The Future of
Table of Contents 2
Table of Contents
3 TV As We Know It Is Changing
5 TV Advertising’s Roots Run Deep
7 The Power Of TV As An Advertising Medium
8 Why Is The Future Of TV Now?
10 What Is Advanced TV?
17 Measuring TV’s Success
18 Set Yourself Up For Success
21 LiveRamp: IdentityLink For TV Makes People-Based Advertising a Reality
23 About LiveRamp
TV As We Know It Is Changing 3
TV As We Know It
Video has the power to evoke emotions in a way no other medium
can. According to a recent study by Oath1
, 62% of brands feel video
is the most effective marketing medium, and 40% of brands plan to
invest more heavily in video this year.
The marketing world has been turned upside down with the recent
news that digital media spend has finally surpassed that of TV. But
it is not because TV is shrinking—it’s because digital has grown so
much. TV is huge—a $178 billion2
global industry! The combination
of sight, sound, and motion has been around our entire lives, and is
now going through a dramatic and exciting transformation, led by
changing consumer behavior.
No longer are we only watching TV on a set-top box—people are
watching the content they love anytime and anywhere on tablets,
connected TVs, and mobile phones. As marketers, we can’t focus
on one siloed channel anymore. We have to think like consumers,
beyond screen size.
TV As We Know It Is Changing 4
Fortunately, as technology leaders focus on TV
advertising, the advent of TV-specific targeting and
analytics platforms is making this powerful medium
just as targetable and measurable as digital.
As a data-driven marketer, it’s an exciting time to not just
witness, but be an active participant in a major industry
change. We can’t label ourselves as merely “digital”
or “TV” professionals anymore; the lines are blurring
too much. This ebook arms you with the fundamental
knowledge you need to join the conversation and begin
executing people-based marketing everywhere.
“To plan digital video differently from television makes
no sense—it’s just an artifact of the old traditional/
digital divide that consumers moved past a long time
ago. It’s time to abolish that distinction and develop an
omnichannel video-buying strategy.”
— Jim Nail, Principal Analyst, Forrester
CRM Data for Targeting
Partner Data for Targeting
Data Providers for Targeting
Cross-Device Media Targeting
2018 DIGITALADVANCED TV
TV Advertising’s Roots Run Deep 5
Roots Run Deep
In 1941, the first TV commercial aired on NBC before the opening
pitch of a Dodgers and Phillies game. It was for Bulova watches
and the voiceover told viewers what time it was. The price of the
ad was $9. The astounding part of this story is not the ad itself,
nor the incredible price. It’s that for the past seven decades since
the first TV ad hit the airwaves, the way TV advertising has been
bought and sold has remained relatively unchanged.
Traditionally, programmers like NBC or ESPN have been responsible
for producing content that attracts audiences and advertisers.
Approximately 75% of the $72 billion U.S. TV advertising industry is
transacted between these programmers and advertising agencies
during the Upfronts. Like a futures market, agencies lock in program
inventory at the Upfronts based on simple age and gender
panel-based ratings predicting tune-in.
TV Advertising’s Roots Run Deep 6
What are the Upfronts?
Every year since 1962, the industry gathers
in New York City where networks preview
their upcoming programming to prospective
buyers. Along with their new TV schedule, the
networks also present ratings benchmarks
for each program. If advertisers believe the
content will attract their target audience, they
may buy the ad time “up front”—hence the
event’s name. Not only have the brands se-
cured the inventory, but if a program exceeds
the ratings benchmarks, they’ve locked in a
bargain since they bought on speculation, not
actual ratings. If a program flops, the network
must provide a make-good to deliver on the
eyeballs it had promised. Essentially, the
Upfronts are a futures market.
The Newfronts are the digital world’s take on
the Upfronts, coordinated by the IAB. Taking
place annually since 2012, the Newfronts
feature video content created outside of
the traditional TV ecosystem. The event
is designed to make TV marketers feel
more at home in this new space, and more
comfortable exploring digital content with a
TV budget. Although it is similar in structure
to the Upfronts, the Newfronts aren’t a
futures market. The content is sold like digital
video—by impressions served—so there is
no concern that a media buyer will miss the
opportunity for an entire year and the year’s
What are the Newfronts?
The Power Of TV As An Advertising Medium 7
The Power Of TV As An
The storytelling power of TV advertising
has not changed over the years.
Based on what we understand about the brain, video’s effectiveness is backed by science,
and it explains why video often outperforms other mediums when it comes to storytelling.
The emotional power video has on its viewers is based on multiple psychological factors:
“What we call ‘watching’ might well be
called ‘feeling’ a TV show.”
- Karen E. Dill-Shackleford, PhD3
As human beings, we are especially sensitive
to movement for the purpose of survival.
Although we live in a modern society, our
sensitivity to motion that once alerted us to
potential prey is still active. This means an
advertisement with motion, like a video, will
catch a consumer’s eye much better than a
static image, like a digital banner ad.
This psychological factor essentially means
a viewer can “catch” the emotions of another
person. Emotional contagion is on display
when someone watches a horror movie.
The viewer may feel the fear portrayed by
the actor or implied by the music, even if
they understand that in reality they are
If a “character” is portrayed as someone we
feel similar to, we feel more invested in the
story. The same applies in advertising.
Why Is The Future Of TV Now? 8
Why Is The Future
Of TV Now?
We have established that television
advertising is a powerful medium, and a
tool every marketer should use to tell a
great story. But the days are numbered for
the traditional ratings-based TV ad-buying
process, largely based on changing
People are viewing more content than
ever before—as much as a full-time job,
according to Deloitte’s 2018 Digital Media
. But they are watching it
This fragmented viewership is making the
old viewership ratings system, which has
historically acted as the industry’s currency,
incomplete and undependable. As David
Levy, president of Turner Broadcasting,
puts it, “We are in a new era of media,
and it’s time to retire the Nielsen television
metric. While it undoubtedly served its
purpose, it no longer fully captures how
to successfully measure an audience in
Sellers aren’t getting credit for all the
viewers a program may truly have. And
buyers can’t trust the ratings to tell them
the whole story of who is in front of the
screen. Viewership fragmentation is a
problem, one forcing the entire industry
to reevaluate how ads will be bought,
sold, targeted, and measured.
GRP: Gross Ratings Point
A standard measure of impact, calculated
by multiplying the reach and frequency
of the target market. Example: If you
advertise to 40% of the target market
and give them four exposures, you
would have 160 GRP.
Americans watch 38 hours
per week of video content.
39% is streamed
and 61% is on live TV8
The New Era Of TV Viewers
Why Is The Future Of TV Now? 9
Consumers aren’t the only ones changing
their behavior. With the rise of data-driven
advertising, especially on digital channels,
brands are expecting more from their media
targeting. Their expectations for TV are
now the same as digital: targeting with
precision and flexibility. Brands want to
tap into the power of their own CRM data,
or leverage trusted second- or third-party
data, to deliver a consistent omnichannel
experience across screens. This has intro-
duced an explosion of available technologies
to improve television advertising.
Savvy marketers are shifting their budgets
to keep up with consumer behaviors. With
people watching slightly less conventional
TV, traditional linear TV spend is expected
to decline by 2% annually over the next
but that doesn’t mean the dollars
are leaving TV altogether. They are being
reinvested in more data-driven capabilities,
like addressable TV, which is expected to hit
$3.04 billion in 2019.10
As more consumers
access content in new ways, OTT providers
will also continue to see ad spend grow.
For example, Hulu’s ad revenue will pass
the billion dollar mark this year.11
With a massive audience of hyper-connected
people, data at our fingertips, and household-
level targeting now available to reach people
across all screens, the future of people-based
TV advertising is here.
This audience toggles
between streaming services
and a reduced TV subscription
package, but have yet to fully
“cut the cord.”
Those who have paid for a TV cable
subscription in the past, but have
now “cut the cord” and are utilizing
other methods, like over-the-top
(OTT) services, to get the TV
content they want.
A typically younger
audience who has never
paid for a traditional TV
What Is Advanced TV? 10
What Is Advanced TV?
Advanced TV is often used as an umbrella term that
refers to various tactics. In order for a solution to be
considered part of the advanced TV ecosystem, there
are two requirements: data and automation.
What Is Advanced TV? 11
Advanced TV = Data + Automation
Does the solution enable advertisers to use consumer data that goes
beyond age and gender? Does the offering leverage an automated,
streamlined process or platform outside of the Upfronts, improving
the speed or targeting precision of the campaign? If the answer is yes
to both of those questions, then it can be considered an advanced
TV tactic. Let’s take a look at the primary types of advanced TV
opportunities available today.
What Is Advanced TV? 12
Another word for linear is “live.” Simply put,
think of linear as “TV by appointment.” You
watch the program when it is scheduled to
air. It may be the most traditional way for TV
content to be delivered, but it also remains
the primary way most individuals consume
TV content, with over 77% of pay TV viewers12
watching like this daily. Because of its
massive scale, with the ability to reach more
than 196 million viewers/95 million house-
holds, a large portion of TV advertising spend
is still allocated to traditional linear TV buys
during the Upfronts.
With data-driven linear TV, advanced
advertisers now have the opportunity to
develop national media plans to reach
the highest concentrations of their target
audience. Instead of relying solely on age
and gender, first-, second- and third-party
data can be used to develop a target audi-
ence. By matching this target audience with
viewership data, marketers can identify
new ways to make their media plan more
effective. With more and better data at media
planners’ and buyers’ fingertips, they can
better answer the question, “Which network,
program, or daypart should I buy?”
In the past, an automotive advertiser may
have decided to buy air time during the NFL’s
Monday Night Football in order to reach men
18 to 49. However, with a data-driven linear
plan, they can select media that matches the
brand’s more specific audience most efficient-
ly. For example, by matching viewership data
to their target audience of single males age
25 to 40 who have an income over $75,000
and are likely to be in market for an SUV, the
auto brand will now be able to see where and
when their audience is tuning in. So perhaps
with this insight the advertiser decides to
make a more cost-efficient investment in a
Chicago Fire spot than Monday Night Football,
turning their linear plans into data-driven ones.
What Is Advanced TV? 13
Addressable TV is focused on delivering one-
to-one household-level targeting. Much like
a letter arrives in your mailbox or an email in
your inbox, marketers can target the exact
households that matter to them by using
addressable TV. Unlike linear buying, which
is focused on programs, addressable TV is
focused on the person behind the screen.
Advertisers no longer have to guess what
people are watching, whether it’s American
Idol or American Pickers. With addressable
TV, advertisers can focus on sending the right
message to the right person.
So how does addressable TV work? Today,
multichannel video programming distributors,
or MVPDs, own both the subscriber relation-
ships and the technology-enabled set-top
boxes in the living room. That means they
have both of the addressable audiences that
advertisers seek and the technical ability to
deploy commercials at the household level.
Based on the inventory they are able to
sell, approximately two minutes of each
hour can be made addressable with the
ability to reach nearly 74 million households.13
Advertisers can work with a neutral matching
partner to connect their target audience to
the MVPD’s subscriber universe.
According to the Association of National
Advertisers (ANA) and Forrester, over 15%
of survey respondents regularly include
addressable in their TV plans while
another 35% have experimented with
So what are some of the major
benefits of addressable TV that has so
many advertisers taking the plunge?
Scale is here: leading MVPDs
like Altice, AT&T/DIRECTV,
Comcast, Cox, Dish Network/
Sling, Spectrum (Charter),
and Verizon (Oath) offer both
linear and VOD addressable
capabilities that reach over
half of the country
Data runs the show: first-,
second-, and third- party data
can be used for targeting
TV’s sales impact is
measurable: sales and activity
data can also be linked back
to ad exposure data at the
end of the campaign
Consumers are at the center:
consumers can opt out of
receiving addressable ads
with their service provider
What Is Advanced TV? 14
How do you know you’ve seen an addressable
TV ad? You don’t! Besides the fact that the
message should be relevant to you, there is
nothing about an addressable TV ad that tells
you it’s addressable.
What Is Advanced TV? 15
Streaming Services & Devices
“TV everywhere” is the mantra of the day. Over 55% of U.S. house-
holds subscribe to at least one streaming service, which means
customers are spending over $2 billion each month on their video
Let’s take a look at the companies, services, and devices
that are enabling on-demand content for over 69 million households:
As addressable audiences, available inventory, and ad experiences
continue to improve in the OTT/CTV space, it’s important for adver-
tisers to note this is not simply a trend. It is a true shift in consumer
behavior that provides marketers the opportunity to leverage more
data than ever before.
Over-the-top (OTT) video content is
viewed on internet-connected devices.
This terminology came to be because
the video content no longer has to go
through a traditional cable subscription,
which had been delivered “over the air,”
and instead can bypass the traditional
content distribution route and come in
“over the top.” Think of companies or
services like Hulu, Sling TV, and ESPN+
as OTT content providers.
Connected TV (CTV) is any television
set that can be “connected” to the
internet over IP. When there is also
a media platform already built in (no
extra devices needed), it is considered a
smart TV. Leaders in this space include
companies like Samsung, and smart
TV app companies like Samba TV. There
are also a variety of OTT/connected TV
devices like Apple TV, Roku, and even
game consoles like Playstation and Xbox
that enable easy access to content.
What Is Advanced TV? 16
When you define TV as simply sight, sound, and motion,
you realize that much of the content we as consumers
enjoy today walks a fine line between online video and
traditional TV viewing. For that reason, many advertisers
and solution providers often include digital video as part
of their people-based television plans, especially as over
181 million people16
in the U.S. watch video either via
an app or website. Consider digital video a must in the
advanced TV conversation if you are planning on creating
a true omnichannel strategy.
Measure your campaign’s
link your TV campaign
viewers to their actions
Measuring TV’s Success 17
Measuring TV’s Success
Marketers are no longer flying blind when it
comes to judging the effectiveness of their
TV tactics. In the past, TV media has been
evaluated by marketers by executing
expensive brand lift studies or by asking,
“Did my sales go up when my commercials
aired?” The history of TV measurement
has been less than scientific, and is just
that—history. Advanced TV capabilities
not only include better targeting, but also
In the era of accountability, marketers are
demanding answers to the big questions:
“What is my ROI? Did my TV dollars drive
in-store sales, online purchases, or in-store
traffic?” The key to answering these
questions effectively is identity resolution—
knowing the audience that viewed the media,
and connecting that media experience to
sales and transaction data. Once the audi-
ence is correctly identified, understanding
the ROI of a campaign is just the beginning.
Additional insights can be reviewed to
optimize the media mix, evaluate the
customer journey, identify winning creative
tactics, and more.
With advanced TV campaigns, advertisers
now often have access to viewership and
campaign exposure data. Much like in the
digital world, they can now attribute a variety
of consumer actions to their TV campaign.
Often referred to as “closed-loop” reports,
post-campaign analytics help brands give
TV credit where credit is due.
Set Yourself Up For Success 18
Set Yourself Up
Now that you have a foundation in advanced TV concepts,
it’s time to start cross-channel conversations! New vendors,
providers, datasets, and capabilities are emerging every day,
so don’t be afraid to ask questions. Even long-standing TV
experts are finding their footing in this exciting new world.
And as the lines between digital and TV continue to fade,
expertise will be needed from both sides to build a cohesive
If you are ready to take on some advanced TV tactics, read
the tips on the next page to get started.
Set Yourself Up For Success 19
Let the data guide you
Today, many marketers get excited
about new tools, platforms, technology, or
media offerings. Before you decide exactly
which media tactic will work best for
you—whether it’s an addressable TV or
CTV campaign for example—you should
focus on working with a partner that can
help you match and activate your audience
wherever you have the greatest reach.
It’s all about connecting with people
wherever they are.
Know your audience
Similar to building a digital campaign,
the right audience will be constructed
using high-quality data that identifies key
consumers likely to make a purchase with
your brand by leveraging first-, second-, or
third-party data. One of the easiest ways
to get started is to simply use an audience
you are already targeting for your online,
mobile, email, or direct mail campaigns. Not
only will you be on your way to launching
an advanced TV campaign, but it will also be
Build a team
Advanced TV is not a solo sport. Not only
will it take coordination across internal,
channel-focused teams and agencies, but
it will also require building a network of
partners you trust from data providers,
identity and matching companies, and
media conglomerates. If you are just starting
out, building this team will be your biggest
investment. Once assembled, this team can
test any of the capabilities outlined here on
a campaign-by-campaign basis.
Tips to Get Started with Advanced TV
As you continue your advanced TV
education, follow not only industry
experts, but discover who is responsible
for TV within your company as well.
They are likely also learning what’s
possible, and may have ideas for cross-
over efforts. Think strategically about
taking on projects that expose you to
new tactics and develop those new skills.
As the marketing world changes from
channel-focused to consumer-focused,
it’s marketers with this diverse skill-set
who will deliver the best results for
LiveRamp: IdentityLink For TV Makes People-Based Advertising a Reality 21
IdentityLink For TV
Advertising a Reality
Every day, LiveRamp helps marketers activate
powerful people-based advertising cam-
paigns, and that now includes TV. In a world
of fragmented viewership, understanding
who is behind the screen has never been
more important. That’s where LiveRamp’s
IdentityLink™ for TV comes in: we help the
entire ecosystem solve TV challenges—all
while protecting consumer privacy and
Whether you are simply looking to learn
more, launch your first campaign, or begin
recognizing your audience across screens,
connect with the LiveRamp TV team today
by contacting your account representative or
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About LiveRamp 23
LiveRamp provides the identity platform leveraged
by brands and their partners to deliver innovative
products and exceptional experiences. LiveRamp
IdentityLink connects people, data, and devices
across the digital and physical world, powering the
people-based marketing revolution and allowing
consumers to safely connect with the brands and
products they love.
LiveRamp is headquartered in the technology hub
of San Francisco, delivering privacy-conscious solu-
tions to market and honoring the best practices of
leading associations, including the Digital Advertising
Alliance’s (DAA) ICON and App Choices programs, the
Interactive Advertising Bureau, the Data & Marketing
Association, and the Advertising Research Foundation.
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