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Sorry, Internet, TV Ads Are Wildly Underpriced
About Simulmedia Targeted ad network for linear TV Leverages set-top-box, sales data and econometrics Initial focus on entertainment vertical Investors: Avalon Ventures, Union Square Ventures & Time Warner (TWX) DATA NATIONAL  FOOTPRINT Enabling national ad campaigns of: & other providers 30MM-100MM HHs 15MM+ STBs 30MM viewersProjectable to all US Households 2
TV Audiences Not Leaving for Web 3 ,[object Object]
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?,[object Object],[object Object]
Finding Target Audiences Like the Web Receptive– Belonging to audience segments with higher tune-in propensity and duration Available – Observed to tune-in to television on that day and timeslot Committed - Tuned in to competing  programs consistently on that day and timeslot (and removed from the target) Target– Available, Receptive, & Uncommitted Viewers Receptive Target Committed  to Competing Programs Available 6
7 Measuring Ad Receptivity Like the Web Core Audiences Less Likely to Tune Away from Relevant Ad DateNighters were 35% more receptive to television ads for Eat Pray Love than ActionHeroes
8 Optimizing Frequency Distribution Like the Web
Measuring Conversion by Segment Like the Web 9
10 Measuring Sales Results Like the Web Correlation of TV advertising to ticket sales (all audience):  r = .91

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IGNITION: Simulmedia presentation by Dave Morgan

  • 1. Sorry, Internet, TV Ads Are Wildly Underpriced
  • 2. About Simulmedia Targeted ad network for linear TV Leverages set-top-box, sales data and econometrics Initial focus on entertainment vertical Investors: Avalon Ventures, Union Square Ventures & Time Warner (TWX) DATA NATIONAL FOOTPRINT Enabling national ad campaigns of: & other providers 30MM-100MM HHs 15MM+ STBs 30MM viewersProjectable to all US Households 2
  • 3.
  • 4. Live TV is growing faster than the Web video
  • 5. But … 40% of TV spots generates less than 2% of ad revenue for most TV companies
  • 7.
  • 8. Finding Target Audiences Like the Web Receptive– Belonging to audience segments with higher tune-in propensity and duration Available – Observed to tune-in to television on that day and timeslot Committed - Tuned in to competing programs consistently on that day and timeslot (and removed from the target) Target– Available, Receptive, & Uncommitted Viewers Receptive Target Committed to Competing Programs Available 6
  • 9. 7 Measuring Ad Receptivity Like the Web Core Audiences Less Likely to Tune Away from Relevant Ad DateNighters were 35% more receptive to television ads for Eat Pray Love than ActionHeroes
  • 10. 8 Optimizing Frequency Distribution Like the Web
  • 11. Measuring Conversion by Segment Like the Web 9
  • 12. 10 Measuring Sales Results Like the Web Correlation of TV advertising to ticket sales (all audience): r = .91
  • 13. 11 Optimizing to High ROI Audiences Like the Web Correlation of TV advertising to ticket sales (ActionHeroes): r = .95
  • 14. Results: Data Targeting Significantly Beats Sex/Age planning/pricing by +75% … and TV industry is just getting started 12 96% Lift 82% Lift 25% Lift Program 1 Program 2 Program 3 70% Lift Program 7 83% Lift 15% Lift 105% Lift Program 5 Program 4 Program 6