How Brands Have Made the Pivot with Nimble Marketing

How Brands Have Made the Pivot with Nimble Marketing

Advertising

On the True Interactive blog, we have discussed examples of how businesses are adapting the tone of their online advertising to remain relevant—and appropriate—during the pandemic. But some brands have needed to do more than adjust their tone; they’ve had to adapt their marketing strategies and even their business models to address specific needs or limitations brought about by COVID-19. Here are some examples:

Raising Cane’s

Raising Cane’s, the fast-food chain specializing in chicken fingers, saw the pandemic coming. As discussed in QSR, Raising Cane’s founder and co-CEO Todd Graves closely followed news of COVID-19 and its spread throughout China; Graves and his team knew it was only a matter of time before the virus moved abroad, and they were quick to take action when it did. Health and food safety, always a priority, got even more attention. And the restaurant bolstered its ability to manage drive-through service rather than sit-down dining, even as the maintenance of food quality remained a priority. The operational change demanded a marketing pivot.

Raising Cane’s changed its message, including its digital advertising, to focus on its heightened focus on safety. The business also ratcheted up promotion of its drive-through service. Especially in the early days of the pandemic as shelter-in-place mandates took hold, it was not always clear to people which restaurants were open and which ones were not. In addition, the company mobilized part of its work force to support healthcare workers on the front lines fighting the pandemic, ranging from having employees sew masks to donating food to hospitals. The company talked about these efforts, which encouraged others to step up, too. In doing so, Raising Cane’s also aligned its actions with consumer preferences: according to a Kantar study, more than three-quarters (77 percent) of the general population would like to see brands talk about how they’re helpful in the new everyday life.

Raising Cane’s realized a benefit from its marketing pivot: a temporary dip in sales that occurred when coronavirus hit U.S. shores was followed by a return to pre-COVID-19 sales numbers. Now Raising Cane’s is making another interesting change as it promotes a sponsorship of virtual musical performances to benefit people on the front lines fighting COVID-19. How about a song with those chicken fingers?

D’Artagnan

For meat and poultry seller and manufacturer D’Artagnan, pivoting has meant changing market focus. Before the pandemic, 75 percent of the company’s revenue came from sales to restaurants with some revenue coming from direct sales to consumers online. But as restaurants closed in response to lockdown orders, that business dropped 80 percent. At the same time, grocery stores saw a leap in business as people began eating at home more. D’Artagnan recognized that trend and adapted by tapping into it, overhauling its operations to meet grocery market needs as well as a 700 percent increase in demand from customers suddenly ordering directly from the D’Artagnan website. The company pivoted its online marketing in a few crucial ways:

  • Ramping up special deals on its website to attract more consumers.
  • Advertising its direct-to-consumer business with Google Advertising, including promotion of overnight delivery; and reliance on social media to promote deals such as Mother’s Day specials.
  • Promoting an expansion of at-home delivery services, which made consumers in some previously untapped markets aware that the company was open for business.
  • Redirecting its sales team to build relationships with supermarkets.

The switch has demanded flexibility from D’Artagnan’s 280 employees, who have need to operate differently. The willingness to meet those challenges has been rewarded with sustained business, and sustained business has meant jobs: The Wall Street Journal reported in mid-April that the company had retained all its employees.

Peloton

In an era when people are traveling less and doing more of everything at home, this maker of exercise equipment has shifted focus from the use of Peloton bikes in hotels and gyms to at-home use. App Annie explains that Peloton optimized for search on both their app and web site, taking out words people aren’t searching for right now — “at the gym,” for example —and replacing them with phrases touting an at-home experience. They also dialed up at-home trial promotions, increasing their free trial from 30 to 90 days. The extended trial period is highlighted in the first sentence of Peloton’s iOS app description, a good way to reach out as customers get their heads around the necessity of getting fit at home. The company has also relied on Google Advertising to promote its ability to stream fitness classes to consumers. Recently Peloton reported a 66-percent surge in sales. Clearly, people are ready for a workout.

Contact True Interactive

To succeed with online advertising in 2020, contact True Interactive. Read about some of our client work here.

Amazon, Facebook, and Google Earnings: Takeaways for Advertisers

Amazon, Facebook, and Google Earnings: Takeaways for Advertisers

Advertising

The week of April 27 was especially important for the online advertising world. The three companies that account for nearly 70 percent of online ad spend – Amazon, Facebook, and Google – all announced quarterly earnings. Here was the first time advertisers would see the impact of the COVID-19 pandemic on ad spend. And the news was better than expected.

Amazon Advertising Surges

Amazon announced a rise in quarterly revenue as people sheltering in place increasingly relied on digital to manage their lives, including purchasing products. Amazon’s Advertising service saw a 44-percent increase in revenue (advertising is included in the “other” category in Amazon’s earnings). Why did Amazon’s advertising business do so well?

  • For one thing, consumers on Amazon are searching with intent to buy. And a lot of people are searching on Amazon. According to CivicScience, 49 percent of product searches start on Amazon, versus 22 percent on Google.
  • Amazon without question became a more attractive place to find things to buy as shelter-in-place mandates took hold. According to Learnbonds.com, Amazon’s monthly unique visitors for March, 4.6 billion, easily exceeded competitors such as eBay and Walmart.
  • Amazon was prepared to help advertisers build their visibility during the surge. As we have reported on our blog, over the years, Amazon’s advertising service has developed a number of products that have served Amazon and advertisers well. Those products include Sponsored Ads, Video Ads, and Display Ads, among others.

Amazon said it will plow its profits into COVID-19-related relief activities. As CEO Jeff Bezos said in a statement, “If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small. Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances. Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and keeping employees safe.”

Amazon’s steady development of an advertising service helped put the company in the position to be able to accommodate this expenditure.

Facebook and Google: Signs of a Turnaround

To no one’s surprise, both Facebook and Google saw a slowdown in revenue earned from online advertising, especially in March. But stock shares for both companies rose after they announced earnings. Why? Let’s take a closer look.

Facebook: More Users and Engagement

Facebook announced that even though ad revenue had dropped during the quarter, it was showing signs of turning around in April. Overall, quarterly revenue rose by $17.74 billion. As Facebook said in a statement, “After the initial steep decrease in advertising revenue in March, we have seen signs of stability reflected in the first three weeks of April.”

In addition, Facebook said that monthly active users had increased 10 percent year over year to number 2.6 billion, and engagement was up as people sheltering in place increased their use of social media.

The advertisers who maintained their spending levels during the dip in March benefitted by being present during the surge in user engagement, as we discussed on our blog.

Google: YouTube Is the Star

Meanwhile, Google’s parent company, Alphabet, reported quarterly revenue of $41.16 billion, a 13-percent year-over-year increase. Revenue from advertising rose 11.6 percent, with advertising from YouTube surging by 33.5 percent.

Alphabet acknowledged that online ad revenue had taken a hit because of COVID-19. But in an investor earnings call, the company’s Chief Financial Officer, Ruth Porat, said that “We have seen some very early signs of recovery in commercial search behavior by users.”

Because Google is very active in the travel and retail – industries that have been rocked by the pandemic – its performance actually exceeded expectations.

As with Facebook, advertisers who maintained their levels of spending benefitted as the general population shifted its behaviors online during the first quarter. As we noted on our blog, many businesses adapted their tone and content to demonstrate empathy with ads running on Google sites such as YouTube. Those businesses positioned themselves well.

What You Should Do 

Amazon, Facebook, and Google will continue to dominate the world of online advertising for the foreseeable future. Here is what we suggest:

  • Don’t go dark. Businesses that maintained their visibility online during the March advertising downturn benefitted from the increase in online engagement. Even as states ease up their shelter-in-place orders, social distancing is not going away anytime soon. We’re living in a digital-first world now amid longer-term behavioral changes. Being present with paid media means taking a digital-first approach.
  • Mind your tone. As I blogged in March, businesses need to do a gut check on the tone of their content. Many businesses have successfully incorporated empathy into their advertising while others have changed their messaging to focus on health and safety. Taylor Hart shared some examples of successful social media advertising in this blog post.
  • Be open to different forms of engagement. It’s important that businesses be ready to adapt different forms of engagement to reflect changing user behavior. For instance, as Facebook CEO Mark Zuckerberg pointed out during Facebook’s earnings call, livestreaming on Facebook is a more attractive alternative to live events. Moreover, Facebook had already been seeing a marked increase in use of its Messenger app before the pandemic. Héctor Ariza recently shared examples of ad products that capitalize on the popularity of Messenger. Given the increase in Facebook’s monthly average users, now is a good time to try those products.
  • Capitalize on new ad products. Google is fighting hard to protect its turf amid the rise of Amazon Advertising. The company continues to roll out new products to make the Google universe more appealing to advertisers. For instance, I recently blogged about how Google has adapted the YouTube masthead ad format for the era of connected TV. As Mark Smith discussed in December 2019, Google has been developing some impressive location-based advertising tools.

Contact True Interactive

We know how to create and manage online advertising that is appropriate for the times we are living in — don’t hesitate to reach out. We can help.

 

How Brands Are Succeeding with Social Media Advertising

How Brands Are Succeeding with Social Media Advertising

Advertising

There’s a disconnect between how businesses and consumers are behaving on social media during the coronavirus pandemic. As reported in The Wall Street Journal, people are spending more time on social apps such as Facebook, but businesses have scaled back their advertising during the first quarter (although in its latest earnings announcement, Facebook said that ad revenue had stabilized at the beginning of the second quarter in April). Companies that go dark on social create an opportunity for their competitors to engage with a growing audience. If you are one of those brands thinking of scaling back, perhaps you should reconsider. Let’s take a closer look at what’s going on.

Consumers Are Online. And They Are Receptive to Ads.

Life under lockdown has resulted in a spike of internet usage. The latest report from App Annie indicates that worldwide, average weekly time spent in games and apps on Android devices increased 20 percent year-over-year in Q1 2020. Significantly, consumer spending also ticked up: “In Q1 2020 consumers spent over $23.4B through the app stores, the largest quarter ever in terms of consumer spend.”

Increased time online also means an uptick in social media usage. According to TechCrunch, an April 2020 Kantar report reveals the extent of this uptick during the pandemic: Facebook, WhatsApp, and Instagram experienced a 40 percent+ increase in usage. Facebook usage has increased by 37 percent overall.

Not only are consumers online more, and still spending, but they are open to seeing ads. GlobalWebIndex research reveals that globally, approximately 50 percent of respondents approve of brands running “normal” advertising campaigns not linked to COVID-19. Strongest approval was reserved for businesses offering practical and informative tips to deal with the current circumstances.

As reported in Social Media Today, a recent Twitter survey provides some context as to this consumer openness to ads. One interesting finding: 52 percent of respondents said that seeing/hearing ads provides a sense of normalcy, even comfort. In other words, regular promotions are familiar. Anything familiar right now is welcome.

Brands That Are Doing It Right 

As we’ve already blogged, companies like Ford, Hanes, and Budweiser have all managed to strike the right tone in their coronavirus-era advertising. Brands that are specifically advertising on social media, and doing it well, include:

  • TOMS: in a recent Instagram ad, the shoe manufacturer acknowledges the fact that one’s workplace might look a little different right now. “Working from home?” the ad asks, over an image of cozy slippers from TOMS. The implication here is that times may be different, but TOMS shoes, familiar and comfortable, can help make these unfamiliar times better.

  • Dial: at a time when the CDC is recommending handwashing as a safety measure, antibacterial soap manufacturer Dial has created a 10-second spot for Facebook and Instagram that focuses on how to wash hands thoroughly. Dial’s name bookends the ad at beginning and end, but the focus is on customer safety. That’s a sound approach, given GlobalWebIndex research revealing 80 percent of respondents approve of brands running campaigns which demonstrate how they are helping their customers.

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The CDC recommends washing your hands as one of the best ways to help prevent you and your family from getting sick. Follow these 5 steps to wash your hands the right way every time:⁣ ⁣ Wet your hands with clean, running water (warm or cold), turn off the tap, and apply soap.⁣ ⁣ Lather your hands by rubbing them together with the soap. Lather the backs of your hands, between your fingers, and under your nails.⁣ ⁣ Scrub your hands for at least 20 seconds. Need a timer? Hum the “Happy Birthday” song from beginning to end twice.⁣ ⁣ Rinse your hands under clean, running water. ⁣ ⁣ Dry your hands using a clean towel or air dry them.⁣ ⁣ #Dial⁣ ⁣ #WashYourHands⁣ ⁣ #DialUpProtection

A post shared by @ dial on

  • Bones Coffee Company: in an Instagram spot that includes a coupon code, Bones Coffee Company encourages consumer engagement while speaking to our current quarantine situation head on. “How to self-quarantine,” the coffee company muses. “1. Stay Home. 2. Get Coffee.” The message is short, sweet, and to the point: small pleasures are still in our reach. They’re just enjoyed at home right now.

Tone Is Key

Brands do need to tread carefully to build trust. As reported in eMarketer, a March 2020 Kantar survey finds 75 percent of respondents saying businesses “should not exploit [the] coronavirus situation to promote the brand,” and that brands need to be careful with their tone. The Dial ad works because Dial is sharing useful information. The TOMS and Bones Coffee Company ads work because they discuss products that people would naturally want to use at home. Although the TOMS and Bones Coffee Company ads strike a lighter tone, they fall short of outright humor, which would have made them potentially tone deaf.

In short, not all ads work in a COVID-19 world. It’s also important to remember who your audience is: age group and quarantine status are bound to shape what that audience wants to hear.

Contact True Interactive

Do you need help making decisions about advertising on social? Contact us.

How Brands Can Be Meaningful during Unprecedented Times

How Brands Can Be Meaningful during Unprecedented Times

Advertising

When a disruption hits, businesses face the challenge of how to stay engaged with people in a meaningful and appropriate way. The question isn’t simply, what should they say? It’s also, how should they say it? Brands need to walk a fine line. They don’t want to launch advertising and organic content that comes across as tone deaf. At the same time, offering words of comfort, if done clumsily, might sound insincere. The COVID-19 pandemic is not the first time businesses have faced this challenge, nor will it be the last. And businesses are successfully rising to the occasion.

You might already be familiar with the Ford Motor Company’s response to coronavirus, in which the brand scotched suddenly irrelevant March Madness ads and focused on the simple message that payment relief is available to customers affected by COVID-19.

Here are some additional examples of brands striking the right tone when they reach out:

Hanes: Keeping It Simple

Hanes has kept things short and sweet in social media announcements that lay out the facts: namely that the company is retrofitting some of its production facilities to make medical masks. The global apparel manufacturer, which has dedicated factories normally devoted to the production of tee shirts and sweatpants to that of masks, expects, at peak output, to manufacture approximately 1.5 million masks a week. The production switchover is certainly laudable. At the same time, it can be awkward for a brand to share this kind of news without falling prey to being sentimental or committing a or humblebrag. Hanes manages to avoid both pitfalls by sticking to the facts, even as the business demonstrates its grasp of what it means to be human: the post ends with an appeal to practice not only social distancing, but also kindness.

Budweiser: Walking the Walk

A crisis demands that we dig deep for our noblest responses, and Budweiser respects that impulse in a recently released ad. Over a piano score, the brand honors those who are stepping up in this age of COVID-19, from healthcare workers to musicians providing joy via shelter-in-place balcony serenades. But Budweiser doesn’t stop at a shout-out. In an acknowledgement that sports are currently on pause, the ad uses sports team names (e.g., Warriors and Angels) to  describe the heroes of COVID-19. Then Budweiser goes on to announce the company’s shift of sports investments to “help our heroes on the front lines/By using stadiums to host American Red Cross blood drives during the COVID-19 crisis.” Budweiser understands the power of not only naming the heroes, but being one.

Little Caesar’s: Still Open, Still Safe

Restaurants everywhere have been rocked especially hard as shelter-in-place mandates have taken hold. Unfortunately for them, confusion has often arisen as to what shelter-in-place restrictions actually mean. Is restaurant food available? And if it is, is it even safe to eat? Little Caesar’s speaks to these questions and fears in a tightly edited 15-second spot that provides reassurance on several levels. First, as opening shots of happy eaters over the years attest, Little Caesar’s encourages viewers that the pizza has always been, and continues to be, delicious and available. From there, the ad moves quickly to the promise that the pies are “never touched after [cooking]” and “available by non-contact carryout and free delivery.” Little Caesar’s knows that familiar pleasures like pizza bring solace in times of uncertainty; their ad provides comfort and practical intel in equal measure.

Jack Daniel’s: Reflecting Our Current Reality

Jack Daniel’s encourages social distancing in a recently released spot that depicts loved ones continuing to connect from afar in innovative, goofy, and moving ways (sometimes, but not always, over happy hour). In a series of vignettes set against the backdrop of Cyndi Lauper’s song “True Colors,” Jack Daniel’s manages to celebrate the resourcefulness of social humans being asked to temporarily be the exact opposite. The ad wraps up with a simple written coda: “Dear Humanity, Cheers to Making Social Distancing, Social. With Love, Jack.” Jack Daniel’s understands what we’re missing, and in reminding us of the ways we can still connect, instills hope.

Contact True Interactive

These demonstrations of support and sympathy matter. And when the crisis does eventually subside, people will carry within them a feeling of how they were treated. As you work to connect with and support your customers, during the age of coronavirus and beyond, don’t hesitate to reach out. We can help.

Don’t Go Dark During the Coronavirus Crisis

Don’t Go Dark During the Coronavirus Crisis

Advertising

As businesses scramble to adjust to the spread of COVID-19, some are halting their online advertising, according to Search Engine Land. But pausing online advertising could be a big mistake. Instead, businesses should consider how they might need to change their online advertising approaches.

In fact, people are engaging online more than ever as practices such as social distancing take hold. For example, as discussed in Digiday, at least one agency reports big upticks in online engagement with Instagram content as people spend more time online. Vodafone reports internet usage surging by as much as 50 percent in some countries. And audience engagement online will only increase.

Our advice to advertisers:

  • Don’t go dark during the COVID-19 outbreak. Do adapt your content to be appropriate for the times we are living in (see our tips below). But going dark will hurt you in the long run, especially after the crisis subsides.
  • Navigating a fast-changing environment. Your customers’ lives have changed dramatically. But don’t assume that they want to ignore you as they manage that change. Depending on what kind of business you are in — online streaming, say, or online commerce — they may welcome hearing more from you as they practice social distancing. (In fact, when it comes to getting the news during COVID-19, people are more likely to trust a company over the government or media, according to Edelman.)

Considerations for Advertisers to Keep in Mind

The irony of the current coronavirus upheaval is that people, social animals at heart, are being asked to maintain distance just when they need to feel connected, even reassured, the most. Brands that continue their outreach will want to think about the following as they pursue their campaigns:

  • Look at the content you are sending and be prepared to adapt it. Are your offers in sync with what people need right now? For example, it makes sense for a restaurant to ramp up advertising about the speed and effectiveness of its delivery services.
  • Mind your tone. People don’t want to hear more gloomy reports of disruption. But an overly salesy message will flop. And any ad that seems like it is capitalizing on a health scare will backfire spectacularly. Don’t ignore the elephant in the room. As Kristen Ruby, CEO of Ruby Media Group, wrote recently in Adweek, “If people are afraid, now is not the time to pretend they aren’t. Additionally, it is also not the time to market to a state of fear or panic.” But do be as re-assuring as you can. It is OK to let people know you are there for them, and it is OK to talk about steps you might be taking to help in a time of crisis. In addition, be careful about your use of visuals. By now your audience is already overwhelmed by news media stories with photos of people wearing face masks.
  • Think ahead. You don’t want to be caught flat-footed when consumers shift their behaviors again as the current disruption subsides. And subside it will; not knowing when is different from not knowing if.
  • Adapt to a new normal — for now. Every day brings changes that affect consumer behavior. As brick-and-mortar stores have elected to close their doors or reduce hours, consumer spending has declined. But as PMG reports, “Online traffic increases help pick up the slack against store closings, work from home operations, and social distancing efforts. We’ve seen upward ticks between six to 18% depending on the scenario.” Similarly, according to eMarketer, digital media consumption is expected to increase: “The spread of coronavirus is likely to boost digital media consumption across the board as people spend more time at home and communicate in person less.” Platforms such as YouTube are likely to experience a surge in use. How well are your online campaigns suited for viewing on these media platforms? How well is your brand suited to online shopping, period? (For a deeper perspective on how one business has adapted to disruptions over the years, read this Advertising Age article about how Walmart learned from disasters such as Hurricane Katrina to change the way it does business and markets itself.)

Contact True Interactive

As you wrestle with questions and the inevitable changes coronavirus brings to daily life— and the rules of engagement — don’t hesitate to reach out. We can help.

Photo by John Schnobrich on Unsplash

Outsmart Your Competitors with Manual Bidding

Outsmart Your Competitors with Manual Bidding

Advertising Google

Automated bidding with Google Ads continues to take hold among advertisers. And it’s easy to see why: with automated bidding, Google does all the heavy lifting. But my advice to advertisers is to proceed carefully with automated bidding. In fact, as businesses around you adopt automated bidding, you might want to do manual bidding carefully and thoughtfully. Zig while your competitors zag.

For context: with an automated bid strategy, Google Ads automatically optimize bids based on a simple goal that the advertiser sets. But with manual bidding, an advertiser sets a maximum CPC bid at the ad group or keyword level. In addition, the advertiser can use targeting to modify bids based on variables such as income, location, and time of day, among others. Google’s own website mentions how automated bidding saves time and effort. And that’s certainly true. But, also consider this:

  • If you adopt automated bidding, you’re competing with everyone else using the same tool. You’re using the exact same algorithm that other advertisers are using, which eliminates your ability to gain a competitive edge by customizing your own bid strategy.
  • With automated bidding, you miss an opportunity to achieve the results that you can get with manual bidding. We know from our client work that manual bidding gives an advertiser more flexibility and control. For example, with manual bidding, you can set and adjust bids based on multiple KPIs (such as online orders and online leads). By contrast, with automated bidding, you give Google one goal, and Google sets your bid based on that goal. That’s it. No flexibility. No nuance. In addition, manual bidding lets you set your own maximum CPC for your ads and adjust them as needed. You are in the driver’s seat.

At True Interactive, we are zigging while the others zag with bid strategies. We have used manual bidding for clients and have experienced dramatic increases in year-over-year results. For one of our clients, a cable company, we realized a 67-percent year-over-year increase in online orders and an 80-percent increase in online leads thanks partly to using manual bidding. Why? Manual bidding has enabled us to adjust bids as needed based on our customer acquisition experience and knowledge of the client’s industry. We can be more targeted in our approach, refine our KPIs, and adjust our bids as needed.

Contact True Interactive

Bottom line: as more competitors use automated bidding, we see opportunities to outsmart them and achieve better results with manual bidding. Contact True Interactive to learn more.

Quibi, the Newest Disruptor: Advertiser Q&A

Quibi, the Newest Disruptor: Advertiser Q&A

Advertising Video

Just when you thought you had a handle on content streaming (Netflix: check, Disney+: check), a new player has emerged with the potential to shake things up all over again. Backed by a boatload of cash and the imprimatur of Hollywood royalty like Steven Spielberg, Quibi is poised to carve a unique niche in a crowded field. Read on to learn more.

What Is Quibi?

 

Quibi is a new premium streaming service that imposes a cap on programming time: the name Quibi, in fact, is shorthand for “quick bites” of video. Quibi aims to showcase stories of 10 minutes or less; content is meant to be viewed specifically on one’s mobile phone. The platform, founded by chairman Jeffrey Katzenberg, has installed tech vet Meg Whitman as the CEO, and investors include studios like Walt Disney Co. and WarnerMedia.

What Kind of Content Will Be on Quibi?

Given the unique mobile phone focus, Quibi will be generating all new content. As Whitman tells Marketplace, “We will be the first streaming service that launches without a library.” As Whitman sees it, starting from ground zero means an opportunity to create something truly fresh: “We have . . . invested significantly in content. This is all about finding the great stories, attaching the great actors and actresses to it and getting them excited about doing something entirely new.”

Quibi expects to deliver 175 shows and 8,500 episodes in its first year. The content promises to be a diverse mix, from long-form narratives to reality programming, documentaries, food shows, and daily news programs. Given Quibi’s format, the long-form narratives will be delivered in bite-sized chunks, serial fashion (think Dickens and the serial way he delivered novels like Pickwick Papers). Whitman is quick to stress that short format doesn’t mean inferior quality. “Nothing’s lesser about the movies [we’re developing] other than the chapterized way we deliver them,” Whitman says.

Content can be downloaded, so users won’t need an active Internet connection to view programming. And quality of the viewing experience is a prime mandate. As Whitman told Marketplace, “[P]eople are watching a lot of videos on their mobile phone today, but it’s an uneven experience. Sometimes, if you’re holding the phone in portrait, it’s a little postage-stamp size, then you turn it horizontally, it’s got big black lines. Some content is only available in portrait, some is only available in landscape . . . we have to be able to have seamless portrait-to-landscape rotation with full-screen video.” To that end, the company is employing what Whitman calls “compression technology,” and reportedly working with Google to ensure flawless video streams. Whitman also notes, “[W]e shot, obviously, to the aspect ratio of the phone.”

How Is Quibi Different from YouTube and Other Platforms?

As noted, story lengths on Quibi are capped at 10 minutes. And Quibi content has specifically been created for viewing on a mobile phone.

There is a distinction between what Quibi promises and the content made for mobile phones on free platforms like, say, TikTok. Services like TikTok offer user-generated content. By contrast, filmmakers like Steven Spielberg and Catherine Hardwicke are collaborating with Quibi to create programs designed specifically for viewing via Quibi, sometimes even at certain times: “Spielberg’s After Dark” series will only appear on the service at night, for example. An untitled show devoted to zombies is reportedly being discussed with Guillermo del Toro. User experience will also be informed by how customers hold their phones: changing from vertical to horizon orientation will change what the viewer sees.

Who Is the Target Audience for Quibi?

The target audience is Millennials—ages 18 to 44. The idea is that the platform will especially appeal to consumers on the go: someone waiting in line at the bank, say, or taking a quick bus ride during which 10 minutes of content might be the perfect diversion.

When Does Quibi Launch?

The platform is due to launch in the United States on April 6, 2020, but as Whitman notes, “you don’t have to wait till then to get involved.” On Quibi.com, you can learn about new shows, the technology, and any milestones before launch date. Whitman adds, “We’ll let you know on April 6 when you can download the app from either the Apple App Store or Google Play Store.”

What Advertising Opportunities Exist on Quibi?

There will indeed be opportunities for advertisers, as users will be invited to choose between Quibi with or without ads. The service will launch, for viewers in the United States, at $4.99 a month with ads, $7.99 a month without. Whitman shares with Marketplace, “We think that most [consumers] will pick the ad-supported version because it’s a very light ad load. It’s only 2.5 minutes per hour of watching, which is much less than prime time TV, which is 17.5 minutes of advertising for every hour that you watch.” Ads will appear before a Quibi show begins and last six, 10, or 15 seconds. They will be unskippable. Advertisers already onboard include Discover, General Mills, Taco Bell, Walmart, and PepsiCo.

Quibi programming will also come with ratings to help advertisers determine whether a show is geared to mature audiences. At the WSJ Tech Live conference in October 2019, Whitman said, “[Marketers] can feel safe that their brand shows up next to content that they’re OK with.”

And because Quibi programming is structured around serialized chapters, the platform is looking into an alternative where advertisers could serialize their ads, too.

What Kind of Reception Has Quibi Received?

It’s a mixed one. Naysayers insist the endeavor is a gamble, and that the subscription fee will discourage consumers used to video content that can be viewed for free on platforms like YouTube. Katzenberg, however, is confident. “I think we are doing something that is now such a well established consumer habit,” he told NewsDio. “There are 2.5 billion people walking with these televisions in their pocket. They are already watching a billion hours of content every day. I just know that it will work.”

Quibi has tried to get out in front of its critics by building visibility through some (presumably expensive) ads during the 2020 Super Bowls and Oscars.

Not all watchers have been impressed, as this Verge article discusses.

There’s no denying Quibi has attracted some heavyweights to create content. Will consumers be willing to pay for that content? Only time will tell.

Contact True Interactive

Curious about Quibi and the opportunities this new platform affords? Contact us.