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Sorry, Internet,<br />TV Ads Are Wildly Underpriced<br />
About Simulmedia<br />Targeted ad network for linear TV<br />Leverages set-top-box, sales data and econometrics<br />Initi...
TV Audiences Not Leaving for Web<br />3<br /><ul><li>Rather, the Web is coming to TV
Live TV is growing faster than the Web video
But … 40% of TV spots generates less than 2% of ad revenue for most TV companies
Why?
How would an Internet company solve that problem?</li></li></ul><li>4<br />Segmenting Audiences Like the Web: TV Promotion...
Finding Target Audiences Like the Web<br />Receptive– Belonging to audience segments with higher tune-in propensity and du...
7<br />Measuring Ad Receptivity Like the Web<br />Core Audiences Less Likely to Tune Away from Relevant Ad<br />DateNighte...
8<br />Optimizing Frequency Distribution Like the Web<br />
Measuring Conversion by Segment Like the Web<br />9<br />
10<br />Measuring Sales Results Like the Web<br />Correlation of TV advertising to ticket sales (all audience): <br />r = ...
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IGNITION: Simulmedia presentation by Dave Morgan

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IGNITION: Simulmedia presentation by Dave Morgan

  1. 1. Sorry, Internet,<br />TV Ads Are Wildly Underpriced<br />
  2. 2. About Simulmedia<br />Targeted ad network for linear TV<br />Leverages set-top-box, sales data and econometrics<br />Initial focus on entertainment vertical<br />Investors: Avalon Ventures, Union Square Ventures & Time Warner (TWX)<br />DATA<br />NATIONAL FOOTPRINT<br />Enabling national ad campaigns of:<br />& other providers<br />30MM-100MM HHs<br />15MM+ STBs<br />30MM viewersProjectable to all US Households<br />2<br />
  3. 3. TV Audiences Not Leaving for Web<br />3<br /><ul><li>Rather, the Web is coming to TV
  4. 4. Live TV is growing faster than the Web video
  5. 5. But … 40% of TV spots generates less than 2% of ad revenue for most TV companies
  6. 6. Why?
  7. 7. How would an Internet company solve that problem?</li></li></ul><li>4<br />Segmenting Audiences Like the Web: TV Promotion<br /><ul><li>The most receptive Simulmedia Segments (in terms of tune-in propensity and duration) are combined to build the target audience for the relevant program to be promoted</li></li></ul><li>5<br />Segmenting Audiences Like the Web: Movies/Theatrical<br /><ul><li>Simulmedia classifies potential theater-goers into audience segments, based on genre and thematic preferences</li></ul>Viewing Duration<br />Viewing Propensity<br />
  8. 8. Finding Target Audiences Like the Web<br />Receptive– Belonging to audience segments with higher tune-in propensity and duration<br />Available – Observed to tune-in to television on that day and timeslot<br />Committed - Tuned in to competing programs consistently on that day and timeslot (and removed from the target)<br />Target– Available, Receptive,<br />& Uncommitted Viewers<br />Receptive<br />Target<br />Committed to Competing Programs<br />Available<br />6<br />
  9. 9. 7<br />Measuring Ad Receptivity Like the Web<br />Core Audiences Less Likely to Tune Away from Relevant Ad<br />DateNighters were 35% more receptive to television ads for Eat Pray Love than ActionHeroes<br />
  10. 10. 8<br />Optimizing Frequency Distribution Like the Web<br />
  11. 11. Measuring Conversion by Segment Like the Web<br />9<br />
  12. 12. 10<br />Measuring Sales Results Like the Web<br />Correlation of TV advertising to ticket sales (all audience): <br />r = .91<br />
  13. 13. 11<br />Optimizing to High ROI Audiences Like the Web<br />Correlation of TV advertising to ticket sales (ActionHeroes): <br />r = .95<br />
  14. 14. Results: Data Targeting Significantly Beats Sex/Age planning/pricing by +75% … and TV industry is just getting started<br />12<br />96% Lift<br />82% Lift<br />25% Lift<br />Program 1<br />Program 2<br />Program 3<br />70% Lift<br />Program 7<br />83% Lift<br />15% Lift<br />105% Lift<br />Program 5<br />Program 4<br />Program 6<br />

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