Publication Date: December 3, 2018

2019 Predictions

What changes will happen in marketing and media in 2019?Brands are always looking for the most powerful ways to reach audiences across screens, and 2019 will be no exception. As marketers continue this quest, changes in media and marketing will create opportunities – or leave those unprepared saying “Houston, we have a problem.” Launching into 2019, 4C predicts six meteoric shifts that marketers should be ready for:

Keep reading for more on how these industry changes will take shape and how marketers can take advantage of them.

Amazon Advertising annual revenue reaches $10 billion

Stories make up 10% of total social media advertising revenue

Facebook spins out Watch into its own app

Netflix signals to Wall Street that advertising is coming

2 DTC brands join the top 15 TV advertisers

The US begins working on its own GDPR-like legislation

©2018 4C Insights, Inc.

COMMERCE UNITES WITH SEARCH

Amazon Advertising annual revenue reaches $10 billion2019-style shopping means that the majority of purchases start and end on Amazon. Nearly half of product searches begin with the e-commerce giant, and the company is on track for another year of record-breaking sales. Brands are starting to follow the consumer’s precision-search lead, with 2019-style marketing increasingly involving placements directly on Amazon. This is why we predict that Amazon Advertising will reach the $10 billion milestone in 2019, propelled by API integrations with companies like 4C that help brands make the most of their Amazon ad efforts.

Amazon advertising presents a unique opportunity for brands since the ecosystem includes and focuses on a point of sale. As brands look to promote awareness and consideration of their products to consumers likely to make a purchase, advertising in the environment where they will likely both search for the product and buy it allows for a powerful closed-loop experience.

GRANT PARKER, 4C SVP SALES

144.5%PROJECTED YoY

REVENUE INCREASE

$4.61BPROJECTED 2018

AMAZON AD REVENUE

©2018 4C Insights, Inc.

Source: eMarketer

Amazon advertising presents a unique opportunity for brands since the ecosystem includes a point of sale. As brands look to promote their products to consumers likely to make a purchase, advertising in the environment where they will likely both search for the product and buy it is a logical first step.

GRANT PARKER, 4C SVP SALES

DYNAMIC VIDEO IS EVERYWHERE

Social advertising revenue from Stories doubles across platformsBetween Facebook, Instagram, and Snapchat, social media users are spending more and more time engaging with Stories across platforms. As this trend continues, these platforms are also expanding how marketers can leverage Stories to reach their audiences, with solutions like Shoppable Advertising on Instagram and Snapchat’s reach and frequency tool. We also expect Stories to expand within Facebook Messenger, WhatsApp, and other social and mobile platforms including YouTube. With a promising outlook for Stories at scale, digital media companies and marketers alike will continue to invest in them.

While Stories are a highly-engaging format, they’re most effective when creative is developed with their format in mind. Instead of repurposing existing creative, marketers will be better off ensuring that creative is built to the vertical format of Stories.

ANUPAM GUPTA, 4C CPO

INCREASE IN INSTAGRAM STORIES AD SPEND THROUGH 4C FROM JANUARY TO AUGUST 2018.

104%

©2018 4C Insights, Inc.

Source: 4C Insights

PUBLISHERS BUILD FOR FUTURE GROWTH

Facebook spins out Watch into its own appFacebook is taking its place as a holding company through the expansion of its portfolio of platforms and content that allow for cross-platform experiences. One giant leap the company will take in expanding their content offerings this year is spinning off Watch into its own app. By positioning Watch as a standalone video platform, Facebook will present more original content than we’ve ever seen from the company, and along with it, new opportunities for brands to reach their audiences in a premium environment.

Facebook’s focus right now is to increase the time existing users spend on their platform, and Watch is a huge opportunity for growth.

In creating a standalone environment for long-form content, Watch will give brands the opportunity to make meaningful connections with their audiences through new and expanded advertising formats.

SEIF HAMID, 4C SVP, STRATEGIC OPERATIONS

5 MONTHSELAPSED TIME AFTER LAUNCH OF FB WATCH

BEFORE 40% OF USERS REPORTED WEEKLY VIEWING

©2018 4C Insights, Inc.

Source: Business Insider

PLATFORMS EXPERIMENT WITH MONETIZATION

Netflix signals to Wall Street that advertising is comingNetflix has an unprecedented amount of viewership data and has already proven they can use it to develop content they know will be successful. Now they have the opportunity to leverage that data to create new monetization opportunities for brands. Any ads from Netflix aren’t likely to be traditional 15 or 30 second spots, but will more likely leverage dynamic ad insertion technology, possibly for product placement in original content. While 4C doesn’t anticipate formal advertising to go live in 2019, strategic hires or notes in earnings statements will signal to Wall Street that an advertising offering is on the horizon.

With the ability to create highly-targeted, highly-engaging brand experiences, when Netflix brings their ad offering to market, they’ll have marketers chomping at the bit.

LANCE NEUHAUSER, 4C CEO

30-40%Tradtional TV Networks

80%Netflix

DATA-FUELED ORIGINAL CONTENT SUCCESS RATE

©2018 4C Insights, Inc.

Source: Orcan Intelligence

DATA OPENS THE TV GATEWAY

2 DTC brands join the top 15 TV advertisersAs advanced TV solutions continue to grow, data is becoming ingrained in the linear planning and buying process, allowing it to take on the more precise, targeted nature of digital advertising. This convergence of TV and digital is opening the gateway to upper-funnel ad formats like TV for direct to consumer brands, which already dominate digital advertising. Whether it’s through intelligent use of advanced TV advertising or strategic acquisitions on the part of traditional brands, direct to consumer brands will enter into the TV game this year in a big way.

Direct to consumer brands are primarily digital natives, and they’ve spent their time perfecting data-driven marketing. As they help propel advanced TV advertising forward with the strategies they’ve learned from digital. Traditional TV powerhouses will need to look to these same digital strategies to keep up.

ALOK CHOUDHARY, 4C FOUNDER AND CHIEF SCIENTIST

©2018 4C Insights, Inc.

27% TV Spend Increase in 2017

52% 2017 Increase in Revenue

Source: Digiday

HELLO FRESH HITS $1 BILLION IN REVENUE

OPT-IN IS THE WAY FORWARD

The US begins working on its own GDPR-like legislationCalifornia has already passed its own data protection laws and we foresee the US beginning steps towards federal legislation as well. While passing such legislation is unlikely with a divided Congress, it’s a good time for brands to start preparing for the inevitable by ensuring everyone in their database has opted in. Brands will have to face a new reality where the use of third-party data is restricted, and those brands that have leveraged first-party data in the past will be set up to succeed. Direct to consumer brands have already mastered data-driven advertising with first-party consumer data, and traditional brands will need to take a page out of their book in order to adapt, whether it’s through building in-house media capabilities or, more likely, taking a more active role with their agencies and tech vendors.

Regardless of legislation around consumer data, an emphasis on first-party data is smart for any brand. There’s no better way to reach your consumers than to use your own data and understanding of your audience in your advertising efforts.

AARON GOLDMAN, 4C CMO

11 StatesOTHER THAN CALIFORNIA, INTRODUCED NEW DATA PRIVACY LEGISLATION IN 2018.

©2018 4C Insights, Inc.

Source: Data Protection Report

ABOUT 4C4C is global marketing technology company that delivers a unified platform for audience discovery, media execution, and performance analysis. Leading brands, global agencies, and media owners trust the Scope by 4C™ platform to identify their most valuable audiences and reach them across channels and devices. With nearly $2 billion in annualized advertising spend running through Scope, 4C enables self-service activation on Amazon, Apple News, Facebook, Instagram, LinkedIn, NBCUniversal, Pinterest, Snapchat, and Twitter as well as TV synced ads via display, search, social, and video. The company also provides paid, earned, and owned media analytics leveraging its Teletrax™ television monitoring network which detects over 400 million TV asset airings on an annual basis. Founded in 2011 and based in Chicago, 4C has staff in 16 worldwide locations across the United States, United Kingdom, the Netherlands, France, Hong Kong, India, Singapore, and the Philippines. Visit www.4Cinsights.com for more information.

©2018 4C Insights, Inc.