TV Ad Targeting: Lessons From the Digital World

Advancements made in TV ad targeting are proving to be a boon despite linear viewership erosion. A recent Advanced Advertising Summit highlighted how advanced advertising, precision audience targeting, and cross media measurement are adding to television’s assets and fueling its growth.

Advanced Advertising for TV Full Speed Ahead

According to Summit speaker Irwin Gotlieb, senior advisor to WPP, there are no technical obstacles standing in the way of TV ad targeting. The obstacles lie in business operations that continue to silo television and digital as well as in the measurement that has not kept up with the changing ecosystem. “A significant portion in the decline of TV viewing is poor measurement,” Gotlieb stated, as flawed measurement causes undercounting and less inventory.

But TV has an advantage. Its unparalleled reach, combined with newly available granular data, better targets the consumer through the purchase cycle and moves TV down the purchase funnel.

Learning From Digital’s Mistakes

As with any targeting technology, privacy looms large. In a recent article for AdExchanger, Alison Weissbrot wrote, “As digital marketers enter the TV buying world with sophisticated targeting capabilities, identifying the right balance for personalization in the living room is crucial.” At what point does a message become intrusive? While digital ads target individuals, the advantage for television is that ads target households. Relevant ads for the household protect privacy more so than those targeted to a specific individual.

Ad fatigue, ad irrelevancy, and brand safety are other problems faced by digital. TV ad targeting can avoid these issues with frequency capping and a fair ad rotation to avoid fatigue. Additionally, curated ad campaigns, bolstered by data analytics now available in advanced advertising platforms, ensure ad relevancy and brand safety. Jason DeMarco, vice president of Programmatic and Audience Solutions at A+E Networks, told MediaVillage, “We have identified the ability to increase the frequency of advertisers to have a more well-balanced delivery of ads and creative.” This helps the consumer on the user experience side and avoids saturation on the advertiser side.

Learning From Digital’s Successes

TV is also learning from digital by reaching out to smaller advertisers who might have previously been priced out of that marketplace. A recent example, reported MediaVillage, is A+E Network’s Precision1. According to Peter Olsen, executive vice president of Ad Sales and Content Partnerships, it “gives access to people who aren’t traditionally big spenders in TV.”

Some companies are also advancing the connection between digital and TV through initiatives such as CFlight. According to conference speaker Mike Mayer, executive vice president of Sales Solutions at NBCUniversal, CFlight “combines linear with digital impressions and sells deals with total impressions.” Consortiums like Vizio’s Project OAR, which stands for Open Addressable Ready, is another industry initiative.

Currently, addressable advertising for TV is two minutes local time per hour. But nothing will be ready on a national level until the measurement systems can handle it without any manual effort by the back office. However, the lessons drawn from digital will enable TV to more successfully and quickly move into this new advertising paradigm.

This article first appeared in Videa blog.

The Update on Advanced Advertising

They say that the more things change the more they stay the same. The recent Advanced Advertising Summit this past week was notable in that the issues facing the industry seem to remain the same year after year. 

But the good news is that the technology is advancing to a point where the ability to seamlessly integrate digital and linear is ever closer to launch. Another positive change, for me, is the presence of more and more research and data executives in attendance at these types of conferences. When I first attended these events, there were few of my research compatriots there. Now we are even on sales panels!

Challenges in Advanced Advertising

Irwin Gottlieb, Senior Advisor WPP, in his keynote, explained that while advanced advertising has been around for years, it is not scalable yet. It is “somewhat scalable today,” he averred, “there are two minutes an hour (available) in local but it is not scalable in terms of support systems or inventory.” On the bright side, according to Gottlieb, there are no technology obstacles because companies such as WPP made deep investments in tech years ago. But there continues to be business obstacles where short term thinking, intra company fiefdoms and local vs national interests have enabled digital to “eat TV’s lunch.”

Scaling from a test to a full buy is another aspect of scalability that brings pain to the industry. Dan Riess, Executive Vice President of Ignite, WarnerMedia, noted, “We can always get clients to start a test but have find ways to scale that will trigger the technology to make it happen.” As a stopgap, he starts manually “to see how it works,” but there are, “so many different datasets, for example, that make it hard to scale.” Ultimately, we “need to move faster.”

Legacy systems are another challenge. Mike Mayer, Executive Vice President Sales Solutions, NBCU, explained that they are taking a “one order one report approach,” but if the order trail takes them from a legacy to legacy system, the buy has to be put together later. “It’s complicated,” he admitted, and it “can’t change overnight.”

Add to this the issue of silos. “Walled gardens make it difficult to develop business,” stated Jennifer Koester, Director of Telco and Distribution Partnership, Google. The solution is, “more standard segments,” noted Maureen Bosetti, Chief Investment Officer, Initiative, who added, “how it is being measured, more standardization and a privacy standard on identification,” with full compliance.

Positives in Advanced Advertising

But it’s not all doom and gloom. Many aspects of advanced advertising are hugely successful, offering manifold opportunities for both digital and television. Although linear TV is declining in usage, TV as a whole is adapting well to this multi-platform, advanced advertising ecosystem. Jason Brown, Senior Vice President, Head of Ad Sales partnerships, Xandr Media, finds that granular data enables us to “reach micro segments,” where the result is that “many advertisers are moving up the funnel,” and “TV is now full funnel for purchases, depending on the category.” This has resulted in “price hikes well beyond inflation.”

If there is one thing that TV does well, it is storytelling. Paul Alfieri, Chief Marketing Officer, Cadent, explained. Within the realm of advanced advertising, “a marketer can tell their story to consumers where they are and when they want. Is it seamless and we close the loop.” TV, according to Alfieri is learning from digital. “The industry has simplified it into one funnel and advertising is getting more sophisticated. It’s happening quickly because of paradigms you have in digital,” he stated.

No one is complacent. Many companies are creating their own systems that address advanced advertising like NBCU’s CFlight which, according to Mayer, “combines linear with digital impressions and sells deal with total impressions.” Others are joining consortiums like Vizio’s Project OAR, which stands for Open Addressable Ready. Project OAR includes Disney’s Media Networks, Turner, Xandr, Comcast’s FreeWheel and NBC Universal, CBS, Discovery, Hearst Television, AMC Networks and Inscape with the goal to define technical standards for linear and on-demand formats on smart TVs.

Jonathan Steuer, Chief Research Officer, Omnicom Media Group, recommended, a “focused on education on both the strategy and investment side.” He sees a big shift from linear TV to a more expansive view of TV in the digital space where we, “can use same strategic targets.”

Conclusion

So, yes, there are still vexing challenges in getting advanced advertising to scale, especially in national inventory, and we still need to agree on standards for measurement, segments and protocols. But the industry is hyper-focused on these addressing issues, often working together and always committed to progress.  That might be the greatest positive of them all.

This article first appeared in www.MediaVillage.com