Hello,Welcome to your weekly Advertising and Media Insider newsletter, where we catch you up all the big stories we worked on this past week.The direct-to-consumer boom was a big theme in our reporting. It's become conventional wisdom that for these born-on-Facebook companies to get to the next level, they'll have to buy television, with its ability to introduce products to a new, mass audience. This week I surveyed how the TV giants like NBCUniversal and CBS are trying to change their hidebound practices to sell advertising to these companies.
- TV companies are eager to portray themselves as well positioned to capture DTC dollars, with dedicated sales teams and pitches around addressable TV, shoppable ads, and branded content.
- Yet TV still is a big hurdle for many DTC companies that are used to low-cost, performance-based advertising.
- Today, DTCs represent a scant 3% of TV advertising, but it's only poised to grow, having doubled over the past two years.
- The big question is how popular the tools will be, given growing concerns about online privacy.
- Ad experts think the Facebook move could have a bigger impact on advertisers because it would limit their ability to target people based on all their browsing data that Facebook collects.
- These moves could strengthen the incumbent titans Facebook, Google, and Amazon and make it easier for them to take credit for advertising's effectiveness.
- Pepsi's diversifying its portfolio to products like Bubly and Lifewtr.
- It's trying to be disruptive like Burger King and Domino's.
- After its Kendall Jenner ad fiasco of 2017, Pepsi is working more closely with its agencies.
5G has been more hype than reality so far, but it's set to gather steam in the year ahead. Abby Jackson rounded up the changes to expect from the wireless carriers:
- Verizon says it will have launched 5G coverage in 30 US cities by the end of the year. AT&T says it will have nationwide 5G service in early 2020. Sprint is rolling out in nine cities by June.
- But experts say AT&T's and Verizon's plans to use higher-frequency spectrum is expensive and can be hard to access inside buildings.
- 5G's promise of bringing cheaper products to consumers is still several years off.
An Accenture Interactive exec says it's 'time to put the checkbook away' after its string of acquisitions including Droga5
Accenture Interactive has snapped up a series of marketing-oriented companies to become a stronger competitor to ad agencies. Now it's going to focus on using those companies to help businesses with advertising and more. The company sees itself playing a bigger role as marketing gravitates toward data, automation, and artificial intelligence, Tanya reported.
Here are other stories in tech, media, and advertising you should check out:A new report shows HBO's big weakness as it battles Netflix and Disney in the streaming warsInside Amazon's battle to kill an unprecedented shareholder revolt over facial recognitionA Warner Bros. exec explains the data behind licensing shows like 'Friends' to Netflix here.