Not long ago, companies had little control over who saw their television advertisements.
The best strategies they could muster was purchasing space during select programs with the hopes of hitting a high enough percentage of target viewers.
It was a bit of a gamble, yes. But it was also the only game in town.
Now, everything has changed with advanced TV options and opportunities.
Even Nielsen, which has historically held strong to traditional outlets, understands the importance of advanced TV, and are finally including Hulu and YouTube viewership in its ratings mix.
Targeted TV Advertising Strategies
In the era of big data, advertisers can drill down thanks to high-indexed linear buys, over-the-top (OTT) and connected TV (CTV) choices, and addressable TV.
But each facet of these advanced TV advertising strategies has its nuances.
High-indexed linear buys apply more data to the current Neilson demographics.
The increased data allows advertisers to positively identify stations, markets, programs, and dayparts to hyper-target desired viewers.
OTT and CTV recognize the need to reach viewers who have “cut the cord.”
These viewers are using streaming devices such as Roku or content providers such as Hulu and Sling.
Addressable TV is Exploding
Addressable TV allows brands to target households.
For example, a company could match its customer relationship management (CRM) software with available DIRECTV or DISH set-top box data.
Its ads would then be delivered directly to the set-top box of only those who match the profile of the desired candidates, making this a “no waste” pitch.
The cost per impression (CPM) is higher, but the ad is guaranteed to air when the company’s chosen household is watching.
By 2019, addressable ad spending is expected to top $3 billion—more than double the 2017 spending of $1.26 billion.
Understanding the Breakdown of Advanced TV Advertising Expenses
When first exposed to advanced TV advertising, businesses accustomed to a more scattershot approach may balk at the idea of paying a higher CPM for their buys.
However, what they are purchasing involves far less waste thanks to better, smarter data.
With data and technology comes the ability to hyper-target the desired customer.
Viewers are served ads when and where they are most likely to see them, regardless of what they are watching at the time.
So, whether your target audience is watching ESPN at 9 p.m. or NBC at 2 p.m., it will be served your ad.
Rather than sell to the masses, brands pay only for impressions served to the most qualified leads.
The guesswork of selecting the perfect program and dayparts is gone.
The data will lead to the right households.
All viewers need to do is turn on the TV to see an ad specifically selected for their unique lifestyle.
Now, you might be wondering whether the data and extra fees are worth it.
The answer depends on your specific business.
If you are advertising a product or service with mass appeal that could survive in a broad audience environment, such as the Snuggie, the answer might be “no.”
Anyone can be on the market for a Snuggie, regardless of age, race, gender, or location.
However, the answer might be “yes” if you have a more specialized product or service, such as custom kitchen cabinetry.
Because your target audience might only include homeowners in the market to remodel, you might need to use data to sniff out targets.
Maximizing Advanced TV Advertising Strategies
Any company can take advantage of advanced TV advertising, and more brands will need to consider it as fragmentation continues to grow.
Still, to make the most of the experience, companies must work with their media planners or buyers to ensure everything is in place for the best possible ROI.
Here is how to start:
- Be sure the data is squeaky-clean.First-party data is meaningless if it is not in the proper form. Like crude oil, you must refine data before it can be useful. Help yourself by having a solid, trustworthy data management platform in place to build out audience segments via precise, analyzable criteria.
- Work with knowledgeable advanced TV partners.Don’t let anyone learn on your dime. Experience is key in all industries, including the advanced TV marketplace. Develop partnerships with people who understand the nuances of cutting-edge TV advertising technologies.
- Ensure you are not facing hidden costs.Third-party data can be costly. Never let providers hide that cost in the quoted CPM. Instead, ask questions to understand the true data costs based on your chosen targeting level. Expect to pay more for targeting, but at the same time, don’t be afraid to ask tough questions regarding costs.
All signs point to major changes in advertising and marketing via television portals.
Thanks to Data
The world can thank data for the evolution—once a marketer sees data, he or she will always want more.
Video suppliers realize this and are sharing deeper viewership insights every year.
The transition to advanced TV advertising strategies will not happen overnight, but it will happen.
Why waste time and finances on campaigns created around broad age and gender buckets that produce fewer returns each quarter?
Data equates to power.
And brands ready to harness the benefits of emerging TV marketing tactics will be the first to enjoy the fruits of their advertising dollars.