There is a
lot of activity brewing in the advanced advertising sector and the recent Multichannel
Advanced Advertising conference in NYC brought many of us up to date. The
conclusion of the conference was, as we prepare for the upfront TV season, advanced
advertising will not only be a bigger player, it may even shift dollars. And,
according to most of the panels, when we say Advanced Advertising we are also
saying TV Programmatic in the same breath.
Granted, most of us think of advanced advertising as local
time now but it is fast moving into national applications. Fox recently
announced the appointment of Joe Marchese to President-advanced advertising
products, a new position overseeing all non-linear TV advertising products and
services inside Fox. According to Louis
Hillelson, Group Publisher B&C / Multichannel News, “It is only March 2015
and we have already seen movement in this space.”
Unifying content offerings and getting credit for all of the
audience delivered is the Holy Grail. This requires accurate cross platform
metrics, the ability to steward all of the different units and an effective and
automated platform to drive the sales process from proposal to completion.
Automation
Even in this
technological age, there are still a number of inefficient manual processes in
the television buying and selling process. There is a great hunger among many
of the buyers and sellers to automate and streamline processes. Todd Gorden,
EVP Magna Global , explained, “Traditional television still has manual
processes - Faxes, retyping of plans. We want to automate. Free up more time
for conversations that help each business. (TV Programmatic) offers quality
data to define target, a tech platform to facilitate business and inventory
that can take advantage to where technology takes us.”
Measurement
It all comes
down to measurement and the ability to match disparate datasets accurately to
gain insight into true consumer behaviors. “Measurement is a key component,” according to
Comcast Executive Director, Dan Carella. Chris Monteferrante, VP AT&T, explained
how his company handles measurement. “We retrieve second by second data from
every set top box and developed an algorithm that takes all STB data, culls it
down and produces an optimized media plan. The science solid, the research is
solid and the output is solid.” Dan Sinagoga, VP Comcast Spotlight concurred,
“It is all about the data - household level data against your key segments.”
With the ability to match to segments, we are seeing “real
insights into the customer” according to EVP Cadreen, Erica Schmidt, “and the best
available source of media usage behavior to match it to.“ But we have a way to
go. James Rooke GM Freewheel admited that there is “undervalued inventory
because of measurement challenges out there.”
Stewardship
Ultimately,
it is the need for seamless de’siloing systems that make the entire buy sell
process fully trackable. Monteferrante
noted that, “Systems will bring it all together. What are the standards of that
system? How can we tie it all together?”
Some agencies have successfully established a planning protocol. Mike
Bologna, President MODI Media, sees advanced advertising commanding 20-30% of a
budget at this time. He said, “Hyper segments defined for advertisers can
determine how TV content indexes against segments. (We) can do a beautifully
balanced TV plan for an advertiser, down to the individual household. We take
advantage of all the data and technology and balance between core and future
customers.”
The Future?
Though there
is a lot of talk about Programmatic TV in the upcoming upfront, this does not
portend the end of traditional TV. In fact the two processes can go hand in
hand. Gorden explains, “Comparing traditional TV to Programmatic TV is apples
to oranges. Traditional TV is a more effective way to get up reach curve. But
then it levels out. Then a dollar spent via programmatic can deliver more
incremental reach.”
There are
many national networks starting to explore the potential, and build out their
Programmatic TV strategy. Attendee Hanna Gryncwajg, SVP Sales for RLTV, sees an
opportunity, “I see programmatic (automated) selling as a benefit for all
national networks. Long tail cable
networks have rich audience compositions and will likely find a CPM benefit
from their current undervalued impressions.
Under appreciated audiences such as Boomers (Adults 50+) will be welcome
when data shows they are the ones buying certain products and services.”
This article first appeared in www.MeediaBizBloggers.com
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