Signing with Comcast, Viacom Continues to Enhance Advanced Advertising Capabilities

by Stuart Winchester, Viacom

Viacom has spent years finding better ways to match advertisements with audience. Last March, the company was a founding member of the OpenAP advanced audience platform. Its 2017 renewals with Charter and Altice USA included advanced advertising components. And CEO Bob Bakish has consistently emphasized the importance of continuing to develop these capabilities.

“….on the advanced advertising space, Viacom is clearly the market leader,” Bakish said at the UBS Global Media and Communications Conference in December. “…So I think that is a very exciting road ahead.”

Indeed. Especially since Viacom has now signed a multi-year agreement with Comcast that will further boost its advanced advertising and data capabilities.

The mutual advantages are clear. Viacom has a nationwide reach and deep advanced advertising expertise. Comcast, through anonymized data mined from set-top boxes in subscribers homes, knows who is watching which shows and can match that audience to ads using powerful tools developed through its FreeWheel unit. Together, they can better monetize ad inventory across premium video-on-demand and linear content.

“Today’s announcement reflects Viacom’s commitment to developing more expansive relationships with our distributors,” said Viacom Executive Vice President and Chief Data Officer Kern Schireson. “This new partnership with Comcast and FreeWheel builds on Viacom’s connections with valuable, diverse audiences and Comcast’s reach and data leadership, to create an advanced advertising platform with scale and sophistication. Marketers increasingly demand the ability to reach the right customers at the right time in a premium, trusted environment, and this transformative partnership furthers our ability to unlock greater value for our brand partners and accelerate the future of television advertising.”

“Viacom and FreeWheel have a shared goal of enhancing the value of the entire TV ecosystem,” said FreeWheel Executive Vice President and General Manager David Clark. “To do so, we believe in a shared vision of a TV and premium video unification roadmap that will accelerate the integration of TV’s broad reach and quality content with advanced cross-platform targeting, measurement and optimization capabilities.”

NBCU, which is a part of Comcast, also aligned with the OpenAP consortium last week.

“We’re Focused on a Return to Growth,” Bob Bakish Tells Deutsche Bank Conference

by Stuart Winchester, Viacom

Viacom President and CEO Bob Bakish sat with analyst Bryan Kraft at the Deutsche Bank Media, Telecom and Business Services Conference in Palm Beach, Florida last week. In an extended Q&A session, Bakish outlined Viacom’s wide-ranging growth initiatives, from sophisticated advanced advertising products, to the opportunities in mobile distribution, to the company’s strength outside of the United States.

“We spent 2017 really stabilizing the business, and now we’re focused on a return to growth,” Bakish said. “… We articulated a three-part plan associated with that, growing share and margins in our core business, accelerating our participation in next-generation platforms and solutions, and unlocking opportunities with synergies to the core that are outside of traditional media revenue streams.”

While Bakish looked firmly toward the future, he also summarized a few of Viacom’s many recent successes: MTV is in its 10th consecutive month of growth; BET’s ratings streak stands at three straight quarters; Paramount Network launched to both critical acclaim and ratings success in January; ratings at CMT, TV Land and VH1 continue to be strong.

Here are a few more highlights from Bakish’s conversation. You can listen to the full Q&A session here.

Viacom’s diverse demographics + diverse ad products = enormous opportunity

“… all our constituencies have embraced the flagship strategy and certainly that’s true in the ad community. We’re in a very enviable position in that we serve the full spectrum of demographics, really from preschoolers all the way up to, as I said, 25-54s. … But importantly, what you have to realize about our ad business is, yes, it’s partially ads or majority ads on linear television networks … but it’s also our advanced advertising business. And that’s around instilling data-driven approaches and alternate kind of orbits versus [potential] truck [purchasers] versus men 18 to 34 in a television-centric environment, and then all the way up through actual dynamic ad insertion, which is another element we’ve added as we’ve redone our MVPD deals this year [so that] we have access to insert at the consumer level.”

A cornerstone strategy drives growth internationally

“… [Viacom’s international cornerstone strategy] started with our creation of our joint venture in India, which we did in 2007, where we went on to launch a brand called Colors and sitting here today, it’s the number one. … We then went on to acquire Channel 5 in the UK about five years ago. That’s been a homerun and we acquired Telefe in Argentina, which is number one broadcaster in Argentina about a year ago and that’s been a homerun. So, you put that all together and you have a company that grew – our international division that grew, earnings, double digits ad revenue, double-digit affiliate revenue, double-digit ancillary revenue in the last quarter and earnings, let’s say very, very strong double digits in the last quarter and continues to be on a … strong track to additional growth.”

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Viacom to Welcome Proven Partner: Influence Marketing Company WHOSAY

by Stuart Winchester, Viacom

Viacom has signed a definitive agreement to acquire WHOSAY, an influence marketing company whose deep reach into next-generation advertising and marketing platforms and solutions will boost Viacom’s capabilities across advertising, marketing and digital content.

Partnering with some of the world’s most recognizable brands, WHOSAY does everything from crafting campaign strategy to casting influencer talent to producing premium content and live events to analyzing data and performance.

An important piece of Viacom’s strategic plan

Viacom’s acquisition of WHOSAY will be an important component of the business strategy laid out by CEO Bob Bakish, who has frequently discussed the necessity of further expanding onto emerging digital platforms and beefing up the company’s already considerable advanced-advertising capabilities.

“One objective is accelerating our participation in next-generation platforms and solutions,” Bakish said, outlining his principle 2018 objectives at the UBS Global Media and Communications Conference in December. “So those are things like the over-the-top business, where we see significant opportunity on the virtual MVPD [multichannel video programming distributor] side, also the direct-to-consumer side, and related to that, the advanced advertising side. And this is not something that we’re making up … we had about $350 million of business there across those sectors [in 2017], and we believe that’s a $1 billion business by 2020.”

A proven partner

This acquisition will unite two engaging storytellers, fusing Viacom’s global content engine, diverse audience and best-in-class advanced advertising tools with WHOSAY’s precision ability to seamlessly match brand objectives with talent and creative, and optimize the message through omnichannel distribution.

WHOSAY has already executed more than 50 campaigns for MTV, BET and other Viacom brands over the past two years, crafting activations that feature top influencers such as singer/songwriter LeToya Luckett for November’s BET Soul Train Awards, and rapper Lil Yachty and actor Keegan Allen for the MTV Movie & TV Awards in May.

https://www.instagram.com/p/BTnZWW6l0jj/?taken-by=keeoone&hl=en

“We’re excited about a deeper integration with WHOSAY and the strength of our combined capabilities,” said Viacom Head of Marketing & Partner Solutions Sean Moran. “This partnership will add to our linear, digital and mobile arsenal by bringing us further into the world of social media and shopper marketing. Together, we will offer brand partners unparalleled creative solutions that maximize the power of storytelling, influencer reach, omnichannel distribution and advanced advertising tools to create quality campaigns that drive results.”

Complementing Viacom’s strengths

Amplifying the power and reach of WHOSAY’s campaigns is the company’s expertise in matching brands and influencers via its proprietary Match platform. Once the pairing is solidified, WHOSAY is expert at distilling a brand’s goals, creating a campaign, and spreading that message to the ideal audience through social, digital, mobile, linear, experience, out-of-home and other channels.

These advanced whole-campaign capabilities and digital focus will act as a powerful complement to many of Viacom’s existing entities, including the Velocity full-service integrated marketing and creative team and the company’s newly created Digital Studios unit under Kelly Day.

The addition of WHOSAY to Viacom’s portfolio will also underscore Viacom’s position as a leader in advanced advertising, building upon the significant capabilities of its data-driven audience-targeting Vantage product and its status as a founding member of the OpenAP audience targeting and measurement platform.

In addition to their considerable digital and event capabilities, WHOSAY has built a bricks-and-mortar-focused WHOSAY Shopper team, which will open up potential new retail opportunities for Viacom brands.

“This Continues to Be an Extremely Undervalued Company” – Six Highlights from Bob Bakish’s UBS Global Media & Communications Q&A

by Stuart Winchester, Viacom

Viacom CEO Bob Bakish attends the Ribbon Cutting for the new Viacom Building on January 26, 2017 in Los Angeles, California. (Photo by Todd Williamson/Getty Images)

Viacom CEO Bob Bakish appeared onstage at the UBS Global Media and Communications Conference yesterday in New York City, where he spoke to media and telecommunications analyst John C. Hodulik.

Bakish discussed the financial improvements surfaced in Viacom’s recent earnings report, the strength of Paramount’s film and television studios, flagship network highlights, and his optimism about the growth opportunities available through multi-platform distribution, live events, and other streams.

In his remarks, Bakish crystalized several key points about Viacom’s operations. Six of the most important are pulled out below. Click here to listen to the full conversation.

1) Viacom is a global cross-platform content engine

“And as we pivot and look to 2018, what we’re really focused on – and people think about Viacom and they say, ‘you’re a pay-TV company.’ And it’s true that we have a substantial business base in pay television. But what Viacom really is, it’s a global content engine across television, across feature film and increasingly across digital-native.”

2) Partnerships are key to growth

“The interesting thing is outside the U.S., in most markets, still today, Viacom is a relatively small player. And so, how do we get the benefits of being a bigger player? And the route to that was through partnership, whether that was partnering with our distributors, on the advertising side. We participated in a whole set of ad sales houses through that time, some of them we run, some of them other people run, some of them were joint ventures but that was all about getting the benefits of scale.”

3) Viacom’s flagship brands remain the priority

“Well, flagships [Nickelodeon, Nick Jr., MTV, Comedy Central, BET and the soon-to-launch Paramount Network] are certainly Viacom’s priority because again we think there’s significant opportunity particularly to grow share there on the network side, as well as broader awareness. As we begin to implement that strategy we certainly remixed our programming investment and moved it towards the flagships, point one. And point two is within the flagships, a brand like MTV, which I’m continuing to be tremendously excited about, there was a place where we put a new team in place, we put a new strategy in place, that strategy was about shifting the programming mix. MTV had gone to a place where it was very invested in scripted programming, which is quite frankly something you can get from a variety of places and it was not really a core association of the brand, so we’ve moved it to a more of an unscripted place, more of a live place.”

4) Viacom is the market leader in advanced advertising

“And by the way, on the advanced advertising space, Viacom is clearly the market leader. We partnered with Fox and Turner to set up OpenAP and we did that so the category can continue to scale, which is a very important thing for us. But we were the leader and we, as far as I know, are the only people doing these type of multi-faceted distribution deals and you’ll see the benefit of those start to come online as we get into 2018 too, and we’re able to unlock some more of this addressable inventory. So I think that is a very exciting road ahead. And again, sets the stage for a much more productive partnership with the MVPDs here in the U.S. and frankly around the world.”

5) 2017 was about stabilization, 2018 is about acceleration

“But as we accomplished really the stabilization of the company and I think that’s the best word, 2017 was about stabilization, 2018 is about acceleration particularly in these newer areas.”

6) Viacom is an undervalued cash machine

“Well, Viacom if you look at 2017, $1.5 billion to $1.7 billion in cash flow, durable cash flow, it’s about a 15 percent yield. So, this thing is a significant cash machine. You look at 2017 and we eliminated the big overhang on the business, quite frankly, which was the uncertainty around distribution. We have distribution deals with mid-single digit annual escalators locked in through well past 2020. So we have a secured distribution base and we have these incremental opportunities that are not only ideas on the next-generation platforms and solutions, on incremental revenues beyond the core, they’re not only ideas, they’re businesses we are already in, in 2017 that we are, therefore, know how to operate and can accelerate. So there is a tremendous opportunity ahead. This continues to be an extremely undervalued company.”


Bakish also appeared on CNBC last week. Watch his conversation with Julia Boorstin here.

Viacom Renews Charter Deal, Includes Co-Production and Advanced Advertising Elements

by Stuart Winchester, Viacom

Viacom and Charter Communications have announced a multi-year renewal and expansion of their partnership, the latest in a string of recent distribution agreements that have expanded consumer options for accessing the media company’s content.

The Charter deal includes co-production of original content via its Paramount Television property and a collaboration around advanced advertising, underscoring Viacom’s commitment to continue evolving its partnerships in the rapidly changing media space.

As part of the agreement, core Viacom networks –  including Nickelodeon, BET, MTV, Comedy Central, Spike (soon to be Paramount Network), VH1, TV Land and CMT – will be available to all Charter subscribers.

The announcement comes just one day after Viacom and four other major entertainment groups partnered with internet television company Philo to launch an affordable, sports-free entertainment pack, a first-of-its kind offering that fills a gap in the U.S. television landscape.

Earlier this year, Viacom inked a deal with Altice USA – which owns Optimum, Lightpath and Suddenlink systems – that also included advanced advertising components.