Quibi, the mobile video streaming service due to launch next month, has capped its advertising partnerships for its first year at 10 companies, according to executives.
Why is this important: Quibi sold its first year of ads – $ 150 million in revenue – ahead of its April 6 launch. This number is set through pre-sold advertising agreements with these 10 companies.
Details: The 10 exclusive partners are Progressive, Discover, General Mills, Procter & Gamble, AB InBev, Taco Bell, Pepsi, T-Mobile, Google and Walmart.
- When launching, Quibi will feature ads from over 25 brands owned by these 10 advertising partners, including Lays, Doritos, Tide, Cheerios, Nature Valley, Yoplait, Pepsi, Mountain Dew, Charmin, Budweiser Light and Old El Paso.
- It will not increase the number partners in its first year, although those partners may introduce new brands to the platform during this time. For example, if Google wanted to start serving YouTube or Waymo ads, that would be okay.
- As part of its launch pitch, Quibi has promised advertisers that they will be the exclusive brand for its vertical, which means that, as it is launched with Procter & Gamble as a partner, it will not run any Unilever ads.
How it works: Businesses can run a pre-roll ad that can be 6, 10, or 15 seconds long before an episode of any show. Advertising load means that each brand will exclusively sponsor each episode of a show. The platform will not have mid-roll ads or ad modules.
- Longer ads are recommended for longer Quibi shows which are in the range of 5 to 7 minutes. Shorter announcements are recommended for shorter programs lasting 1 to 5 minutes.
- In total, Quibi will last 2.5 minutes advertising for each hour of programming. Its advertising load is low compared to traditional television, which typically broadcasts about 16 minutes of advertising per hour. It’s more in line with the ad loads on social media sites.
- All announcements are non-skippable.
Quibi did not accept any political advertising in his first year of ad sales, according to a source close to his plans.
The big picture: All advertisers will be encouraged to take advantage of Quibi’s ‘turnstyle’ technology, which allows users to seamlessly switch between vertical and horizontal video on their phones.
- Advertisers have the same tools and capabilities as content creators, including access to Quibi experts who can help them create “turnstyle” ads.
- So far, the creators seem to like it. “We love this new format and look forward to continuing to tell our story in Turnstyle,” said Rob Reinerman, Brand Director at Charmin.
Quibi’s advertising efforts are led by former Flipboard executive Nicole McCormack, who reports directly to Meg Whitman, CEO of Quibi.
- “I am impressed with the speed and enthusiasm with which our brand partners have approached and embraced these new formats and capabilities,” says McCormack.
- Previously, McCormack reported to Tim Connolly, the former head of advertising and partnerships at Quibi, who left in August.
Be smart: Whitman told Axios in an interview in January that she expects the majority of subscribers to Quibi’s service to choose the ad-supported tier, which puts more pressure on the company to get a good experience. advertising.
And after: The company is currently in a legal battle over its patent pending “Turnstyle” technology.
- Eko, a media and technology company, has accused Quibi of patent infringement, according to a lawsuit filed in federal court in California on Monday.
- A Quibi spokesperson said: “Our Turnstyle technology was developed in-house at Quibi by our talented engineers and we have, in fact, been granted a patent for it. These claims have absolutely no basis and we will vigorously defend against them in court. ”
Go further: Quibi unveils “Turnstyle”, its flagship mobile video format