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The Future of People-Based TV Advertising Is Here

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Advanced TV: The Future of People-Based TV Advertising Is Here

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The Future of People-Based TV Advertising Is Here

  1. 1. Advanced TV: The Future of People-Based TV Advertising Is Here
  2. 2. 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 20 Conclusion 21 LiveRamp: IdentityLink For TV Makes People-Based Advertising a Reality 22 Endnotes 23 About LiveRamp 1936 1949 1958
  3. 3. TV As We Know It Is Changing 3 TV As We Know It Is Changing 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. 1962 1973 1998
  4. 4. 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 CAPABILITIES CRM Data for Targeting Partner Data for Targeting Data Providers for Targeting Personalized Creative Cross-Device Media Targeting Identity Resolution Closed-Loop Measurement 2018 DIGITALADVANCED TV
  5. 5. TV Advertising’s Roots Run Deep 5 TV Advertising’s 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. .
  6. 6. 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 “must-see” content. What are the Newfronts?
  7. 7. The Power Of TV As An Advertising Medium 7 The Power Of TV As An Advertising Medium 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   Movement Perception4 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. Emotional Contagion5 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 perfectly safe. Identification6 If a “character” is portrayed as someone we feel similar to, we feel more invested in the story. The same applies in advertising.
  8. 8. 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 consumer behavior. People are viewing more content than ever before—as much as a full-time job, according to Deloitte’s 2018 Digital Media Trends Survey7 . But they are watching it across screens. 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 today’s landscape.” 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  .
  9. 9. 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 3 years,9 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. Cord Shavers This audience toggles between streaming services and a reduced TV subscription package, but have yet to fully “cut the cord.” Cord Cutters 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. Cord Nevers A typically younger audience who has never paid for a traditional TV cable subscription.
  10. 10. 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.
  11. 11. 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.
  12. 12. What Is Advanced TV? 12 Data-Driven Linear 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.
  13. 13. What Is Advanced TV? 13 Addressable TV 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 it.14 So what are some of the major benefits of addressable TV that has so many advertisers taking the plunge?
  14. 14. 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.
  15. 15. 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 content.15 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.
  16. 16. What Is Advanced TV? 16 Digital Video 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.
  17. 17. In-Store Sales Online Sales & Traffic Store Visits Customer Service Contact Measure your campaign’s effectiveness and 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 better measurement. 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.
  18. 18. Set Yourself Up For Success 18 Set Yourself Up For Success 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 consumer-focused strategy. If you are ready to take on some advanced TV tactics, read the tips on the next page to get started.
  19. 19. 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 truly cross-channel. 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
  20. 20. Conclusion 20 Conclusion 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 their companies.
  21. 21. LiveRamp: IdentityLink For TV Makes People-Based Advertising a Reality 21 LiveRamp: IdentityLink For TV Makes People-Based 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 audience data. 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 emailing tv-delivery@liveramp.com.
  22. 22. Endnotes Endnotes 22 Page 3 1)  Ryot Studio Branded Video Thought Leadership Study.2 26.” https://b2b.oath.com/c/ryot-studio- branded--1?x=wQx6Qf. Accessed 4 Apr. 2018. 2)  “2017 was the year digital ad spending finally beat TV – Recode.” 4 Dec. 2017, https://www.recode. net/2017/12/4/16733460/2017-digital-ad-spend- advertising-beat-tv. Accessed 4 Apr. 2018. Page 7 3)  Must Feel TV | Psychology Today.” 23 Sep. 2015, https://www.psychologytoday.com/us/blog/how- fantasy-becomes-reality/201509/must-feel-tv. Accessed 4 Apr. 2018. 4)  “Movement perception | process | Britannica.com.” https://www.britannica.com/science/movement- perception. Accessed 4 Apr. 2018. 5)  “Faster than a Speeding Text: “Emotional Contagion” At Work ....” 15 Oct. 2014, https://www.psychologytoday. com/us/blog/the-science-work/201410/faster- speeding-text-emotional-contagion-work. Accessed 4 Apr. 2018. 6)  “What happens to your brain when you binge- watch a TV series.” 4 Nov. 2017, https://www.nbcnews. com/better/health/what-happens-your-brain-when- you-binge-watch-tv-series-ncna816991. Accessed 4 Apr. 2018. Page 8 7)  “Digital media trends survey – Deloitte.” 19 Mar. 2018, https://www2.deloitte.com/insights/ us/en/industry/technology/digital-media-trends- consumption-habits-survey.html. Accessed 4 Apr. 2018. 8)  “US Consumers Spend $2 Billion Monthly on Streaming Video ... – Variety.” 20 Mar. 2018, http:// variety.com/2018/digital/news/deloitte-streaming- survey-consumers-2-billion-monthly-svod- services-1202730159/. Accessed 4 Apr. 2018. Page 9 9)  Data-Driven Advertising is Key to TV’s Survival, Part 2 | Adobe Blog.” 27 Nov. 2017, https://theblog.adobe. com/data-driven-advertising-key-tvs-survival-part-2/. Accessed 4 Apr. 2018. 10)  “A Guide to Advanced TV Targeting – IAB.” 20 Feb. 2018, https://www.iab.com/news/advanced-tv- targeting-guide. Accessed 4 Apr. 2018. 11)  “US TV Ad Spending to Fall in 2018 – eMarketer.” https://www.emarketer.com/content/us-tv-ad- spending-to-fall-in-2018. Accessed April 4, 2018. Page 12 12)  “The Changing TV Experience – IAB.” https://www. iab.com/wp-content/uploads/2017/05/The-Changing- TV-Experience-2017.pdf. Accessed 4 Apr. 2018. Page 13 13)  eMarketer Releases New Addressable TV Ad Spending Estimates.” https://www.emarketer.com/ Article/eMarketer-Releases-New-Addressable-TV-Ad- Spending-Estimates/1016153. Accessed May 25, 2018. 14)  “The Inflection Point for Addressable and Advanced TV Is Here Now....” 1 Mar. 2018, https:// go.forrester.com/blogs/the-inflection-point-for- addressable-and-advanced-tv-is-here-now-really/. Accessed 4 Apr. 2018. Page 15 15)  “US Consumers Spend $2 Billion Monthly on Streaming Video... – Variety.” 20 Mar. 2018, http:// variety.com/2018/digital/news/deloitte-streaming- survey-consumers-2-billion-monthly-svod- services-1202730159/. Accessed 4 Apr. 2018. Page 16 16)  “Seven in 10 US Internet Users Watch OTT Video – eMarketer.” 5 Oct. 2015, https://www. emarketer.com/Article/Seven-10-US-Internet-Users- Watch-OTT-Video/1013061. Accessed 4 Apr. 2018.
  23. 23. 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. Visit our website to learn more: www.liveramp.com About LiveRamp

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