Digiday’s Future of TV Summit in Palm Springs saw a gathering of expert marketers ready to delve deep into the evolving TV advertising landscape. It’s clear that the industry is still a long way from having mastered the measurement and optimization capabilities of Connected TV, and some think 2019 won’t be the year. Within digital advertising, methods of accurate measurement have long been the topic of conversation but, given that Nielsen TV ratings dominated as TV’s main form of measurement before the advent of connected platforms, this is relatively new and uncharted territory for brands. With cable and broadcast ratings failing to capture a full picture of audience personas, and opportunities across Connected TV and OTT partners still in need of further exploration, it requires commitment across the industry for addressable TV formats to go mainstream. NASCAR’s VP of Marketing, Peter Jung, spoke at the conference admitting the brand had not truly utilized paid OTT and Connected TV advertising opportunities up until very recently, relying instead on promotion through partner networks to draw and understand their audience.
Rather than relying solely on Nielsen and third-party measurement data, brands should look to agencies with in-house OTT/CTV capabilities that can segment and target customers outside of the traditional paths of day, daypart, age, and demographic. With 65 million addressable households in the US and 89 million CTV HHs, there is ample opportunity for brands to move beyond the :15 and :30 spot to engage audiences at scale. By utilizing these households and leveraging the significant amount of 1st and 3rd party data available, brands can seize the opportunity to drive competitive advantage.
Performance marketing through smart/connected televisions is possible. These products connect to user IDs, share knowledge across screens, and are able to provide crucial data about their users. Brands need to remain committed to offering the right user the right message at the right time which now includes engaging with users as they watch their favorite shows, be it during a commercial break or interactively throughout the program. Due to the rise of ACR (Automatic Content Recognition) it is possible to gather insights on what audiences are actively viewing and target them accordingly, whether that is by displaying new content or shows that are likely to suit their data profiles.
Rather than relying on large investments from a few advertisers, OTT content providers, can benefit, as Facebook did, from small investments from myriad advertisers such as Tough Mudder, Vita Coco, Canada Learning Code, and more.
Here are a few takeaways to inform a strong TV performance marketing strategy:
- The enhanced and increased targeting capabilities of OTT/CTV will open up additional revenue streams for brands but in order for TV addressability to go mainstream, the industry needs to commit to tracking and measuring connected TV formats in a common currency, in line with all devices and digital channels.
- Integrated buying teams are critical for brands to generate sustainable success or work with trusted agency partners who have resource and expertise to drive effectiveness. Speed to market, sharing of information, and an understanding of how measurable advertising channels all impact one another is crucial to future success.
- Programmatic buying offers a way for advertisers to combat data fragmentation.
- , resulting in significant opportunity for brands across the industry.