Fox to Launch New Six-Second Ad Format for Digital Content and TV
20 June 2017 - 04:15AM
Dow Jones News
By Alexandra Bruell
Fox Networks Group is preparing a new six-second ad format for
digital platforms and eventually traditional TV, mirroring an ad
format recently adopted by Google's YouTube, the company said.
TV ads are typically longer than 15 seconds, but as viewing
shifts online, where people are skipping or blocking ads,
advertisers and media companies have experimented with new ad
formats and strategies.
"We're getting to a place where there's just too much noise and
people are seeking environments where there is a lot less clutter,"
said David Levy, executive vice president of nonlinear revenue at
Fox Networks Group. "How do we get more efficient with consumers'
time and attention? Everything you see us invest in has that as a
backdrop and premise."
The ad format should be ready by October for shows and content
viewed through digital and on-demand platforms, said Mr. Levy. For
example, he envisions the format working well for a "pre-roll" ad
that appears before long-form episodes viewed on-demand, or premium
sports content that could have more of a "viral effect" with a
shorter ad intro.
After a few months of testing, Fox could start selling the
six-second inventory to traditional TV advertisers, he said.
Fox, among other media companies, has experimented with formats
that encourage a consumer to interact with an ad, and has tried
reducing the number of ads it sells per show. For example, FX has
reduced commercial time from the previous year by 75%, said Mr.
Levy. Networks have also invested in technology and data that
offers advertisers more precise audience targeting across TV and
digital platforms.
The company, through its ad studio, will likely help advertisers
create content in the new format, as it does for its interactive
ads. About 85% of the Fox's interactive ads are produced by its
studio, while 15% are produced by agencies and advertisers, said
Mr. Levy. Fox said it's currently working through the pricing for
the shorter ad format.
While he's expecting advertisers to embrace the shorter ads,
given consumers' growing frustration with interruptions, Mr. Levy
doesn't expect six-second ads to replace longer, 15- or 30-second
ads common in TV.
"The best marketing we've seen, and we now are able to measure,
is when we're delivering multiple ad formats with different time
lengths," he said. "The biggest thing will be making sure that we
understand, and advertisers understand, the true value of what this
kind of ad format can deliver."
Fox Networks Group includes the Fox broadcast network, 20th
Century Fox Television and Fox Cable Networks, among other
groups.
21st Century Fox, parent of the Fox Networks Group, shares
common ownership with Wall Street Journal-owner News Corp.
Write to Alexandra Bruell at alexandra.bruell@wsj.com
(END) Dow Jones Newswires
June 19, 2017 14:00 ET (18:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Fox (NASDAQ:FOXA)
Historical Stock Chart
From Feb 2024 to Mar 2024
Fox (NASDAQ:FOXA)
Historical Stock Chart
From Mar 2023 to Mar 2024