Hollywood stars

Why a 1% change in online grocery sales matters; Hollywood stars must learn to love ad revenue shares

Here’s today’s roundup of AdExchanger.com news… Want it by email? Register here.

The Growth category

Online grocery sales were down 1% in August from a year ago, according to a annual follow-up by Brick Meets Click.

But there is a lot going on in that 1%.

The online grocery opportunity is still big, and some of the hottest programmatic players right now — including Instacart, Walmart, Target, and Kroger — are all here, as are many technology vendors.

And the 1% year-on-year slip is unsurprising, given that the pandemic was still roaring into 2021.

But also in that 1% there is evidence of a tectonic shift in the way people shop online: home shipping has fallen from $2.5 billion in August 2020 to 1.4 billion dollars now.

Still, delivery sales (think bike delivery) or buy-to-order and pick-up-in-store (BOPIS) grew by $1.4 billion in combined sales from 2020.

BOPIS is a saving grace for programmatic because it creates online conversions that tie in-store purchases to affiliate or performance marketing campaigns.

Retailers prefer BOPIS because it is cheaper than home delivery.

On the other hand, BOPIS poses a challenge to retail media. Dozens of brands or sellers can bid on online searches for “stacks”, “ginger ale” or “trail mix” seeking to reach people placing home delivery orders (a la Amazon) – while even large stores like Target don’t offer this many products at a category level to allow bidding on every impression.

The video killed the…movie star?

Amazon and Paramount are in a dispute (but not in court) over how to split profits on streaming platforms, Bloomberg reports.

Paramount, NBCUniversal, Disney and others have moved from licensing their shows or movies to other channels to store content in their own subscription libraries. In the past, licensing profits were often built into Hollywood contracts. But this system doesn’t translate well to media streaming.

“Top Gun: Maverick,” for example, was a smash hit in Paramount theaters. But a big part of its value to Paramount is that it also got people signing up for Paramount+ or watching the ad-supported tier.

But even if ticket sales are low, which the “Top Gun” sequel wasn’t, that doesn’t mean a movie was necessarily a flop. It could still attract an audience that would later convert to subscribers and could end up generating ad revenue for a streaming platform for years to come.

Box office sales and DVD sales were a relatively clean way to split the profits. Streaming complicates things.

Soon, however, it will be common for major Hollywood deals to include advertising revenue rights and subscription performance goals, much like how studios and celebrities haggle over merchandise or ticket sales.

Prove it

The measurement changes. Advertisers struggle with attribution on new platforms like TiKTokand Google even recently created its own panel to shed light on his conversion patterns.

And now, the Media Rating Council has finally finalized its standards for measuring results and data quality.

The final standardspublished on Wednesday, gives outcome-based measurement providers a benchmark they can use to seek accreditation of multi-touch attribution and market composition modeling approaches.

More than 100 media organizations from across the media and marketing ecosystem contributed to the development of the standards, including the ANA and the 4As.

The MRC says companies should track “robust and demonstrable” KPIs, and that conversions should be “directly observable or inferred based on behavior using empirical approaches”.

The MRC also sets some pretty firm boundaries around the use of the data.

“The source and nature of datasets, as well as details of collection parameters, should generally be disclosed to users.” That’s what the MRC guidelines say.

But wait, there’s more!

Amazon then tackles the home electronics sector. [WSJ]

British media lost $120 million in a publicity blackout after the Queen’s death. [Insider]

YouTube is testing higher ad loads on connected TV. [Mobile Dev Memo]

Mark Penn’s Stagwell holding company has launched a “risk and reputation unit” made up of financial experts and bipartisan political strategists to help C-suite leaders navigate political, social and political issues. [release]

TikTok has updated its political policies so candidates and political parties can post organic content — but they still can’t advertise or hold ad platform accounts. [blog]

Content licensing for three of Vox Media’s verticals will soon be handled by Wright’s Media, an agency that works with publishers to grow their licensing businesses. [Digiday]

You are engaged!

Tremor International appoints Chance Johnson as Chief Commercial Officer. [release]

Pacvue taps GroupM vet Andrew Ruegger as SVP of Solutions. [release]

OpenX appoints Matt Sattel as senior vice president of buyer development for the US and EMEA region, and promotes Sandra Fawaz to vice president of activation. [release]

GroundTruth appoints Brandon Rhoten Chief Marketing Officer. [release]