Daniel Frankel:
Hello. I'm Daniel Frankel. I'm the publisher and co-founder of Next TMT. Today, I'm appearing on behalf of StreamTV Studio, and I'm real pleased to present our next guest, Justin Fromm. He's head of insights for Samsung Ads. As such, he has access to millions of Samsung smart TVs that give him incredible insights into all sorts of consumer behavior in regards to streaming and linear television. Justin, you were here at the show making a presentation today on your latest findings. Talk a little bit about that for starters, if you don't mind.
Justin Fromm:
Hey, Daniel. How are you?
Daniel Frankel:
Good. Glad to be here.
Justin Fromm:
Yeah. Me, too. It's been a great conference.
Daniel Frankel:
It really has.
Justin Fromm:
Yeah. So I was really excited to be here today. We were talking about some new research that we've been doing that demonstrates that audience duplication in campaigns that reach both streaming and linear have a potential revenue opportunity for advertisers of $141 billion.
Daniel Frankel:
Billion?
Justin Fromm:
Billion with a B.
Daniel Frankel:
Like a Carl Sagan billion.
Justin Fromm:
Yes. Carl Sagan billion.
Daniel Frankel:
That's-
Justin Fromm:
Billions and billions.
Daniel Frankel:
That's a lot of money. Lots of consequences.
Justin Fromm:
Yes. Lots of consequences.
Daniel Frankel:
Lots of [inaudible 00:01:20].
Justin Fromm:
For sure.
Daniel Frankel:
Yeah.
Justin Fromm:
Yeah, and that's because in the analysis that we do, where we have line of sight across all these ad campaigns that run on linear and streaming through our first-party data, we're able to identify the portions of those campaigns that are reached to streaming-only viewers, linear-only viewers, and then viewers who are actually reached with those ads both on streaming and linear. It turns out that 41% of campaign reach-
Daniel Frankel:
Oh.
Justin Fromm:
Yeah. Not insignificant. Across six heavy TV advertising categories, 41% of reach is duplicated across streaming and linear.
Daniel Frankel:
When you say duplicated, the audience is seeing it twice on two different platforms.
Justin Fromm:
Exactly. Right. That same audience is seeing it on linear, and then they're seeing it on streaming.
Daniel Frankel:
Not so efficient, as they say.
Justin Fromm:
Totally inefficient. Right? And so if you can shift that media spend, which is already spent. Right? We're not talking about net new dollars. If you can shift some of that 41% to new audiences, reach a larger proportion of your target audience, the potential revenue based on return on ad spend is that Carl Sagan billions and billions over.
Daniel Frankel:
Right. So a better way of doing it, we're still going through the garden hose of that. I'm guessing that's not as simple as just sliding over your dollars. You have to approach the market in different ways.
Justin Fromm:
Right. Absolutely. Right? I mean, I think we're at a position where streaming is well past being new in the marketplace. We all understand that it is the future. It is the whole conversation about everything at this conference. But when it comes to advertising, right, there are a lot of people who are still catching up. Right? Nielsen, in their ad-supported gauge analysis, found that 58% of ad minutes are served to linear TV. Right? And so even just on the face of it, that 58%, you know, based on how much viewing is happening on streaming, intuitively-
Daniel Frankel:
What if you look at viewing? It's stuck the opposite way. Yeah.
Justin Fromm:
Right. Exactly. And so that's really kind of the underpinning of why that duplication occurs and that inefficiency is there.
Daniel Frankel:
We don't have a ton of time. It's an impossibly broad topic, and it's one of the key foundations of what you do, try to understand consumer behavior. But if you could quickly encapsulate, how is the consumer changing as they make streaming more part of their everyday lives?
Justin Fromm:
I mean, I think that's incredibly important, because TV is digital.
Daniel Frankel:
Right.
Justin Fromm:
Right? Americans today, they're building a new framework for how they think about television from folks, maybe you and I, who might know who Carl Sagan is, think about television. Right? They have an expectation that all of their media will be interactive, and they have that with all of their viewing. If you think about Gen Z, they've only ever known interactivity and on-demand viewing.
Daniel Frankel:
Right.
Justin Fromm:
We're still mostly serving 30 and 60-second ads. The future is interactive. And so that's where Samsung Ads is taking our business. We're finding new ways to help create interactive solutions so that advertisers can interact with their audiences, but also, really importantly, audiences can interact with those brands. Because that's their expectation.
Daniel Frankel:
Right. It's not a lean-back audience anymore. It's the sort of leading edge of home ownership and decision-making is now a millennial-age audience that came up with the internet.
Justin Fromm:
Absolutely.
Daniel Frankel:
It makes a huge difference in what they expect from advertising.
Justin Fromm:
Absolutely. Right, and they know what's available on their smart TVs. They know that the operating system offers apps not just for viewing, but for educational content, for fitness, for health, and for smart home controls. They're all kind of adopting this behavior. The future of the home is that TV is not the center of the home, but it actually is central to the home.
Daniel Frankel:
Right. So what are you working on now? What's the next, without disclosing trade secrets, what's your big-
Justin Fromm:
Well, one of the big announcements that we made at our new front is shifting our thinking about CTV from connected TV to conversion TV. Right? So because of this interactivity, because of the expectations that consumers have around what their TV and their media does for them, and because of the advancements in technology, we are bringing the buy solution to the television, compressing the purchase funnel and building solutions so that TV, which is a tremendous brand-building tool, can build strong brands for the future, but also drive real revenue for the short term.
Daniel Frankel:
Well, Justin, I love your stuff. Every time I engage with it, I learn something new. Thank you so much for appearing on StreamTV Studio today, and we'll see you next time on StreamTV Studio. For Justin Fromm of Samsung Ads, I'm Daniel Frankel. Thank you.