Mar 28, 2019

Just in Time for the Upfront, A+E Guarantees Audience Based Advertising


The folks at A+E Networks understand the value of a careful process. Now, as they announce the launch of their Audience Based Advertising Solutions for both Digital and Linear platforms, all of the critical elements that have taken years to achieve, are now in place. “Seven years ago we started the digital iteration of precision,” noted Peter Olsen, Executive Vice President, Ad Sales and Content Partnerships, “three years ago we added the linear focus. And last year we launched the attribution-based performance system.”

Although the digital and linear marketplaces are very different, the complex integration of data, the streamlining of processes and the ability to customize and then guarantee results places this initiative in a new, higher class of offerings and just in time for the upfront.

Addressing Marketplace Frustrations
Why do all of this? Olsen explained that there are two big frustrations for advertisers. One is the price of entry into the digital and, even more, in linear marketplaces where it is perceived as cost prohibitive. “That is why we launched a new product called Precision One or P1 which is a single network optimization tool intended for clients that want to test in this space or people who aren’t currently big spenders in TV,” he stated.   In this way, smaller clients could participate in television where now, as in digital, they could get rich data and advanced targeting opportunities “as a way to welcome new people in.”

The other frustration, Olsen posited, is the general inability to do cross-platform or multi-platform strategic target optimization. “There is the lack of common currency as well as other measurement issues out there, but we are willing to take a leap and say ‘you give us your target and we will buy the audience wherever it may be.’ Essentially, we need to be able to optimize any target audience wherever they are watching.” 

“These are the new initiatives,” stated Jason DeMarco, Vice President, Programmatic and Audience Solutions, “but the underlying foundation remains, which is to find a solution that is beneficial to all parties involved. We are focused on optimizing the user experience with relevant targeted ads and keeping intact the premium experience of our content.”

Premium Programmatic
How does the team at A+E overcome the nagging but incorrect perception of programmatic as remnant inventory? “I have been fighting that fight for a good seven years,” admitted Olsen. “Programmatic started as a race to the bottom because basically it was a way to sell off distressed inventory.” But the reality is, he added, “No inventory, whether on TV or in digital should be considered distressed when you are applying data sources to it. Each and every impression will be relevant and valuable to someone.”

When it comes to the premium viewing experience, the relevant ads within that experience will have greater resonance as well as brand safety. In addition, there is a wider rotation of ads so viewers will not see the same ads over and over again. “We have identified the ability to increase the frequency of advertisers to have a more well-balanced delivery of ads and creative which helps the consumer on the user experience side,” Olsen noted. On the advertiser side, this method avoids saturation so that, “the premium is maintaining that TV-like environment across all platforms and screens.”

Technology Partnerships
A+E Networks has also partnered with several technology firms to replicate the TV experience on digital platforms. Ethan Heftman, Senior Vice President, Precision and Performance Advertising Sales, explained that, “The SVOD services are taking viewership and therefore impressions away from the ad-supported video market. Where do we turn? Do we go to unsafe, hard to measure spaces that get gets brands really nervous but help on the efficiency? Or do we find ways to explore places in the premium market?” To that end, A+E Networks is placing more of their premium content on Hulu, Roku and Pluto. In this way they can keep the ecosystem “healthy and also retain clients who understand that video works while also making it affordable.”

The ability to blend of all of the different datasets from both the household and individual level is another selling point to this initiative. “This is where we find the best in class partnerships,” noted DeMarco, like LiveRamp, DataPlusMath and iSpot for data, ad serving and tech stack partnerships such as FreeWheel as well as trade desks on the buy side like dataxu. There are a lot of test cases using ingested client data, matching it with viewership data and delivering against targeted audiences with results expected in the next several months. For the upfront, there is the promise that all of these datasets will enable cross-platform measurement and deliverability for advertisers.

“A+E offers the premium content and distribution to deliver audiences. We are partnering with the best in class technology and data to bring together all aspects of cross-platform viewership synchronized, collaborative way,” concluded Olsen, who backs up his beliefs by guaranteeing the buy results.

Next Steps
While the full holistic integration of digital and linear is possible, it is not simple. Heftman summed it up, “We think that the only way to compete and not overpromise and under-deliver, is to have a product that, from a cost perspective, reduces the barriers to entry for new advertisers and move from digital and into a linear television world with reduced complexity.”

The response from advertisers has been encouraging. “We were the first in market with outcome guarantees which created initial demand,” Heftman added. Now bring on the upfront! 

This article first appeared in www.MediaVillage.com

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