BRANDED CONTENT:NAVIGATING A NEW FRONTIER

JULY 2017

The State of Branded Content for TV

It’s no secret that media companies continue to be challenged with finding additional sources of inventory and revenue. Based on ListenFirst research, branded content on social media is showing promising results with an enormous opportunity for both advertisers and media companies to bring new value to the advertising ecosystem.

This recent study of branded content on Facebook for the TV industry shows impressive returns on engagement for brand advertisers. And, while a rapidly growing part of a media company’s offering for advertisers, branded content still represents a small percentage of total social inventory media companies could be monetizing today.

This shows an exciting, untapped market that—until now—has not been studied.

In this report we document the adoption of branded content on social across the media industry. We also examine how branded content is being implemented, evaluate its effectiveness, identify the advertisers leveraging this new frontier, the networks already monetizing it, and highlight early best practices.

About ListenFirstListenFirst is the most comprehensive enterprise social analytics solution. The ListenFirst platform analyzes and unites billions of real-time digital and social media signals across more than 50,000 brands and 20+ industries--from owned, earned, paid, conversation, and video content engagement to behavioral analytics, brand affinities and influencer tracking--to give brands insight into developing content, setting KPIs, optimizing strategy and performance, and driving the bottom line. Founded in 2012, ListenFirst is trusted by leading global brands including Viacom, NBA, Madison Square Garden, 20th Century Fox, Amazon, Michael Kors, and Warner Bros, and is regularly featured in The Wall Street Journal, Variety, Ad Age, Forbes and more. For additional information, visit www.listenfirstmedia.com.

2

Growth of Branded Content

679

973

1,171

0

200

400

600

800

1000

1200

1400

Q4 2016 Q1 2017 Q2 2017

VOLUME OF BRANDED POSTS (FACEBOOK)

The volume of branded content published by TV networks over the past three quarters has grown steadily, with a 72% jump in Q2 2017 compared to Q4 2016. But, while the number of posts continues to rise branded content is still in its infancy. Today, branded content for the TV industry represents only <1% (0.71%) of all posts.

3

Effectiveness of Branded Content

3,689

4,853

0

1000

2000

3000

4000

5000

6000

Non-Branded Posts Branded Posts

AVERAGE RESPONSE PER POSTQ1 & Q2 2017

Despite its infancy, branded content is showing promising results. In the first half of 2017, branded content generated 32% more responses, on average, than non-branded posts on Facebook. It is clear that TV networks and programs have been investing in different ways by which they can integrate brands into content, resulting in higher quality of branded content, more seamless integration, and ultimately, more appeal to and engagement by fans.

4

Which Advertiser Categories Are Using Branded Content?

Automotive19%

Food/Bev/Restaurant17%

Entertainment-Film11%Retail

11%

Beauty/Health8%

Media Publishing7%

Travel/Hotel7%

Consumer Goods7%

Consumer Electronics7%

Telecom6%

ADVERTISER CATEGORIESH1 2017

In the first half of 2017, there were at least 25 different advertiser categories partnering with TV networks on branded content. These categories ranged from Government to Consumer Household Goods, Insurance, Telecom and Pet Care. The Automotive category, led by Toyota USA, dominated the advertiser category, followed by Food/Beverage/Restaurants, driven by Coca-Cola, and Film Entertainment.

5

Which Advertisers Are Seeing Returns?

Advertisers are seeing significant returns on engagement on posts when partnered with a TV network or program. For example, The Real Cost, a tobacco prevention campaign sponsored by the FDA, saw a 16x response rate in its partnership with Adult Swim. By leveraging Adult Swim’s already existing fan base, The Real Cost’s campaign, targeting at-risk teens in rural areas, is gaining awareness by sponsoring program tune-ins and teasers.

6

TOP SPONSORED POSTS H1 2017

Advertising Partner Program / NetworkPost Responses on Branded

Content on Program /Network Page H1 2017

Average Responses Per Post on Advertiser

Page H1 2017

The Real Cost Adult Swim 765,918 4,697

Alien Adult Swim 375,580 2,549

M&M'S U.S.A. NBC 272,721 1,487

Lexus Grey’s Anatomy 269,711 3,417

Walmart Food Network 188,188 552

Pepsi Empire 176,619 2,936

Carl's Jr. Adult Swim 152,356 403

Wonder Woman Conan 134,603 7,868

M&M'S U.S.A. The Vampire Diaries 130,286 1,487

Old Spice Adult Swim 110,091 243

Which Media Companies Are Selling?

Media companies are discovering that branded content represents new inventory and new revenue that drives big returns for advertisers. Discovery tops the list of media companies using this channel for advertising partners, with networks Animal Planet, OWN, Discovery, and Science Channel paving the way for branded content. At ListenFirst, we expect the volume to grow as more media companies hone in on best practices.

7

TOP MEDIA COMPANIES BY VOLUME OF SPONSORED POSTS H1 2017

Media Company Number of Branded Posts H1 2017

Discovery 409

Viacom 346

Disney ABC 290

AETN 213

NBCUniversal 190

Time Warner 125

Scripps 116

CBS 99

AMCN 54

Media Companies Driving Advertiser Returns

Time Warner tops the list of media companies by average response per branded post thanks to the strength of content published by teen and millennial program favorites, Adult Swim, The Vampire Diaries, Riverdale, and Conan. The average response of the media giant’s branded posts are at least twice more effective than #2 Scripps, whose top sponsored posts ride on the social prowess of the Food Network and HGTV. 20th Century Fox follows closely behind Scripps with FOX’s Empire driving majority of sponsored post engagement.

8

TOP MEDIA COMPANIES BY AVERAGE RESPONSE PER SPONSORED POST H1 2017

Media Company Average Responses Per Branded Post H1 2017

Time Warner 25,560

Scripps 11,466

20th Century Fox 11,113

NBCU 5,729

AMCN 4,153

Disney ABC 3,596

Discovery 2,961

Viacom 2,178

PBS 1,594

TV Networks/Programs Driving the Highest Engagement

Adult Swim’s 15 sponsored posts in H1 2017 drove the greatest engagement among all other networks and programs, owing to the loyalty of the network’s audience. The Real Cost, Alien, Carl’s Jr., and Old Spice top the list of advertisers that benefitted the most from the network’s reach and engagement. Brand advertisers Lexusand Dove leveraged Grey’s Anatomy, while Pepsi and The Lincoln Motor Company drove Empire’s push to #3.

9

TOP TV NETWORKS/PROGRAMS FOR BRANDED CONTENT BY AVG RESPONSE PER POST

TV Program Average Responses Per Branded Post H1 2017

Adult Swim 111,949

Grey’s Anatomy 75,452

Empire 53,568

The Vampire Diaries 43,841

This Is Us 41,551

The Haves and the Have Nots 37,388

NBC 37,250

Impractical Jokers 26,902

Chicago P.D. 23,340

Food Network 19,837

Case Study Spotlight: Chevy and NBC’s ‘This Is Us’

NBC’s freshman hit ‘This Is Us’ grabbed the #5 spot in average response per branded post, earning top sponsor Chevy a significant boost in social engagement. Branded content sponsored by Chevy outperformed, on average, ’This Is Us’ non-branded content on Facebook, and performed better than all TV program posts by a staggering 830%.

Chevy #SHARETHEMOMENT & AFTERSHOW posts generated 2,502% more engagement than general Chevy brand posts. In Q1 2017, Chevy and ’This Is Us’ had the #2 branded content post with 107.6K responses on Facebook.

10

FACEBOOK POST BENCHMARKS H1 2017

Average Responses / Post Comparison to ‘This Is Us‘ / Chevy Posts

This Is Us – Chevy Posts* 41,453 ---

This Is Us – All Posts* 38,349 +8.1%

All TV Program Posts** 4,456 +830.3%

All TV Program Branded Posts** 7,813 +430.6%

All Chevy Posts* 1,593 +2,502.2%

*Average engagement per post based on campaign date range, 1/1/17 - 2/28/17**Average engagement per post based on all posts on TV program / brand Facebook page between 1/1/17 - 1/31/17

Best Practices

LEVERAGE ALREADY ENGAGED FAN BASES

Adult Swim knows how to put together a successful partnership. The network has deep knowledge of what their fans already love inserting sponsors into their social programming mix resulting in seamless integration that leaves fans wanting more. The Real Cost, the FDA’s tobacco prevention campaign aimed at teens and millennials, got a 16x boost in engagement by partnering with Adult Swim on Facebook.

11

DEBUT EXCLUSIVE AND ORIGINAL CONTENT

Make fans feel like brands are giving them something special. Pepsi, leveraging its sponsorship of FOX’s Empire, offers original content for loyal fans, giving them a front row seat into exclusive backstage parties. A Facebook post offering fans a glimpse into a behind-the-scenes recording with Jidenna landed in the Top 10 Branded Posts in H1 2017, drawing more than 176K responses and 14M views for FOX.

Best Practices (continued)

CAPITALIZE ON VIRAL SOCIAL TRENDS

Lifestyle networks like Food Network are capitalizing on popular online “DIY” videos to promote sponsored content. Sponsored posts with Dairy Good and Walmart earned the advertisers significant brand engagement, grabbing the #5 and #6 spots in the Top Branded Content Ranking for H1 2017. Brand advertisers leveraging this format include retailers like Target and Walmart, food brands such as McCormick Spice, Farm Rich, and A.1. Original Sauce, and even financial services and insurance brands such as Quicken Loans, Voya, and Geico.

12

Questions?

Contact Us! We’d be happy to help.contact@listenfirstmedia.com

Request a Demorequestdemo@listenfirstmedia.com

Or visit us on www.listenfirstmedia.comfor more resources and ratings or to sign up to receive our weekly newsletter.

13