As advertisers, CMOs have become accustomed to measurable, trackable, and addressable digital marketing. The digital medium has standardised the ability to reach an individual customer across channels and then holistically measure the cross-channel effectiveness. Whether an advertiser uses Facebook custom audiences, Google’s customer match, email or something else, every dollar and cent can be attributed, measured, and optimized — down to the person level. Questions of channel value, campaign success, and customer value can be answered in a relatively short amount of time.
It is only logical that a CMO would want the same measurability with TV advertising. They have begun to challenge, push, and demand more data-driven opportunities by shifting more and more of their ad dollars into more measureable tactics.
Networks heard the cry of the disgruntled CMO and responded by proving the value of a premium ad with data-driven opportunities, and now, networks are beginning to see return on ad spend. The last couple of up-fronts have touted content and data, and this method seems to be paying off.
The irony in all of this is that the buy side of networks, having seen the data-driven value that their advertisers receive, are also becoming bigger buyers of targeted and addressable media to increase the effectiveness of their own tune-in campaigns.
Networks are beginning to build out their databases in order to set the foundations for audience-centric marketing strategies. ‘Audience’ is the key word here, as many networks are using this term for the first time.
Networks are not like a bank or retailer who typically owns the point of sale. These other industries can view their customer’s journey from exposure to transaction. A network’s transaction happens when content is viewed, and then the associated data is stored in the set-top-box (STB), which is not typically owned by the network. Accessing this information can be a difficult and disjointed process. The industry is in the early days of creating solutions to these closed-loop marketing challenges that networks are faced with.
However, a cultural shift is taking place. Networks are beginning to navigate the difficult obstacles of measurement and optimization. Advertisers are seeing more and more opportunities to reach their audience and measure their effectiveness in both digital and linear video. The benefit for advertisers is a decrease in wasted marketing dollars and an increase in ROI — the benefit for viewers is more relevant advertising. After all, 71 percent of consumers say they prefer personalized ads1. By taking this new marketing approach, networks are not only proving the value of television advertising, but they are able to get a holistic view of their own audience and create their own scalable addressable strategy. If you are a network looking to pivot to a direct-response approach and build relationships with your consumers, the best place to start is by reading ‘7 Strategies for Driving TV Tune-in.’, an essential resource for networks marketing in the golden age of television.
1 Adlucent data, 1000 USA Respondents
Andrew Hoeberichts, General Manager, Senior Vice President, Media & Entertainment Practice, Merkle.