Upfront Relevancy and the Importance (Or Not) of Data. The IRTS Newsmakers Panel.

The IRTS is an industry organization of top media executives and also serves as a charity to build future leaders and industry diversity through an educational program initiative. The recent Newsmaker Breakfast not only recognized the thirty students comprising this year’s IRTS fellows program, it also offered a provocative panel of noted agency leaders moderated by Jack Myers, Chairman and Founder of Myersbiznet.

The panel included Lori Hiltz, CEO Global Brands, Havas Media Group, Dave Penski, Chief Investment Officer, Publicis Media, Dani Benowitz, EVP Director of Investment, Magna Global, Rino Scanzoni , Chief Investment Officer, GroupM and Donnie Williams, Chief Digital Officer, Horizon Media. Myers led a lively discussion of the state of the industry from the upfront and newfront to data, automation and disintermediation. 

Upfront 2016

“The upfront has taken some interesting turns this year,” Myers began, “What do you see happening?” Hiltz responded, “The Upfront is the social currency of our industry. It doesn't matter what platform or channel – we are platform agnostic when it comes to investment. But the Upfront becomes the jump start.” Scanzoni countered, “The Upfront marketplace is irrelevant to what the overall market really is. Last year we saw market declines and this year we expect to see low to single digit growth. There is change and disruption but the fundamentals of our business are not changing.” “There is more of a shift from national TV into digital. We have been looking at digital holistically for a while as a way to reach consumers,” Benowitz noted.

The Importance of Data and Closed Loop Initiatives

 Is data a game changer? “We are all talking about data,” Scanzoni said, “But there is nothing new about data. Yes it is more sophisticated and there is more first and third party data. But we’ve used data in TV for many years. We are doing it better – it is more objective and reliable - but there is no nirvana here using data.” But data is being collected and leveraged in new ways. “The closed loop is new,” said Myers. “There are closed loop initiatives from companies like NBCU, Viacom and Turner. Do they have scale and are they sustainable?” Scanzoni responded, “If I were a seller I would do exactly that but as a buyer I do not see the value in closed loops. You have to have a consistent data set to apply to a full TV portfolio. The correlations are different between Kantar and Nielsen, for example. They point you in different directions. You need a consistent dataset and have to find a way to optimize across vendors. Sellers have to work as a group but that is impossible because they have their own self interests. Agencies need to choose data and do their own correlations.”

Automation versus Human Relationships

Programmatic continues to loom large over the industry. Williams noted, “Programmatic has the ability to help decision-making over multiple media touch points, which is great. Investments become more efficient and it is a true value proposition.” But what about the balance between sales automation and the human relationships that are the cornerstone of our business? Penski responded that, “Relationships are important if not more important in the industry now. We have added people to our staff because to buy programmatically now requires even more people. Keeping talent is a big challenge for us. We are still a very human based industry.” Benowitz added, “It is not a matter of traditional versus programmatic. There is room for both. We look at content, engagement and watercooler talk. But the ability to buy auto intenders is certainly where we should be headed. It won't go all one way or the other. It still takes two people talking to hear the passion in their voice. If we lose that we are in a different place.”

Looking Ahead

Between the impact of data and programmatic on creative and consumers, the industry continues to evolve and innovate. Some final words of wisdom were offered by the panel. Benowitz advised, “Don't be afraid. There is a lot going on but there is room to do business.”  Penski added, “There is still a need for humans in our ecosystem. We must continue to work together and find ways to bring competitors together to work together. It is not just about data.”

This article first appeared on www.MediaBizBloggers.com

Next Steps For Addressable Advertising

Addressable Advertising has been an active albeit custom application for media purchasing for several years. There are agencies who have been very strategic in folding in addressable advertising campaigns for certain clients and there are several data oriented companies who have built successful businesses helping advertisers from insurance companies to political candidates more efficiently and successfully target their consumers.

Last week, at BC-Multichannel's Advanced Advertising conference at the Roosevelt Hotel in NYC, a stellar roster of industry experts from data originators to programmers to agencies brought us up to date on not only where addressable advertising is, but also where it is going. The ability to more efficiently harness the values of addressable advertising has moved forward but there are still some necessary next steps that need to be taken before it is a universal component of an advertisers buy. 

According to the various panelists, addressable advertising has the following goals to achieve over the next year:

Measurement

If there was one resounding theme across most of the panels, it was the need for better measurement. Currently cross platform measurement is "in development" with some partial solutions from data and measurement companies. Rentrak's Cathy Hetzel spoke about her company's ability to measure the combination of television, movie attendance, mobile and online as well as adding shopper data and demographics. According to Tara Maitra, TiVo can currently combine TV with online.  And I know that Nielsen has begun to cross- populate its Television meter panel with homes from their Net-Ratings service. As the choice of merge-able datasets expands, let’s try to add platforms missing from the data such as tablets.

Good Creative - Programming and Marketing

Damon Williams of Music Choice said that while the biggest change to addressable advertising is measurement, consistently good creative is important too. Andrea Ching of CNN added that it is important to create great storytelling opportunities where advertisers can tell their story across all screens.

Scalability

Despite the ever increasing repositories of fascinating and valuable datasets, there is still the challenge of scale for the current addressable advertising campaigns. One reason for this is because the current datasets of addressable ready boxes is a percentage of the total footprint. And only on digital cable boxes. And only among those MVPDs who make their STB data and footprint available. Dani Benowitz of Universal McCann would like to see it go beyond cable television but would like to see at least all MVPD data included so as to get closer to scale.

Targetability

A huge proven advantage of addressable advertising is its ability to target consumers with messages that more closely speak to their lifestyles.  But another important component is the ability to tie media exposure to purchasing, according to Andrea Ching.  Jonathan Bokor of MediaVest stated that the full implementation of DAI is also an important addition to improve target ability.

Agency Challenges

Some agencies are still siloed where buying and planning of television is separate from digital etc. More and more though, agencies are breaking down the siloes thus enabling a more efficient business structure to deliver the most efficient and optimized targeted campaign for an advertiser.

In sum, “it is important to stay relevant”, noted Dani Benowitz. With all of the advancements in data and technology, greater measurement competition and expansive offerings from content providers, that might be the easiest goal to achieve.