16:47,680 --> 00:16:50,800 Speaker 1: because that traditional C three number is going to go 244 00:16:51,160 --> 00:16:55,080 Speaker 1: very far down. Yeah, I would say, uh, there is 245 00:16:55,560 --> 00:16:59,480 Speaker 1: a viewership decline as you acknowledged um. And I think 246 00:16:59,600 --> 00:17:03,440 Speaker 1: the you know, our view of C flight or whatever 247 00:17:03,600 --> 00:17:08,240 Speaker 1: measurement approaches is used in the future actually becomes more expansive. 248 00:17:08,359 --> 00:17:10,879 Speaker 1: So I think Linda alluded to this a bit. We 249 00:17:10,960 --> 00:17:15,320 Speaker 1: actually see a C flight measurement type model, you know, year, 250 00:17:15,440 --> 00:17:18,639 Speaker 1: two years, five years from now, that not only takes 251 00:17:18,640 --> 00:17:22,480 Speaker 1: in the traditional measurement metrics that you you have today, 252 00:17:22,520 --> 00:17:26,359 Speaker 1: but it measures engagement in an entirely different way. And 253 00:17:26,480 --> 00:17:30,400 Speaker 1: right now, the the advertising, sales and buy models are 254 00:17:30,440 --> 00:17:33,600 Speaker 1: not aligned with the measurement models, and I think as 255 00:17:33,680 --> 00:17:36,320 Speaker 1: you end engagement models, so I think once you see 256 00:17:36,320 --> 00:17:39,200 Speaker 1: all those things begin to converge, you're going to actually 257 00:17:39,320 --> 00:17:43,119 Speaker 1: have a measurement that really aligns around a consumer. What 258 00:17:43,160 --> 00:17:45,440 Speaker 1: are they doing, where are they at in their journey 259 00:17:45,600 --> 00:17:48,360 Speaker 1: in in a day, what device are they are And 260 00:17:48,440 --> 00:17:52,239 Speaker 1: that's how a C flight type measurement really allows a 261 00:17:52,280 --> 00:17:56,359 Speaker 1: marketer to really understand that behavior, target that behavior, and 262 00:17:56,440 --> 00:18:00,280 Speaker 1: present an AD that has an impact. So I think, um, 263 00:18:00,359 --> 00:18:02,199 Speaker 1: you know that's where it's gonna go. Going back to 264 00:18:02,280 --> 00:18:05,560 Speaker 1: your question, I don't think, and Linda could keep me 265 00:18:05,600 --> 00:18:07,920 Speaker 1: honest here, I don't think sea Flight was worn out 266 00:18:08,000 --> 00:18:12,480 Speaker 1: of the need to capture audience share a measurement that 267 00:18:12,560 --> 00:18:16,480 Speaker 1: was shifting. I don't think that was the the primary impetus. 268 00:18:16,520 --> 00:18:19,360 Speaker 1: I think it was more about really capturing the behavior 269 00:18:19,400 --> 00:18:22,280 Speaker 1: of the consumer where they're at, not let's do this 270 00:18:22,359 --> 00:18:25,359 Speaker 1: because audience is declining. I don't know. Well, I'm gonna 271 00:18:25,480 --> 00:18:28,800 Speaker 1: challenge the last two or three minutes of the conversation, 272 00:18:28,840 --> 00:18:35,320 Speaker 1: including the question, which is is that viewership is declining. 273 00:18:35,800 --> 00:18:40,919 Speaker 1: Viewership behavior is changing. Okay, So if you start in 274 00:18:40,920 --> 00:18:44,840 Speaker 1: the macro of it all, including all the streaming services 275 00:18:44,880 --> 00:18:46,919 Speaker 1: that exist today and all of them many more of 276 00:18:46,960 --> 00:18:51,919 Speaker 1: them are going to exist tomorrow, the reality is viewership 277 00:18:52,040 --> 00:18:55,800 Speaker 1: is at an all time high, all time high overall 278 00:18:55,920 --> 00:18:59,560 Speaker 1: in the macro. When you boil it down to what's 279 00:18:59,600 --> 00:19:03,639 Speaker 1: happened in one day, part on four, or if you 280 00:19:03,720 --> 00:19:08,080 Speaker 1: count five networks for a couple of hours of every day, 281 00:19:08,560 --> 00:19:10,560 Speaker 1: the only thing you really need to do is spread 282 00:19:10,600 --> 00:19:13,080 Speaker 1: it out over a period of time because as I'm 283 00:19:13,080 --> 00:19:17,360 Speaker 1: sitting here as the the the very fortunate person who 284 00:19:17,359 --> 00:19:22,960 Speaker 1: gets to represent stuff like Sunday Night Football, check the 285 00:19:23,000 --> 00:19:26,280 Speaker 1: box numbers up all NFL across the board, check the 286 00:19:26,280 --> 00:19:30,399 Speaker 1: box or no problem there, because live in the moment, 287 00:19:31,000 --> 00:19:33,639 Speaker 1: we need to know what happened with a piece of 288 00:19:33,680 --> 00:19:38,600 Speaker 1: content that inspires action, right, sometimes yelling, crying, screaming, but 289 00:19:38,840 --> 00:19:43,520 Speaker 1: fantastic competition and emotion. Then you have other things like 290 00:19:44,680 --> 00:19:47,280 Speaker 1: this is us that if you look at the linear 291 00:19:47,400 --> 00:19:50,399 Speaker 1: viewing that on average for last season, and I'm not 292 00:19:50,440 --> 00:19:52,760 Speaker 1: going to get it exactly right, but let's say on 293 00:19:53,000 --> 00:19:56,639 Speaker 1: average every over each episode, you were looking at an 294 00:19:56,680 --> 00:20:00,359 Speaker 1: average of thirteen million people. It's a lot of people. 295 00:20:01,119 --> 00:20:04,040 Speaker 1: But when you linear viewing, but when you add in 296 00:20:04,280 --> 00:20:07,760 Speaker 1: all screen viewing and you go up, if you want 297 00:20:07,800 --> 00:20:10,399 Speaker 1: to use your metric, you went from a three and 298 00:20:10,600 --> 00:20:14,879 Speaker 1: change rating to almost a six rating when you added 299 00:20:14,960 --> 00:20:20,200 Speaker 1: in Hulu and the NBC one app Uh So you're 300 00:20:20,240 --> 00:20:24,520 Speaker 1: picking up three, four, five rating points over a period 301 00:20:24,520 --> 00:20:26,720 Speaker 1: of time for an episode because that's when the consumer 302 00:20:26,800 --> 00:20:30,359 Speaker 1: chose to see them. So I that's what C Flight 303 00:20:30,800 --> 00:20:34,200 Speaker 1: was about. But but when I go to sea flight. 304 00:20:34,600 --> 00:20:37,280 Speaker 1: You know, there are frustrations with that because you're still 305 00:20:37,680 --> 00:20:41,920 Speaker 1: just measuring the number of people that you're taking the 306 00:20:42,000 --> 00:20:46,320 Speaker 1: best guests at who consumed your content over period of time. 307 00:20:47,280 --> 00:20:55,560 Speaker 1: But what Mike said was behavior. It is only scratching 308 00:20:55,600 --> 00:21:00,119 Speaker 1: the surface on behavior and only scratching the surface of 309 00:21:00,640 --> 00:21:04,240 Speaker 1: who exactly was watching and what they do. So when 310 00:21:04,240 --> 00:21:07,959 Speaker 1: you talk about behavior your life is a new car buyer, 311 00:21:08,200 --> 00:21:11,080 Speaker 1: are they in the market for a car? Are they 312 00:21:11,240 --> 00:21:15,840 Speaker 1: first timers, first car, first child? Because I was gonna 313 00:21:15,840 --> 00:21:18,360 Speaker 1: say first marriage. You hold that everything is always had. 314 00:21:18,880 --> 00:21:24,359 Speaker 1: But um so, so there's a behavioral approach to television 315 00:21:24,840 --> 00:21:27,760 Speaker 1: that's becoming a tidal wave of view because what the 316 00:21:27,840 --> 00:21:30,880 Speaker 1: marketers know, what networks know. When you are in an 317 00:21:30,840 --> 00:21:35,000 Speaker 1: ant supported ecosystem and you put your content next to 318 00:21:35,080 --> 00:21:38,639 Speaker 1: a commercial, there's nothing more powerful than that. It's just 319 00:21:38,840 --> 00:21:43,159 Speaker 1: why we or how we came out of a upfront 320 00:21:43,280 --> 00:21:49,479 Speaker 1: market place season that was record breaking again it was 321 00:21:49,760 --> 00:21:53,840 Speaker 1: it was really a watershed market in many ways. One 322 00:21:54,000 --> 00:21:59,320 Speaker 1: little way was digitally native companies, whether they directed consumer 323 00:21:59,400 --> 00:22:04,919 Speaker 1: brands or the social platforms, flocked to television, displacing what 324 00:22:05,160 --> 00:22:08,600 Speaker 1: used to be you know, uh age old from day 325 00:22:08,600 --> 00:22:12,159 Speaker 1: one of television advertisers because there wasn't enough inventory to 326 00:22:12,200 --> 00:22:16,120 Speaker 1: go around. So the power is there. The power is there, 327 00:22:16,119 --> 00:22:18,919 Speaker 1: back to the study. So so I think we have 328 00:22:19,000 --> 00:22:22,440 Speaker 1: to stop kidding ourselves and it's not enough versus them. 329 00:22:22,480 --> 00:22:27,199 Speaker 1: It is how do we remodel the monetization of the 330 00:22:27,200 --> 00:22:33,040 Speaker 1: most powerful and supported ecosystem that exists today with nothing close. 331 00:22:33,840 --> 00:22:35,880 Speaker 1: So that's what we feel our job is. That's what 332 00:22:35,920 --> 00:22:39,280 Speaker 1: we feel our job is. It's why there's more content 333 00:22:39,320 --> 00:22:42,880 Speaker 1: being made now than ever because that inspires the heart 334 00:22:42,960 --> 00:22:45,800 Speaker 1: center of human beings, and we intend to make sure 335 00:22:45,880 --> 00:22:48,400 Speaker 1: that it's a supported for a long time to come. 336 00:22:48,640 --> 00:22:50,800 Speaker 1: Another area of innovation I wanted to touch on was 337 00:22:50,840 --> 00:22:53,960 Speaker 1: addressable TV advertising. You guys are out there, you know, 338 00:22:54,080 --> 00:22:57,480 Speaker 1: going up against you know, the digital media guys who 339 00:22:57,720 --> 00:23:01,800 Speaker 1: have great targeting capabilities and all at but you're no 340 00:23:01,920 --> 00:23:07,399 Speaker 1: slouches yourselves through initiatives like project or add smart. So 341 00:23:07,440 --> 00:23:10,120 Speaker 1: give us an update there in terms of how you're 342 00:23:10,160 --> 00:23:15,520 Speaker 1: continuing to improve. Want sure, So I'll give you kind 343 00:23:15,520 --> 00:23:18,359 Speaker 1: of a broad based shot on it. I mean, um, 344 00:23:18,480 --> 00:23:20,879 Speaker 1: what's quite interesting is when you think about the technology 345 00:23:20,960 --> 00:23:25,720 Speaker 1: capabilities that Comcast NBCU has had and others have had. Uh, 346 00:23:25,760 --> 00:23:28,680 Speaker 1: they really hadn't been utilized well in the past. And 347 00:23:28,760 --> 00:23:33,480 Speaker 1: what we're now seeing is this um drive to really 348 00:23:33,520 --> 00:23:37,200 Speaker 1: think through how do we better utilize those those assets 349 00:23:37,320 --> 00:23:40,439 Speaker 1: that the information that we have on the customer, the 350 00:23:40,480 --> 00:23:43,919 Speaker 1: holmes pass, the the equipment to set top boxes or 351 00:23:43,920 --> 00:23:47,240 Speaker 1: other consumer premises equipment that we have, the data that 352 00:23:47,280 --> 00:23:49,640 Speaker 1: we have in our systems. We're seeing a lot more 353 00:23:49,720 --> 00:23:53,720 Speaker 1: energy around that to really utilize that. Uh. You know, 354 00:23:54,080 --> 00:23:55,719 Speaker 1: I would say more about the m v pds than 355 00:23:55,760 --> 00:23:58,720 Speaker 1: anybody right now. UM, and what we've seen, I'll just 356 00:23:58,720 --> 00:24:00,880 Speaker 1: give you kind of broad based facts. I mean, we've 357 00:24:00,920 --> 00:24:03,400 Speaker 1: seen in some cases when you can get that right, 358 00:24:03,640 --> 00:24:08,280 Speaker 1: you're we're seeing high double digit to triple digit CPM 359 00:24:08,320 --> 00:24:10,600 Speaker 1: increases when you can do that right. Yeah, when you 360 00:24:10,600 --> 00:24:13,960 Speaker 1: could do it right. The reason for that, you're taking 361 00:24:14,000 --> 00:24:17,520 Speaker 1: the fat out of a TV plan, right, So you're 362 00:24:17,520 --> 00:24:21,400 Speaker 1: taking the fat out of it and there's less waste, 363 00:24:22,000 --> 00:24:25,400 Speaker 1: meaning more yield. And it's great CPM increases, But when 364 00:24:25,400 --> 00:24:28,080 Speaker 1: you look at it, which is most important from the 365 00:24:28,119 --> 00:24:32,080 Speaker 1: marketer and the consumer perspective, the consumers getting the right 366 00:24:32,119 --> 00:24:35,760 Speaker 1: ad and the marketer is getting more bang for their buck. 367 00:24:36,080 --> 00:24:40,760 Speaker 1: Out of that ad. So really everybody is much happier. 368 00:24:40,880 --> 00:24:44,159 Speaker 1: And you bring up because everyone's business is improving, the 369 00:24:44,240 --> 00:24:48,080 Speaker 1: consumers experience is improving, the marketer is cutting fat out 370 00:24:48,080 --> 00:24:50,920 Speaker 1: of their plan and and in in many cases can 371 00:24:50,960 --> 00:24:56,040 Speaker 1: save money or actually run more spots to drive more sales. 372 00:24:56,440 --> 00:25:01,760 Speaker 1: And then the companies, the publishers, the have more inventory 373 00:25:01,840 --> 00:25:05,640 Speaker 1: to sell to other people. So so it's it really 374 00:25:05,880 --> 00:25:11,639 Speaker 1: is a much improved model or ecosystem in that sense. 375 00:25:11,920 --> 00:25:15,360 Speaker 1: But I would say that with your question that says, 376 00:25:15,400 --> 00:25:17,560 Speaker 1: you know, and it's true to battle it out with 377 00:25:17,359 --> 00:25:19,720 Speaker 1: the with the social platforms that have you know, good 378 00:25:19,720 --> 00:25:26,200 Speaker 1: targeting and stuff, the the game changing difference with addressable 379 00:25:26,280 --> 00:25:34,560 Speaker 1: at scale challenges or what will surface what is less valuable? 380 00:25:35,440 --> 00:25:42,320 Speaker 1: Uh content right? Less? I would say content that doesn't 381 00:25:42,440 --> 00:25:48,040 Speaker 1: deliver the return for the marketer like premium content does. 382 00:25:48,400 --> 00:25:50,840 Speaker 1: That being said, I never sit here and say it's 383 00:25:50,960 --> 00:25:54,639 Speaker 1: us or them right, because it's a complete mix. It 384 00:25:54,760 --> 00:25:58,760 Speaker 1: has to be an enriched mix of a media schedule, 385 00:25:59,160 --> 00:26:03,159 Speaker 1: because the con sumer just doesn't watch one screen or 386 00:26:03,280 --> 00:26:06,760 Speaker 1: one channel or is on one social platform at a time. 387 00:26:07,119 --> 00:26:09,199 Speaker 1: I just think we're on the other side of the 388 00:26:09,359 --> 00:26:13,280 Speaker 1: shiny new toy syndrome, and now we know and addressable 389 00:26:13,400 --> 00:26:18,639 Speaker 1: is really exposing that strength of if you get commercialization 390 00:26:18,840 --> 00:26:23,639 Speaker 1: right in an addressable world on premium content business circuit. 391 00:26:23,800 --> 00:26:27,480 Speaker 1: And just one of the questions we get often about 392 00:26:27,520 --> 00:26:31,000 Speaker 1: addressability is what we call lit versus drag. So how 393 00:26:31,119 --> 00:26:33,239 Speaker 1: is the market going to be respond And I just 394 00:26:33,359 --> 00:26:37,680 Speaker 1: because I now can target very specific consumers and pay 395 00:26:37,680 --> 00:26:40,800 Speaker 1: a premium, do I spend more overall? Or do I 396 00:26:40,840 --> 00:26:43,560 Speaker 1: cut my spend down? That is the question we get 397 00:26:43,720 --> 00:26:46,600 Speaker 1: worldwide when it comes to address ability, you know, and 398 00:26:46,640 --> 00:26:49,760 Speaker 1: so you know there there is this question, Um, we 399 00:26:49,800 --> 00:26:55,480 Speaker 1: don't want there to be a trade off targeting versus scale, right, 400 00:26:55,520 --> 00:27:00,440 Speaker 1: And it's also something that that dogs the the tech 401 00:27:00,480 --> 00:27:04,680 Speaker 1: platforms i'll call them, because you reach a ceiling when 402 00:27:04,720 --> 00:27:07,879 Speaker 1: you own as a marketer or a brand when you 403 00:27:08,080 --> 00:27:13,240 Speaker 1: only invest in performance based marketing, because whether you had 404 00:27:13,280 --> 00:27:16,160 Speaker 1: some brand awareness at the beginning, it starts to deteriorate 405 00:27:16,520 --> 00:27:18,560 Speaker 1: or you just hit your head on the ceiling of 406 00:27:18,600 --> 00:27:21,560 Speaker 1: performance because you're not investing in your brand. So that's 407 00:27:21,560 --> 00:27:24,120 Speaker 1: when I go back to it's not us or them, 408 00:27:24,160 --> 00:27:29,119 Speaker 1: it's a combination of media to really deliver the most 409 00:27:29,240 --> 00:27:32,760 Speaker 1: value to a marketer. And and again you have to 410 00:27:32,800 --> 00:27:37,040 Speaker 1: be be have your eye on address ability. You never 411 00:27:37,160 --> 00:27:41,760 Speaker 1: wanted to to be an exchange for scale. So what 412 00:27:41,800 --> 00:27:45,600 Speaker 1: you're talking about, whether it's or which is in partnership 413 00:27:45,640 --> 00:27:48,960 Speaker 1: with Canoe or open ap or what Xander's doing or 414 00:27:49,000 --> 00:27:54,360 Speaker 1: what Comcast is doing, that's addressable. That's an addressable marketplace 415 00:27:54,440 --> 00:27:58,320 Speaker 1: on at scale. We just need to figure out how 416 00:27:58,359 --> 00:28:01,560 Speaker 1: to stitch opportunities together so it's easier for the marketer 417 00:28:01,720 --> 00:28:05,159 Speaker 1: to invest in it. That's exactly well, it sounds like 418 00:28:05,240 --> 00:28:08,040 Speaker 1: there is. Uh, it's an understatement to say there's a 419 00:28:08,040 --> 00:28:11,600 Speaker 1: lot going on here on the advertising innovation space. And 420 00:28:11,640 --> 00:28:13,919 Speaker 1: we'll just have to continue to check in with you 421 00:28:14,000 --> 00:28:19,560 Speaker 1: both and see that's always good. Thanks to you both 422 00:28:19,560 --> 00:28:24,119 Speaker 1: for coming in, Thank you for for having us. This 423 00:28:24,280 --> 00:28:27,560 Speaker 1: has been another episode of Strictly Business. Tune in next 424 00:28:27,600 --> 00:28:32,040 Speaker 1: week for another helping, accintillating conversation with media movers and shakers, 425 00:28:32,200 --> 00:28:35,000 Speaker 1: and please make sure you subscribe to the podcast to 426 00:28:35,160 --> 00:28:38,960 Speaker 1: hear future episodes. Also leave a review in Apple podcast 427 00:28:39,160 --> 00:28:40,160 Speaker 1: let us know how we're doing.