TV Year in Review: Todd Gordon, General Manager of Programmatic TV, TubeMogul
2015 proved to advertisers that it was possible to apply the principles of automation and data-driven audience targeting to television. 2016 will see these principles embraced at scale.
Why? Because the traditional approach to TV doesn’t work as well as it used to. A typical buy achieving 200 gross rating points (GRPs) reaches 25% fewer people today than it would 20 years ago. In fact, the top 20% of TV viewers receive over anywhere from 60-80% of all TV ad impressions – so advertisers aren’t actually improving their reach. Rather, they are bombarding the same audience over and over again.
Fragmentation of TV audiences and the dominance of the heavy TV viewer have made TV advertising much more difficult than it has ever been before. The old ways of working - limited data, no meaningful automation and little connection between planning tools and buying tools – no longer work in this new environment. Today a smart marketer needs software’s help to navigate through these complexities.
The data and technology now exist to deduplicate reach across television and digital devices. In other words, marketers can identify individuals who did not see a television ad and then specifically design a strategy to reach that target audience elsewhere – both by using linear TV more strategically and by targeting lighter TV viewers through alternative TV delivery systems like CTV/OTT, addressable TV and VOD.
Make no mistake though: consumers – even those that don’t fall into the heavy TV-viewing category - are still watching linear TV. But marketers have to work harder to break through the typical TV packaging and selling conventions to target them effectively. Progressive media partners across the TV landscape embraced this in 2015 and are finding new ways to monetize their audiences and inventory.
Alternative formats like VOD and Connected TV (CTV) represent an effective solution to reach this increasingly fragmented audience in a quality, brand-safe environment absent traditional issues associated with digital advertising like viewability or suspicious traffic. Companies like Nielsen and Roku have already begun to work on creating an apples-to-apples measurement standard to compare CTV on the same basis as traditional TV and digital media.
In addition to these new innovative ways to find and reach new consumers, the data available to marketers to apply to TV targeting will become markedly more robust. 2016 will bring a deluge of data that will make TV smarter, more targeted, more accountable and more powerful -- and will require tremendous innovation to navigate.
Software has the potential to make TV advertising better for everyone involved. It provides greater relevance to viewers, greater return for marketers and greater yield for media owners. 2016 will the year that promise becomes a reality – it’s going to be a fun ride.