Media agencies on Nine's slick upfront, CPM-based TV buying, content

Chris Pash
By Chris Pash | 16 September 2021
 
Mike Sneesby.

Media agencies, despite the lockdown-voided upfront afterparty, are buying what Nine has to sell. 

This year's virtual pitch presented Nine as "Australia’s media company," with its broadcast, digital and print assets. 

Nine unveiled a strong content set (including adding the tennis US Open) at its annual Upfront. 

And the media player is moving, as total television -- with linear, streaming and catchup -- becomes a reality, to make buying television advertising spots via its Galaxy platform more like booking a digital ad using CPM as a cost measure. 

TV has historically been bought based on a rate card. Media buyers or brands will book 30-second spots at a time and programming to fit. 

“Don't get me wrong, there is still a role for that,” Michael Stephenson, Nine's chief sales officer, said in answer to a question from AdNews. “But increasingly, it's going to be automated. 

“You and I will have a negotiation, we will agree on a cost per 1000, and then we will deliver that cost per 1000 whether it's delivered on television, or via livestream, or on demand. 

“So we'll simplify the way in which total television is bought.” 

Seb Rennie, GroupM's chief investment officer, says the developments in Nine's Galaxy platform pave the way to transition to a CPM-based buying model for off peak and multi-channel creating consistency with streaming and on demand pricing. 

"This is a positive which better reflects the evolving nature of content consumption across total TV and audio in addition to the opportunity to ease some of the transactional challenges in regional, off peak and multi channels," he says.

"The use of VOZ to transact across all these TV channels platforms is ambitious given the industry is still in a test and learn phase of the new currency.

"Our Finecast team have been working tirelessly to test the data and with their view of the total TV ecosystem deliver a strong alternative to trading BVOD."

The media team at cummins&partners had a group chat running throughout the presentation.

"One thing brought the chat screen to life for the more experienced traders of TV - the extension of the Galaxy platform," says Paul Murphy, chief media officer at cummins&partners.

"For outsiders it might seem like a small step, but as the channels and spot lists required to reach audiences at scale expand, trusted and effective automation is a highly-lauded leap into the future.

"Nine announced the ability for Galaxy to automate trading across linear, livestreaming, BVOD and regional TV. Beyond simple time saving, this will save on the potential for errors. Something that will endear Nine in metro and regional markets.

"On the Galaxy front, additional trading promises were added. The extension into audio, for linear, digital and podcasting. And to bring it all home, access to live availability of Network spots in real time for television. Something that is unexpected, as it is generally thought to be a negotiation card a sales team would want to maintain close to their chests.

"Nine Entertainment now have a massive 14 million unique identity files. Last year we heard that this was accessible for data matching through their Adobe partnership (but at a minimum spend threshold).

"In 2022 an additional partnership with Salesforce has been added. Given the popularity of Salesforce amongst marketing teams, this is likely to be a great area for growth in 2022 as more clients look to test the leveraging of their first-party data in market before the end of cookies forces their hands.

"Whilst the data play is powerful, Nine have extended the offering with live dashboards through Datorama and their promise to hire multiple data scientists. This might not be as appealing in market as the clients that have gone to the trouble of investing in first-party data should have also explored visualisation tools and hiring of people that can utilise them."

Craig Cooper, chief investment officer, Carat: “The importance of total audience (as in broadcast radio plus streaming, and TV linear audiences plus live streaming and on-demand). For me, the Total TV positioning was the most interesting of all announcements from Nine in the Upfronts, and if they can truly deliver on this element, the end benefits for advertisers will be significant.

“The devil may be in the detail, however, as historically there have been limitations in allowing us to transact peak inventory on the main channel via galaxy and logistically how will they be able to provide spot level post analysis in this fashion leveraging VOZ data - hopefully this will become clearer prior to 2022.

“Total TV, or Converged TV, is the nirvana and Nine is taking a leadership position in this space. It’s clear that consumer behaviour has shifted and the lines have become blurred between linear and digital video consumption. Some practical aspects of this evolution will be how TV media auditors can catch up and be able to analyse and report in this fashion - as historically, linear and digital video reporting has remained isolated.” 

Ben Willee, Spinach general manager and media director: "Here we are back in the upfronts season.

"Some media buyers are devastated they don’t have to get on a plane to Sydney to attend a fancy event and talk about expensive lunches with other media buyers. Some delighted.

"No doubt the bean counters at Nine are over the moon they don’t have to fork out for a gala event for two thousand of their favourite clients including an indoor Ferris wheel.

"Jam packed into one hour we have more emotive adjectives than a thesaurus was an update on what’s coming from Australia’s biggest media company. Perhaps the only media company that can include a drunk MAFs contestant and Kevin Rudd’s apology to the Stolen Generation in one montage.

"There’s no doubt Nine has a very solid base for 2022 with a few new programs and plenty of proven formats.

"Integrating WIN TV into the sales team is a big deal and will provide efficiencies to already time poor agencies and may be a catalyst for more consolidation in the sector.

"And for those technology lovers like me, plenty of opportunity to integrate data and deliver addressability at scale."

Seb Rennie at GroupM: "This was the first Nine Upfront under new CEO Mike Sneesby, and he delivered a confident evolution of the Nine proposition and opportunities for advertisers. There was a theme of consistent delivery of the content slate and established technology and data platforms with evolutions in each area.

"The integration of the WIN regional sales team into the broader sales structure is an opportunity to place more focus on the population growth in regional markets with a more integrated national buy. It also allows Nine’s sales teams to gain a better understanding of our clients’ business objectives and allows us to be more agile & flexible with shifting market priorities."

Paige Wheaton, Mindshare national head of investment: "Evolving the upfront format in a virtual world is no easy task, but Nine brought their signature polished professionalism. The introduction of creating audience connection via the live Q&A was impactful and gave us a timely reminder of how vibrant and passionate our industry is.

"Maintaining a consistent theme, Nine continue to showcase that they’re the partner to deliver outcomes via technology, scale and connection. With the convergence of their ecosystem now in full force, this narrative shone through in a way that drives authentic opportunity for our clients. In the broad spectrum of driving Good Growth for our clients at Mindshare, these pillars resonate in how we help our clients achieve their wildest ambitions.

"Nine are listening to the market; bringing 9Galaxy to WIN is a gamechanger for regional television and expanding their data partnerships with Salesforce are two key takeouts, however the ability of VOZ to transcend the transactional is ambitious (but welcomed!)." 

Jodi Fraser, commercial director, Publicis Media Exchange: "Nine is going into 2022 with a really strong backbone of successful, returning tentpoles and reality shows. This has now been mixed with a few new programs that seem a little more niche and a little more daring. I love that Underbelly is returning and the direction they are taking with that franchise.

"However, what I’m really excited about is the organisational change coming for the business - the combined sales team for regional and metro TV, and the ability to buy the whole of Australia in one transaction. As buyers, we have been waiting for this level of simplicity for a long time. Additionally from a digital standpoint, Nine has continued to develop its BVOD strategy with more data and more BVOD-led program releases, and the addition of Salesforce to their stack, which allows their product to keep improving and stay current.

"It’s always great to see great examples of what Powered can do and the breadth of opportunity Nine has to integrate across all their properties."

Paul Murphy, chief media officer at cummins&partners, says Nine for the second year in a row took a different angle than expected.

"Instead of leading with future TV programming as the jewel in the crown, they chose a business partner and multi-platform content approach," he says.

"Big early themes were news and diversity of representation for all Australians. With a push towards news leadership over TV, print, radio and digital, with the new angle of the diversity of opinions to suit more Australians.

"With a network spanning many formats, channels and markets, it is great to hear Nine leverage this ability for advertisers in a way that matters. The ability to align with content over multiple channels to follow consumers and passions that align with marketing strategies. It feels like Nine have successfully merged their network of properties, which will benefit clients looking to engage at scale efficiently.

"Although programming ran towards the rear of the presentation, Nine didn't under cook the entertainment value. Sport and reality TV lead the schedule. And there is plenty to tune into. Beauty and the Geek is back, along with Married at First Sight and Love Island. Adding to this is Parental Guidance. Given all of the parental judgment we should have coming out of COVID, this could be a hit!

"The Underbelly franchise is back, but this time with its first female lead. The story is fresh and it is great to see strong Australian-made drama."

Steve Allen, director of strategy and research at Pearman, says Nine has a more challenging job conducting and all-in upfront, because of its spread of assets.

"This year they improved this comprehensive pitching, very slick, right on the money, and consistent with the strategic path they have been embracing and promoting to the marketplace," says Allen.

"Many multifront improvements, especially in targeting and technology.

"Our primary focus out of this is TV programming. In this there was a little less than 2021, however 2021 has been a good success for Nine with only a few stumbles. Our regret is that the expensive and ratings risky scripted series Drama has seemingly taken a dive; no Doctor Doctor (known), nor Amazing Grace. Nine also did not pitch Procedural Reality.

"Feels like a solid year, but maybe a bit light on new content, but they do have a solid cupboard of proven winners.

"What Seven and TEN offer in coming weeks, will see how much pressure Nine are under."

Nik Doble, head of trading, OMD Melbourne: "The programming and talent cavalcade that has long defined an upfront was relegated to understudy for Nine’s 2022 edition, as the scale of their addressable audience regardless of content, and now apparently market and channel, took centre stage. A necessary change of tact as Nine pursues the ‘Australia’s media company’ mantle and continues to set its sights on the global tech giants.

"Unsurprisingly, tried and tested formats returned to underpin Nine’s 2022 line-up, with the most notable new additions including another swing at the cooking format with Snack Masters, and what appears to be a rival to MAFS in the controversy stakes with Parental Guidance.

"After breaking ground with their Adobe partnership announcement in 2021, the introduction of Salesforce will be the jewel in Nine’s 2022 data crown, signalling a more agnostic future and greater accessibility to their claimed 14 million addressable audience across all channels via Nine’s Audience Match product.

"The importance of total audience (as in broadcast radio plus streaming, and TV linear audiences plus live streaming and on-demand).

"Undoubtedly the ability for media partners to offer a seamless cross-platform high reaching solution is of appeal to advertisers and agencies, but critically for Nine and an audience-led buying model for all broadcasters, is a credible and robust cross-platform measurement tool. While Voz is a long-awaited step in the right direction, there is still a way to go."

Sarah Keith, group managing director, Involved Media and Active International Australia: "The strong integration of all the Nine brands were part of an emotional and evocative open to Nine’s Upfront for 2022, ensuring that the messaging from Nine felt different this year. Positioning itself as 'Australia’s Media Company', it was clear that TV, print, radio and digital were going to get equal billing in the audience eco-system that Nine presented.

"Leading with news and focussing on truth, reliability and authentic information was a smart move in these strangest of times. The power of Pedestrian’s audience featured prominently and was the most noticeably diverse offering.

"Nick Young presented a compelling data story, promoting the well-established Adobe data partnership and a new deal with Salesforce, sending a strong message that Nine can easily integrate with existing martech.

"The TV content section had a definite “Still the one” feel, although the new show Snack Masters feels like a mash-up of formats designed specifically for product integration! The strong support for VOZ, the merger of the metro and regional sales teams and greater clarity around the Galaxy planning, buying and post analysis tool all made sense. I’m not convinced AM radio is the ultimate source of super consumers, but apart from that, I am definitely buying what Nine is selling." 

Michelle Tempest, client solutions director, Half Dome: "Starting the same way most of us start our day – with news – was a smart move that highlighted upfront Nine’s credibility and authenticity in the media landscape.

"They clearly looked to showcase the scale of their network which shone through with the breadth of channels, brands and programs covered.

"I must say I was a fan of how they introduced the television section. It did the job of reinforcing the strong role television plays in building brands and the influence the medium has, whether it’s watched on linear or connected TV. There were some new programs in the mix but the majority was consistent with their previous direction, renewing fan favourites. A solid strategy, sure, but I was more interested in their updates in the data space and the e-commerce innovation demonstrated with a shoppable Sunday Life.

"Their continued focus on data wasn’t a surprise and their new partnership with Salesforce is sure to be a big win for brands already integrated with the platform.

"Pairing Nine’s scale with their mix of data partners makes them a strong competitor for the duopoly that is Google and Facebook. This felt particularly timely as we’ve seen rates across social networks rising this past year, which could serve as more reason for agencies alike to relook at their plans and consider the value a brand like Nine now offers."

Craig Cooper at Carat: “The Nine Upfronts this year was an impressive production - they really nailed the virtual format. Interestingly they chose to start with their News suite of assets, which given the past year we have all endured was a smart move and showed the power of their multi platform credentials in this space.

“From a programming POV, Nine delivered a very safe slate for next year with a focus on tweaking their tried and tested formats like The Block, Ninja, MAFS etc. This consistently may help to stabilise any audience declines seen this year.

“However they have been able to add some seemingly topical new content such as Buying Byron, Snack Masters and Country Home Rescue. In particular, the resurrection of Underbelly that will focus on the intriguing story of Melissa Caddick that was heavily editorially reported on this year, should be a ratings winner.

“The announcement of the partnership with Salesforce proves that Nine weren’t happy to just rely on their partnership with Adobe to aid in capturing the addressable market. It is a powerful combination and given the explosion of Salesforce as a key first party data and CRM partner for many clients over the past two years, this will be welcome news to clients.

“Liana Dubois signalled that Nine were looking to adopt an Attention factor in their trading metrics, and we (dentsu) are fully supportive of this intuitive having launched the Attention Economy study in 2019. We understand that consumer attention differs vastly across different devices and platforms, and are excited to see how Nine can integrate this philosophy into their ecosystem."

Mark O’Brien, director, Saintmobmedia: "The Nine upfronts was a typical polished presentation demonstrating the broad reach of 'Australia's media company' pushing a leadership position across TV, Radio, Print and Digital with 14 million in the database.

"They are very impressive with their presentation, their latest tech delivery and ability to satisfy all clients, across all demographics in all media. They certainly jammed plenty into the 1hr 15mins. I was glad to see a raft of new programming - they mentioned seven to eight - that will be introduced in '22. This gives buyers confidence there will be ongoing new content to run for the full year delivering a consistent audience level.

Given the mishaps at the start of 2021 with the Tennis delay, I feel next year will be another great start for Nine. With Ash kicking off in the Oz Open then, as usual, leading into MAFS. I see a strong start to the ratings battle for Nine in 2022. TV inventory will be in very high demand from early next year and this program platform built by Nine will have another strong year."

Jack Byrne, MD, Hatched: "A great presentation as always by Nine with a strong play across content, technology and data.

"Love Michael Stephenson’s optimism of the Roaring ’20s, and it looks like it will be roaring for many sectors. However for some, it will continue to be a very challenging business environment, and the need for advertising that delivers incremental return on investment has never been more important.

"It was most pleasing to hear about Nine’s commitment to measuring genuine attention and their partnership with Professor Karen Nelson-Field’s Amplified Intelligence. It has never been more important for advertising to garner genuine attention and create impact in such a cluttered world.

"To quote Professor Byron Sharp, 'Reach without attention is pointless'. Attention is an art and science we are placing a lot of focus on creating for our clients at Hatched."

Daniel O'Brien, commercial director and head of strategy, Frontier Australia: "Considering how much they got through, I thought Nine presented an impressive and reasonably concise overview of what’s to come. 
 
"Content pipeline was always going to look good given the properties Nine carries, however the key takeaway for me was a clear focus on making it easier for brands and agency partners to leverage the 14mill+ strong logged in users across the network. 
 
"Simplicity, efficiency and scale, something only Facebook and Google have offered to date and Nine are a welcomed competitor in this space offering a strong alternative. I look forward to helping the brands we work with tap into a data-driven, networked solution that most importantly - is easy to plan and buy.
 
"It will be interesting to see how the other networks stack up." 

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