2018 DIGITAL

STATE OF PLAY &

COMPETITIVE
OVERVIEW
PREPARED
BY MATT HINERFELD
 STATE OF PLAY
$
Watch?
Newsfeed?
Groups?
SOCIAL MEDIA = THE NEW MEDIA COMPANY Stories?

• Despite Cambridge Analytica, “Facebook’s model is still a strong one,

and it is poised for a giant leap forward as both the security and safety
of the industry’s leading advertising platform continues to evolve.”
[Adweek 5/718] 300M+ DAU on
Stories alone
• 62% of marketers will increase their Facebook activities this year. w/ users
• Instagram organic & paid social media marketing strategies will creating 4X
continue growth pace in 2018 more videos in
• 81% of marketers will not increase their Snapchat activities this year. 2017 vs 2016
• Despite Twitter growth, most don’t plan on
• Video is king. In 2017 2X more was spent on social video vs TV ads
and by the end of next year, video will make up an astounding 80% of
all internet traffic
• Two out of three marketers expect video to make up the majority of
their content in the near future (Cisco)
• The algorithm changes in the FB newsfeed create a normal advertising After a relatively flat 2017 and sagging ad
structure, where creative is given media support, ensuring it’s seen by sales, TW moved aggressively to buy
exclusive live sports streaming rights and is
the right people. having a profitable 2018
• Budgets being allocated to social are rising ultimately relying on
Despite the Q1 2018 face plant and sub-par DAU growth,
stronger talent to deliver results vs tired tactics of gam
they still attract the attention of media companies
targeting the elusive 13-24 demos (i.e 50/50 joint venture
Source: Social Media Examiner Industry Report 2018 (polling with NBC Universal for mobile-first scripted series)
5,700 marketing industry professionals)
STATE OF PLAY THE PURE PLAYERS

STREAMING & OTT – THE WINNERS AND

EVENTUAL LOSERS
Today’s premium OTT video world is over- THE NOT JUST CONTENT PLAYERS
crowded & 2018 will prove to be the ultimate
shakeout. Netflix dominance will continue to be
challenged with defensive plays by traditional
media companies investing unprecedented
amounts of money for content, and acquisitions.

• Cisco forecasts that by 2021, 78% of all mobile

traffic will be from streaming content
• In 2017 The Pew Research Center reported six in
10 millennials (61 percent) stream TV versus
THE TRADITIONAL MVPDS
watching cable

THE OTHER PLAYERS

 HOW THEY FIT IN
STATE OF PLAY –
CLIENT DIGITAL FIRST MEDIA
MEDIA
COMPANIES
PAID SEARCH FORMERLY KNOWN AS MCNS
:30 COMMERCIAL
:06 COMMERCIAL AGENCY PAID SOCIAL
MEDIA (PRE-ROLL) KEY INSIGHTS
PRINT/OUTDOOR DISPLAY
• MCN models (the content aggregators and talent
middlemen) gave way to full-fledged content companies
DIGITAL MEDIA CO. over past 5 years
VIDEO/SOCIAL/EDITORIAL
• Traditional media companies paid hefty price tags less for
the digital content and more for the millennial audiences
(Disney & Maker, Awesomeness & Dreamworks,
MARKETING, PR, IN-HOUSE CREATIVE & Fullscreen & AT&T)
RESEARCH PRODUCTION • Challenges - All the money being made available for video
OWNED & OPERATED means there is a lot more competition among sellers, with
everyone from independent digital studios to digital studios
CONTENT funded by major film studios and TV networks to legacy
print publishers looking to build big video businesses
DISTRIBUTION &
AUDIENCE • Opportunities – Small screen success translating to big
screen success (Crypt TV, Awesomeness TV), capitalizing
MINIMIZES RISK INCREASED ROI on niche markets (Asian, Latino) and leveraging success
on (Facebook, YouTube, Instagram) to create new models
on OTT/subscriptions
STATE OF PLAY – BRAND THE 3 C’S BRANDS LIVE BY TODAY
MARKETING CONTENT-COMMUNITY-COMMERCE

BRANDS ARE MEDIA COMPANIES &

TRADITIONAL ADVERTISING WON’T CUT IT
ANYMORE FOR REACHING CONSUMERS
Millennials who have grown accustomed to branded
messages in their daily lives (as long as those message
are authentic) and brands have had to firmly position
themselves as digital-first content companies to speak
directly to this mobile-first generation. CONTENT COMMERCE COMMUNITY

WITH A FUNDAMENTAL GOAL OF SELLING

ENERGY DRINKS (6 BILLION CANS OF RED BULL
LAST YEAR), THE COMPANY IS BETTER KNOWN
FOR 120,000 FOOT SPACE JUMPS

GO PRO’S MASSIVE IPO & $8B VALUATION IN 2014

WAS AS A MEDIA COMPANY (14M INSTAGRAM
FOLLOWERS) NOT A CAMERA COMPANY (THEIR
COLLAPSE IN MARKET VALUE, NOTWITHSTANDING)

ONE VIRAL VIDEO = $1B ACQUISITION BY

UNILEVER LESS THAN 2 YEARS LATER
 STATE OF PLAY –
BRANDED CONTENT
BRANDED ENTERTAINMENT GROWING 2X FASTER
THAN ADVERSTISING SPEND
15% growth in the content marketing industry
over the course of 2018. , KEY INSIGHTS
• Last year, $3B in branded content was estimated to have been
divided between ~100 top publishers working out to an avg
revenue of $30M. This year the projection is $7B
• Brands are increasingly approaching content marketing as a
central part of their marketing strategy as opposed to niche
internal play
• The biggest opportunity is talent, credibility and trust of partners
to win a piece of their content marketing budgets to create
original branded entertainment either client-direct or as a third
party
• The biggest challenge is that content-driven brands are already
SOME NOTABLE PLAYERS busy establishing in-house studios to position themselves as
publishers akin to the media properties they might otherwise be
advertising on.
• Additionally, large holding agencies tend to control these budgets
and can redirect budget to distribution, traffic, overhead
PORTAL A CYCLE MEDIA • Publicis has created a 6 Second Video unit in anticipation of more
of their clients asking for the format for mobile/social video
STATE OF PLAY –
EMERGING TECH
VR, AR, AND EXPERIENTIAL • VR growth will be driven mainly in the gaming sector with broader entertainment
ENTERTAINMENT verticals evolving (live-action sports, genre films, IP-driven experiences)
• Major VR & AR players are combination of West Coast, Silicon Valley-based privately
funded start-ups and behemoths (Apple, Google, Facebook)
• Media companies, networks, and studios have installed emerging platform experts on
their marketing & platform teams
THE PLAYERS $17.8B 2018 AR/VR WORLDWIDE
SPENDING FORECAST
SOURCE: IDC – GLOBAL IT ANALYST

“Technology should be the new

DNA of an agency and not just the
icing on the cake”
(5/7/18)
DIGITAL OPPORTUNITIES
VIDEO, VOICE, VIRTUAL
Media Is Social and LIVE
• Video has been on the front burner for marketers across all categories this year. Be it original content, the
use of influencer videos and especially traditional commercial. We are going to see more emphasis
on live video.
• We will see even more uses of Live Facebook video, Instagram video and more. Live feeds that enable
consumers to interact in real time with products, people and services

AI & Emerging Tech

• AI/Voice will continue to come to life in a more commercial way
• Marketers and agencies will continue finding new ways to integrate voice interaction with marketing to
create wholly personalized experiences that are more relevant and relatable to consumers

Gaming
• Global box office grossed about $40 million last year compared to a nearly $100 billion gaming market.
Traditional media companies have taken notice, with dedicated game teams extending their IP to mobile,
and console.
• Being adept at this lucrative market category, understanding the consumer marketing trends, especially as
they apply to the rise of AR/VR can create an advantage
 DIGITAL CONSIDERATIONS
THE INTERSECTION OF CREATIVE AND COMMUNITY

TRENDS OF SUCCESSFUL MARKETING CAMPAIGN STRATEGIES

• Telling real stories with minimal branding.
• Compelling, successful organic promotion, with highly
sharable content.
• Joining global conversations on news and potentially
controversial topics.
• Focus on spreading kindness and positivity and
community service—actively calling people to action
rather than distracting them from important issues.
• Creating brand personalities that people want to follow
and engage with.
• Experimenting with different ways to use AI, chat bots and
experimenting with other technology in a more
commercial sense for engagement, and customer service
• Having splashy photos and visuals just isn’t enough
anymore: Effectiveness and purpose is very important.
• Connecting with audiences and involving them in the
creative process via user-generated content and online
communities is important.

KEY INSIGHT: FOCUS ON TALENT, INNOVATION, AND CREATIVITY TO DELIVER ROI FOR CLIENTS ON SOCIAL
 CASE STUDY - HBO & GAME OF THRONES
#CATCHDROGAN CAMPAIGN BY 360I

ENGINEERING SOCIAL GAME AND A CROSS-PLATFORM

PROMOTION TO DRIVE THE MOST WATCHED SEASON
OPENER IN GAME OF THRONE’S HISTORY
KEY AGENCY TALENT INVOLVED

BUDGET RANGE: $200K-$300K
• CREATIVE DIRECTOR
• SOCIAL STRATEGY DIRECTOR / COMMUNITY STRATEGIST
• SOCIAL MEDIA DIRECTOR
• ART DIRECTOR
• SR. INTERACTIVE PRODUCER/PROJECT MANAGER
• SR. COPYWRITER

STRATEGY TRENDED ON FACEBOOK & TWITTER WITHIN 2 HOURS OF LAUNCH

After four seasons, HBO's 'Game of Thrones'
needed to rally the realm and generate
unprecedented excitement once again for the
Season 5 premiere. With Daenerys Targaryen's
1B+ TOTAL
IMPRESSIONS 20% INCREASE IN
VIEWERS YOY 6.6M INTERACTIONS
IN ONE DAY
most fierce dragon – Drogon – having gone
missing toward the end of Season 4, HBO and
360i set out Twitter with an interactive, cross-
platform social game that would lead 17M+ fans
into the unknown and mythical world of dragons.

INSIGHT
Gamify experience and engagement on social
platforms in a whimsical fun manner that involves
community CLICK HERE FOR DETAILS
 INSTAGRAM CASE STUDY
13 REASONS WHY + NETFLIX
HI5 AGENCY – NATIVE INSTAGRAM CAMPAIGN

BUILDING MASSIVE AWARENESS FOR A CONTROVERSIAL

SERIES LAUNCH BY ENGAGING YOUNG PEOPLE WHERE KEY AGENCY TALENT INVOLVED
THEIR MOST IMPACTFUL CONVERSATIONS HAPPEN
• CREATIVE DIRECTOR
• SOCIAL STRATEGY DIRECTOR
• SOCIAL MEDIA DIRECTOR
• ART DIRECTOR
• SOCIAL CONTENT MANAGER
BUDGET RANGE: $75K-$150K • SR. INTERACTIVE PRODUCER/PROJECT MANAGER

STRATEGY RESULTS
Leveraging key insights, hi5 created a
completely in-world Instagram account for 13
Reasons Why, featuring regrams and Stories
684K FOLLOWERS FOR
HANNAH’S
ACCOUNT
30K FOLLOWERS IN
FIRST 24 HOURS 3M+ OVERALL
INSTAGRAM
FOLLOWERS
by the characters themselves, as well as
videos that disrupted fans' feeds—all linked to
the characters’ account handles giving fans a
seamless look at what scrolling through the
character's feeds would look like including the
doomed heroine, Hannah who’s account stops
after she takes her own life on the eve of the
series launch.
CLICK HERE FOR DETAILS
CASE STUDY –
DIGITAL HULU (THE
PERFECT GIF)
Offer up the perfect GIF for any situation during the
holidays to promote Hulu’s vast content library by
creating a sophisticated 'Perfect GIF Generator' that
would pair users' tweets with a fitting TV GIF.

BUDGET RANGE: $50K- $100K

STRATEGY & RESULTS

• Recruit an army of GIF makers who combed through Hulu's
offerings night and day to capture GIFs that TV fans would love
• As users tweeted, a predictive text engine scanned each
message in real time and searched a massive library of TV
moments to find the GIF that typified their sentiment
• The increased word of mouth and exposure that the campaign
drove contributed to 52% more impressions and 43% more
shares compared to the same time period in the previous year.
53M+ SOCIAL IMPRESSIONS
CASE STUDY –
KEY AGENCY TALENT INVOLVED

• SOCIAL STRATEGY DIRECTOR / COMMUNITY STRATEGIST

• SOCIAL MEDIA DIRECTOR

SHOWTIME &
• ART DIRECTOR
• SR. INTERACTIVE PRODUCER/PROJECT MANAGER
• SR. COPYWRITER

BILLIONS BUDGET RANGE: $100K-$150K

How do you bring the entrepreneurial spirit of
Showtime’s hit series Billions to life, and reach a new
audience that would be receptive to the show for
season 2?

STRATEGY & RESULTS

• Turn the popular crowdfunding platform, Kickstarter, into a
social platform, that spread the word about Billions.
• By getting them to their funding goals, Creators became
evangelists for the brand, making the hashtag #BackedByAxe
a social media rallying cry— sharing videos and posts on
Kickstarter and their social networks (Facebook, Instagram,
Twitter etc.). CLICK HERE FOR DETAILS
• Billions was introduced to a whole new audience, and for the
first time ever, a fictional company from a TV show invested in
real companies in the real world. 30MCAMPAIGN REACH
 BRANDED CONTENT CASE STUDY – AUDI
+ SPIDERMAN HOMECOMING
DRIVER’S TEST VIDEO - MUH-TAY-ZIK | HOF-FER AGENCY

INTRODUCING A8’S NEW FEATURES WHILE PROMOTING THE

NEXT SPIDERMAN INSTALLMENT FOR SONY PICTURES
KEY AGENCY TALENT INVOLVED

• SOCIAL STRATEGY DIRECTOR / COMMUNITY STRATEGIST

• SOCIAL MEDIA DIRECTOR
• ART DIRECTOR
BUDGET RANGE: $400K-$500K • SR. INTERACTIVE PRODUCER/PROJECT MANAGER
• SR. COPYWRITER

STRATEGY & RESULTS

"Driver's Test" , a short branded film starred the movie’s hero
#1 MOST LIKED PIECE OF CONTENT AUDI HAS EVER CREATED
(Tom Holland) and J,B. Smoove. It was launched with social
support that expanded the story on Facebook, Twitter, and
through the star's native social profiles. 4M+ YOUTUBE VIEWS
Executions included playful ads for the fictional "Wheel Teach 159K YOUTUBE LIKES
Ya!" driving school, teasers of the Audi logo created with
spider webs, and unique reactive posts where J.B. Smoove
and Tom Holland responded to individual fans' comments
30 #THEOFFILM
COUNTRIES
RAN

CLICK HERE FOR DETAILS

 BRANDED CONTENT + EMERGING TECH
CASE STUDY – USA NETWORKS

MR. ROBOT DAILY FIVE NINE – USA NETWORKS

USING AN ALEXA SKILL TO ACTIVATE AUDIENCES AND DRIVE BUZZ FOR SEASON 3

BUDGET RANGE: $150K-$250K

STRATEGY & RESULTS

DAILY FIVE/NINE BECOMES TOP 10 ALEXA SKILL
USA Network brought an Alexa skill, used
within the Mr. Robot storyline, to life in the
real world, allowing fans to access a Daily
Five/Nine flash briefing in the same exact
way Dom did in the series. Promotion on
social media, on-air promos and editorially
from USA Networks.com generated
massive social buzz and pushed the Alexa
skill up to the top 10 list on Amazon. CLICK HERE FOR DETAILS
 GAMING CASE STUDY –
NBA2K17
CREATING AN INDUSTRY FIRST INNOVATION
TO POSITION NBA2K AS THE MOST REALISTIC
BASKETBALL VIDEO GAME SIMULATOR EVER

BUDGET RANGE: $200K-$300K

THINK LA ADWEEK PROJECT ISSAC

STRATEGY INNOVATOR AWARD INNOVATION AWARD
• Create Boost – a first of its kind integration
between video games and fitness trackers that
rewards gamers for getting active. Gamers can
now connect their NBA 2K accounts to their
Fitbits and every time they walk 10,000 steps per
day, their NBA 2K character improves.
 SNAPCHAT GAME CASE STUDY –
ATOMIC BLONDE
PROJECT C

KEY AGENCY TALENT INVOLVED

• SOCIAL STRATEGY DIRECTOR

• CREATIVE DIRECTOR
• DIR. OF TECHNOLOGY
BUDGET RANGE: $100-250K • SR. DEVELOPER
• SR. INTERACTIVE PRODUCER/PROJECT MANAGER

STRATEGY & RESULTS THE FILM WENT ON TO BECOME THE SURPRISE SUMMER HIT OF 2017
Created specifically for the Snapchat platform, this multi-level 8 bit
style video game put the user in Charlize Theron’s high-heeled boots,
as she punches, kicks and shoots her way through a 1980’s Berlin, a 1.2M+ SNAPCHAT
IN 30 DAYS
PLAYS

cold war city on the verge of revolution.

8 bit design was the perfect way to pay homage to the period of the
film without compromising the user experience. Along with a thumping
soundtrack, iconic scenes from the film were accurately recreated,
immersing the user into the action-packed world of Atomic Blonde.

CLICK HERE FOR DETAILS

CASE STUDIES
OTHER NOTEWORTHY EXAMPLES
Websites
• A24 A Ghost Store (Watson Design Group)
• FXX simpsonsworld.com
Social Stunt / Experiential
• Genius Einstein's Chalkboard (Deep Local)
• STX “The Gift” Viral Stunt (Giant Spoon) http://www.giantspoon.com/
Digital
• Santa Clarita Diet http://www.hi5.agency/#work/scd (Hi5)
Content
• Logan Crushing Adamantium (Left Field Labs)
Gaming
• http://makebelieve.com/case-study/final-fantasy-xv/ (Armed Mind)
• http://thisisheat.com/work/ubisoft-assassins-creed-tales-from-the-tomb (Heat)
RESOURCES AND RESEARCH
GENERAL SOURCES RESEARCH STUDIES
• https://digiday.com/media/nbcus-specialized-unit-makes-shows- • https://www.skyword.com/contentstandard/creativity/branded-
snapchat-beyond/ entertainment-growing-twice-as-fast-as-advertising-spend-study-
• https://digiday.com/marketing/always-fighting-budget-confessions-digital- finds/
studio-exec/ • https://www.socialmediaexaminer.com/wp-
• https://www.facebook.com/business/success content/uploads/2018/05/Industry-Report-2018.pdf
• https://www.tubefilter.com/2018/05/11/behind-the-brand-deal-portal-a-
branded-content-influencers/
• http://www.adweek.com/agencies/why-in-house-publishers-are-
becoming-attractive-alternatives-for-advertisers-and-creatives
• http://www.businessinsider.com/the-agency-laundry-service-wants-to-
spend-150-million-on-acquisitions-2017-6
• http://www.adweek.com/tv-video/brands-take-notes-from-the-film-
industrys-marketing-lessons/
• http://www.adweek.com/agencies/how-technology-and-fresh-talent-
are-mapping-out-the-future-for-agencies/
• https://www.tubefilter.com/2018/04/03/apple-music-subscription-
video-mtv-netflix/
• http://www.adweek.com/digital/why-facebook-will-become-the-most-
trusted-spot-on-the-internet-for-advertisers/
• http://www.adweek.com/agencies/why-the-traditional-agency-model-
is-struggling-to-keep-up-with-demand/
• http://variety.com/2018/digital/news/facebook-f8-ar-instagram-
messenger-1202792295/
• http://www.bandt.com.au/media/publicis-media-launches-6-second-
video-to-focus-on-short-form-brand-video-content-creation