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LinkedIn Courts Auto Advertisers With Affluent Audience

8/29/2013

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by Mark Walsh, Tuesday, August 27, 2013

As LinkedIn evolves from a job networking site into a professional publishing platform, it wants to expand its ad base as well beyond the B2B category. To that end, the company is touting research indicating the site’s audience is a natural fit for auto advertisers.
 
In the last few months, LinkedIn says it has added brands such as Nissan and Mercedes to a roster of auto advertisers that already includes Volkswagen and Jaguar. What’s attracting them? LinkedIn says its members are twice as likely to be in-market car buyers, with 35% planning to buy in the next 12 months compared to 15% for the general population.
 
They are also more likely to be high-end buyers, with 42% of LinkedIn members spending more than $30,000 on their last vehicle. That all goes back to the demographic profile for LinkedIn users, who are twice as likely to have a household income over $100,000 and to have a college degree. They are also more likely to seek out auto information online.
 
LinkedIn also makes the case that car purchases are tied to “professional events” such as a change of jobs, promotion or graduation that align with the site’s user base. According to its June survey of 1,005 LinkedIn members, 31% of in-market buyers’ purchases were triggered by such events.
 
Furthermore, more than a third (34%) of in-market buyers said their impressions of an auto brand were positively impacted by content shared on LinkedIn. Considering that LinkedIn conducted the survey itself, the results should be taken with a grain of salt.
 
A LinkedIn spokesman adds that the company has dozens of auto advertisers and that automotive is now its third-largest advertising category.
 
The company, which reported $85.6 million in advertising revenue in the second quarter, doesn't break out ad spending by category, but said auto has been growing steadily. In a separate report released Tuesday, eMarketer estimated that LinkedIn’s overall revenue this year would rise almost 47% to $376 million, in part from higher ad sales.
 
But it also points to comScore data showing that time spent on the site has been flat in the last year, “an indication that LinkedIn’s new content offerings have not yet led to increased usage.” The study notes that LinkedIn is popular among marketers, especially B2B companies, and the percentage of technology advertisers (in North America) using LinkedIn had doubled between 2010 and 2012.
 
The eMarketer report didn’t refer specifically to auto advertising on LinkedIn, but it did quote Volkswagen executive Raashee Gupta, saying the company has done “a good job when it comes to display and targeting, but video is an opportunity that would be nice for them to offer.”


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Paid-Search Ads Driving More Traffic Than Organic

8/29/2013

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Paid-search visits accounted for one-third of total search engine visits to ecommerce Web sites in the first half of 2013, up from 26% in the prior year. Revenue from paid search grew to 44% of total search engine visit revenue -- up from 40%, respectively, according to a study.

The MarketLive Mid-Year Benchmark report aggregates performance data based upon real-world buying behavior of millions of online consumers generating more than $1.5 billion in annual sales. In this report, MarketLive's Performance Index analyzes search engine metrics, and mobile and tablet trends. The key finding points to paid search rapidly supplanting organic search.

Paid search engine visits led to 2.6% more conversions, compared with organic at 1.9%. The average order site from paid search was $113 vs. $109.66 from organic, and drove 7.1 pages per visit vs. 6.8 pages, respectively. The percentage of new visits to a Web site rose for organic during the first half in 2013 compared with 2012. Paid-search ads drove 58% of new visits, whereas organic drove 66%.

Analysis of mobile and tablet trends show tablets leading 33% of all traffic to customer Web sites the first half of this year. Tablet traffic grew three times faster than smartphones; and revenue grew eight times faster. On smartphones, the average "add-to-cart" rate rose 15%, but fell on tablets and desktops. Smartphone conversions remain low, but improved by 24%, about four times greater than desktop.

The findings estimate that at current growth rates, mobile and tablet traffic will account for nearly half of all Web site visits within the year.

Overall, revenue across all sectors that MarketLive supports rose 14.8% during the first six months of 2013, compared with the first half of 2012. Web site visits from search engines rose 10.9%, respectively. While the average conversion rate rose 2.29%, the average order size fell 1.5% to $151.51; abandoned carts declined 1.2% to 72.1%; and abandoned checkouts dropped 3.0% to 40.1%.

As merchants head into the upcoming holiday season, they must have strong search strategies on smartphones and tablets to compete. The report suggests that marketers must think beyond the home page, make it easy for consumers to convert with fewer clicks, build in quality content and build out multi-device options.

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Fandango Makes Quantum Leap

8/29/2013

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Comcast Buys Movie Ticket Promotions Firm 

Comcast’s online ticketing giant Fandango said it is purchasing Quantum Loyalty Solutions, an Incline Village, Nev.-based firm that creates promotions linked to movie ticket sales. Terms of the deal were not disclosed.

According to the companies, the deal allows Fandango, which sells theater tickets for U.S. chains with more than 21,000 screens, to expand its existing promotional movie ticket and gift card business. Quantum owns Hollywood Movie Money, a widely recognized movie currency that is accepted at more than 36,000 screens across the country.

"The marriage of Quantum's promotions business and Fandango's ticketing platform will offer unprecedented new opportunities for studios, exhibitors and brands to engage with millions of moviegoers," Fandango president Paul Yanover said in a statement. "We look forward to working with the Quantum team to build on Hollywood Movie Money's momentum and help drive even more movie fans into theaters."

In a statement, the companies said the transaction will make Hollywood Movie Money currency more convenient for consumers, as many rewards will now be redeemable through Fandango's website and mobile apps, which are visited by more than 41 million moviegoers each month. Consumers redeeming Hollywood Movie Money rewards will also be able to purchase additional movie tickets for their friends or family who are accompanying them to the theater.

With the addition of Quantum, Fandango expands its reach to more than 95% of U.S. theaters, as well as many theaters in major international markets.


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Twitter Buys Trendrr

8/29/2013

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Acquisition Boosts Twitter’s Social TV Strategy, Comes About 8 Months After Twitter Formed Partnership With Nielsen

By: Jeff Baumgartner Aug 28 2013 

Twitter has acquired Trendrr, a five-year-old firm based in New York that specializes in tracking TV-focused social media activity and counts clients such as ABC, MTV, Telemundo and Univision, for an undisclosed sum.

Twitter’s acquisition of Trendrr, which tracks Twitter as well as Facebook traffic, comes about eight months after  Twitter inked a multiyear partnership with Nielsen aimed at delivering a syndicated-standard metric to measure social TV audiences billed as the “Nielsen Twitter TV Rating.” Twitter and Nielsen originally targeted a commercial rollout for the fall 2013/2014 TV season.

“Having sat at this intersection of TV and social media for years, we’ve analyzed data from lots of platforms,” Trendrr CEO and former Sony Music USA exec Mark Ghuneim said in a blog post announcing the deal. “What makes Twitter uniquely compelling among these platforms is its connection to the live moment — people sharing what’s happening, when it’s happening, to the world. We think we can help amplify even stronger the power of that connection to the moment inside of Twitter.”

He said Curatorr, Trendrr’s Twitter-certified product, will work with media companies, marketers and “display ecosystem partners” and help to continue the pursuit of Trendrr’s “initial charter of focusing on the real-time aspects of TV and media.”

“We intend to honor existing partner contracts for Trendrr.TV but we do not plan to establish new ones going forward,” Ghuneim added.


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Comcast Tests EA-Powered Game Service for X1 Platform

8/28/2013

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MSO Develops iPad App That Controls ‘Console-Quality’ Games Delivered to X1 Set-Tops
By: Jeff Baumgartner Aug 28 2013 - 2:11pm

Comcast is testing a service that essentially turns the set-top running the MSO's new IP-capable X1 platform into a gaming console that is fed by Origin, Electronic Arts’ Web-based game delivery service. 

Comcast hasn’t formally announced the trial, but the MSO’s group in Silicon Valley has built and released an iPad app that turns the Apple tablet into a game controller. According to information posted on iTunes, the free, 77-megabyte 1.0 version of the app was released on August 13. 

As described by the iTunes app page, the pilot offering, called Xfinity Games Powered by Origin, “delivers console-quality video games from Electronics Arts directly to your television using your Comcast X1 set-top box. You can access a catalog of available games through the XFINITY Games powered by Origin web storefront. After launching a game from the web storefront, this app instantly turns your iPad into the controller.”

Comcast was not immediately available Wednesday to comment on the trial, so it is not clear who is eligible for the trial, how many customers are testing it now, and when the MSO might look to turn Xfinity Games into a commercial product.

But the trial offers evidence of the kind of third-party services and  potential, new revenue streams Comcast envisions for X1, a next-gen video platform that features a cloud-based navigation system, advanced search features,  and a Google Chromecast-like “Send to TV” component (still in beta) that lets users fling Web-sourced videos to the TV screen using a PC, tablet or smartphone. Comcast’s coming “X2” upgrade will add more personalization, support in-home TV streaming to mobile devices, and a cloud DVR product.

It was not immediately known if Comcast is offering the trial in all its X1-enabled markets. Comcast hasn’t disclosed how many customers are on the new platform, but the MSO has deployed X1 to more than half its footprint, including systems serving Atlanta; Philadelphia; Washington, D.C.; Houston; Chicago; Denver; Seattle; and Baltimore (a current list of X1 deployment markets can be found here). The MSO plans to roll out X1 to most of its footprint by the end of the year. 

Comcast’s trial also marks a further blurring of lines between set-top boxes and gaming consoles, which have rapidly morphed into IP video delivery systems. Just this week, Time Warner Cable launched an authenticated app for the Xbox 360 that delivers up to 300 live TV channels from the MSO’s subscription video service. Sony, meanwhile, is rumored to be developing a “virtual” MSO service as it prepares to launch the PlayStation 4 on November 15. 

The idea of a set-top doubling as a game console goes back more than a decade. In 2001, Pace, which happens to make the hybrid IP/QAM HD-DVR that Comcast is using for the initial rollout of X1, built aprototype set-top/gateway that integrated Sega Corp.’s Dreamcast console. Pace never rolled it out commercially, but it provided an early glimpse at a set-top/console combination.

Comcast’s trial with EA also delivers a flash of nostalgia for The Sega Channel, the long-defunct subscription service that used cable connections and a specialized adapter to download game titles to  the 16-bit Sega Genesis console. The Sega Channel, originally backed by Time Warner Cable and Tele-Communications Inc. (now part of Comcast), was shut down in 1998
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NCC Adds Dish, Ups TV Inventory

8/28/2013

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NCC Adds Dish, Ups TV Inventory
by Wayne Friedman, Tuesday, August 27, 2013

National cable rep NCC’s big system to amass local cable, satellite, and telco inventory has added a big player -- Dish Network.  The 14-million-subscriber satellite network has joined I+ (Interconnected Plus), an effort by NCC which started in 2011. Before this deal, NCC Media reached more than 80 million, cable, telco and satellite homes, amounting to 200 million consumers.

The Dish agreement will add over 3 million advertising impressions to those of Comcast, Cox and Time Warner Cable in 25 of the largest U.S. markets. Dish’s addressable technology enables zone-targeted TV commercials to be stored in DVR-enabled set-top boxes, allowing for the insertion of ads in local breaks across multiple cable networks.

The Dish piece of the existing I+ platform will be operational in late 2013.

NCC’s I+ effort stems from cable interconnects — where multiple cable operators pool their inventory in big markets.
Warren Schlichting, senior vice president of ad sales for Dish Network, stated: “By gaining access to the country’s third-largest pay-TV provider’s customers, local and national spot TV advertisers can now speak with millions of consumers who were simply not accessible before.”


"Watching TV" photo from Shutterstock.


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7 of 10 Adults Have High-Speed Connection

8/27/2013

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7 of 10 Adults Have High-Speed Connection Wireless Narrows Digital Divide, but May Not Count as Broadband: Study
By: John Eggerton Aug 26 2013

WASHINGTON — About 70% of U.S. adults (aged 18 or over) have a high-speed broadband connection at home — a number that’s closer to 80% when factoring in wireless broadband over smartphones, according to a new study.

That means just 20% have neither wired nor wireless broadband as of May 2013, according to the latest survey results from the Pew Research Center's Internet and American Life Project.

As in previous surveys, the highest rates of home broadband adoption continue to be among urban whites, college graduates, those under 50 and those who earn $50,000 per year or more.

The study also found that more than half of all Americans (56%) now have smartphones that "may" offer an alternative to wired Internet access. The survey also found that one in 10 respondents with a smartphone had no home high-speed broadband connection.

When those users are factored in, about 80% of adult Americans have some type of Internet access available at home other than low-speed, dial-up service.

Wireless is helping to bridge the digital divide between white consumers and minority groups, the survey suggested.  

"While blacks and Latinos are less likely to have access to home broadband than whites, factoring in their use of smartphones nearly eliminates that broadband 'gap,' Pew said.

But the jury is still out as to wireless — which has yet to match wired broadband in terms of connection speeds — is a suitable substitute. "[I]t is unclear whether 3G or 4G smartphones qualify as ‘broadband’ speed, or if smartphones can otherwise offer the same utility to users as a dedicated high-speed home Internet connection," the study authors said, explaining why smartphone users didn’t fall within their definition of a broadband user.

Princeton Survey Research Associates conducted the telephone survey of 2,252 adults 18 or older between April 17 and May 19. Its margin of error was 2.5 percentage points for the full study group and 2.3 points for Internet users.


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Out-of-Home Continues Revenue Upswing

8/27/2013

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Out-of-Home Continues Revenue Upswing
by Erik Sass, Monday, August 26, 2013 

Out-of-home advertising revenues increased 5% from around $2.1 billion in the second quarter of 2012 to just under $2.2 billion in the second quarter of 2013, according to the latest figures from the Outdoor Advertising Association of America.

This marks the 13th straight quarter of growth for out-of-home, which has posted steady year-over-year increases since the second quarter of 2010.

Top OOH growth categories in the second quarter included miscellaneous services, restaurants and retail, while the list of top advertisers spanned categories from luxury to fast food, including Diageo, StubHub, Jack in the Box, Chipotle, 7 Eleven, Apple Stores, Netflix, Tiffany and Chanel.

In the first quarter of the year, outdoor ad revenues increased 4.5% from $1.4 billion to $1.5 billion, for total revenues of $3.7 billion in the first half of the year. That’s a slightly faster pace than the overall growth rate of 4.2% in 2012, when the OAAA tallied total annual revenues at $6.7 billion.

The out-of-home advertising business continues to benefit from a number of trends, including the rise of digital out-of-home, which allows out-of-home advertisers to display multiple messages, sell outdoor inventory by dayparts, and integrate mobile to boost engagement and measure the impact of outdoor ads more precisely.

Major changes are also afoot in the out-of-home business, including CBS Outdoor’s plans to convert the company into a Real Estate Investment Trust -- an idea now being considered by Lamar Advertising. New competitors are trying to break into established markets, with Titan Air taking on incumbents Clear Channel Airports and JC Decaux.

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Facebook Forges Ahead With Mobile Rich Media Ads Via PointRoll Agreement

8/26/2013

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Facebook Forges Ahead With Mobile Rich Media Ads Via PointRoll Agreement
by Tyler Loechner, Thursday, August 22, 2013 


Mobile advertising represented roughly 41% of Facebook's ad revenue during Q2 2013, and the social media giant appears to have its sights set even higher. Facebook and Gannett-owned PointRoll are expected to soon announce an agreement that will bring more rich media ads to Facebook's mobile News Feed.

In June, Online Media Daily reported that rich mobile ads are more engaging on social-networking sites compared to the same ads on regular mobile sites. The article cited data from Celtra, and wrote that "rich media ads running in the Facebook and Twitter apps had an interaction rate of 55.2%, four times that of the same ads on standard mobile sites. Time spent interacting with ads was nearly double in social media, with an average of 53 seconds versus 32 seconds on other sites."

Rich media ads on Facebook's app already exist, but Todd Pasternack, PointRoll's VP of digital innovation and product strategy, argued that PointRoll's history is what will set their offering apart. "We've been doing this for 13-plus years," he asserted.

Mario Diez, CEO of PointRoll, said: "What's different about the Facebook mobile environment is that if the brands build the right type of engagement, and it is served within an environment that people are used to engaging with and interacting with, we see really good performance of the media." Pasternack added: "What's great about this is that it maintains the feel of Facebook."

While both Diez and Pasternack seemed to beat around the bush, Facebook didn't shy away from using the word "native" when talking about the agreement. Anurag Gulati, Facebook partner manager, PMD Program, said: "Facebook's native format and large photo ads in News Feed -- the most engaging part of Facebook -- sets our mobile ads apart." He added: "Mobile rich media lets brands create ad experiences that allow for multiple levels of content in one placement: videos, games, shares, etc."

Because the Facebook Exchange (FBX) isn't available on the app yet, all of the mobile rich media ads are the result of direct buys through Facebook's platform for mobile News Feed.

PointRoll and Facebook have an existing relationship on desktop, and Pasternack indicated that this agreement is part of Facebook's mobile-first strategy."We've been right there with them as they shift to mobile to make sure we would help support that strategy," he said.

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What is the Value of Made-for-Web vs. Linear TV Video?

8/26/2013

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Whirlpool’s KitchenAid brand rolled out three of its first made-for-web video spots this past July on Hulu as part of its “There’s So Much More to Make” campaign. Colleen Whitney, senior vice president and media director for Chicago and San Francisco at DigitasLBi, spoke with eMarketer’s Danielle Drolet about the KitchenAid digital effort, as well as advertisers’ increasing curiosity to align original, made-for-web ad creative with exclusive web programming.

eMarketer: When is a brand right for and ready to activate a made-for-web video ad format?

Colleen Whitney: KitchenAid, in particular, has a highly engaged audience that is very targeted. It’s an upper-income woman who has a passion for expressing herself through cooking. This, coupled with the core insight that these consumers are looking for the tools to inspire and help them achieve that passion, led us to the idea that we can create highly engaging content for this narrow audience—and deliver it in a very targeted and contextually relevant way that will increase engagement and return on investment.

eMarketer: Why are these video spots a likely next step for brands beyond linear television?

Whitney: Consumers are hungry for more online content, whether that’s premium-produced content from publishers or brand-produced content that’s relevant to a particular consumer group. There continues to be increased demand, as well as time spent with that content online. We are encouraging our brand clients to play in that space in a strong way.

We look at it in a couple of different ways, either partnering with the publishing community to create the content or, such as in the case with KitchenAid, create exclusive content for our clients. It comes in a couple of different models for us, but we certainly believe there is a huge opportunity.

eMarketer: Do you have any metrics to share for the KitchenAid campaign?

Whitney: It’s only been in the market for a couple of weeks, and we don’t have specific metrics for this effort yet. Anecdotally, we are seeing a lift in social sharing and conversation around the video, as well as the associated content that’s being put out. There is a whole series of associated custom recipes, as well.

“Across the industry, about 10% of the digital budget is going to online video. But many of our clients are already spending more than this.”

The primary role of online video for this brand is to drive brand lift. The measurement plan includes looking at both attitudinal and behavioral metrics. For attitudinal metrics, we’re looking at brand studies to check lift post-exposure. Then, from a behavioral perspective, we’re looking at the in-view experience, which includes monitoring completion rates, engagement with interactive companion banners, and so forth. We are also looking at brand site engagement metrics such as looking at attribution modeling to understand how online video is going to assist in driving conversion.

eMarketer: Are marketers looking to increase spending in made-for-web video ads?

Whitney: Without a doubt our clients are going to increase spending on online video overall. Across the industry, about 10% of the digital budget is going to online video. But many of our clients are already spending more than this. It’s at a tipping point, where dollars are going to start to follow the consumer time spent.

Within that we will increase investment in made-for-web content because the quality gets better and better. When we use it, we see positive lift in engagement metrics. The key, though, is that the online publishers have to continue to help us drive the model by investing in the discoverability of the programming. It’s important that we continue to increase the scale and reach. Online video is growing, but it’s still behind in reach compared with linear television.

eMarketer: How does an ad buy differ for a made-for-web show vs. a linear TV show?

Whitney: There is a big cost differential between the full episode players (FEPs) vs. made-for-web video content. FEPs can be as much as 50% or 60% higher from a cost-per-impression perspective. In addition, when you look at industry research, Tremor Video reported earlier this year that the results are virtually the same for made-for-web content and TV content online. It was looking at things like clickthrough and ad completion.

“Online video is growing, but it’s still behind in reach compared with linear television.”

However, we have found for some of our advertisers, and again, they’re in more vertical categories, that awareness measures are indeed equitable. Engagement metrics such as clickthrough and activity around high-value tasks are better for the short-form, midtier content than they are for the FEPs. These are based on studies via DART Logic.

eMarketer: Will the recent Emmy nod for Netflix’s “House of Cards” for best drama series present more opportunities for brand marketers?

Whitney: We are watching Netflix very closely, as is everyone else in the industry. There are two big impacts to date based on what it is doing. It is really raising the bar for the standard of quality for online original programming. There is no doubt about it. It took HBO 25 years to get its first Emmy nomination. It took Netflix six months.

Netflix also has this deal with DreamWorks Animation, which is a game changer in terms of the quality of the content that’s going to continue to come into the online ecosystem. But the other element is that it is changing the distribution model, which means we need to ensure we’re driving discoverability of this high-quality content.

Netflix’s move to release all of its episodes simultaneously is different from the linear TV model, and it changes consumer expectations. It’s only a matter of time before we figure out ways for brand marketers to partner with and capitalize on this.

eMarketer: On Hulu in particular, ad loads are getting heavier, yet these ads are more repetitive than on TV. Does this need to be discussed more?

Whitney: Yes. Clutter is a big issue. Historically, one of the benefits of advertising with online video vs. linear TV was that it offered an environment that was less cluttered, which is detrimental to key metrics like awareness as well as brand and message recall. It’s key to be mindful of frequency capping in addressing clutter on behalf of consumers.

It’s also about looking at creating more ad executions and creating truly compelling ad executions, such as the KitchenAid video, to engage consumers. It’s a numbers game, but it’s also about the quality of the content brands are putting out there that engages consumers—so you don’t drive them away.

eMarketer: Besides streaming platforms, what opportunities are there in gaming platforms? Microsoft is planning on creating its own original video programming for Xbox, which could potentially carry ads.



“Clutter is a big issue. … It’s key to be mindful of frequency capping in addressing clutter on behalf of consumers.”


Whitney: All of our clients are really interested in what Xbox is doing and how you can use the gaming platform as a marketing effort. Xbox is positioning itself as more of an entertainment destination and less of a specific gaming platform. We’re interested in the Kinect technology and the opportunity it provides to build native interactive brand experiences.

Xbox is still in the development phases in how this all comes together with original content as a pillar, but it is making a huge investment—in talent as well as in infrastructure. We’re watching it closely.

eMarketer: What are clients’ concerns when considering made-for-web video ads?

Whitney: At a high level, it still can often be a decision between linear TV dollars and online video dollars. The historical momentum behind what we know works on linear TV sometimes causes clients to pause. At the end of the day, dollars are finite, and we have to make decisions about where to invest in various channels.

We get many questions about the efficacy of online video vs. linear television. That said, within the online video environment, there are a couple of things we discuss a lot with clients. It’s a very complex marketplace with FEPs, online originals, endemic short-form [content], live streaming of events, multiple players, ad networks, and so forth. Frankly, it’s not easy to buy. A challenge we have put forth to publishers is to partner with us to make it easier to buy for our clients. We will all win in that scenario.
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