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GroupM global chair: ‘Australian media budgets have gone too far digital’

February 26, 2018/in Blog /by Loria

(ADNEWS) – Australian marketers have “gone too far” in shifting media budgets into digital channels and it’s addressable advertising that will allow television to compete for ad dollars in the lower parts of the marketing funnel.

That’s the verdict of GroupM’s global chairman Irwin Gotlieb, who delivered his views on media planning, targeting and addressable TV advertising at the Future of TV conference last week.

Chief among his concerns is that he believes marketers have become too concerned by “picking the low hanging fruit” rather than “watering the roots of the tree”, and this is having a negative impact on the pulling power of brands, illustrated by apathy towards brands from millennials.

“Australia has an issue in that allocation against digital has gone further than it should. We know that the per capita expense of digital media in Australia is probably the highest in the world,” Gotlieb says.

“When you look at the percentage spent on television it is one of the lowest in the world when you consider markets that have fully developed television industries.

“The decline of television’s share of ad expenditure in this market has been more severe than most. It probably warrants a good careful look and a thorough understanding, not just in terms of ad expenditure, but in terms of the percentage of impressions delivered from digital media compared to TV.”

mcn_event-gotliebv2.jpg

GroupM global chair Irwin Gotlieb and Videonet editor in chief John Moulding talk TV. 
 
A revaluation needed

Gotlieb points out that in the US there is a minor rebalancing occurring, which has also occurred in the UK and other leading media markets.

“A correction of some sort is probably in order [in Australia], certainly an evaluation is in order and TV addressability is one very, very effective path to getting better value for client’s money,” he adds.

Gotlieb, leader of the world’s largest media investment group, says it is time for the media and marketing industry to rethink its gravitation towards digital media and targeting.

“I think we have too much focus on targeting. When a client puts a gun to our head and says we need to generate savings, the easiest way to deliver those savings is to develop a more refined and narrower market,” he says.

“But you sow the seeds of your own destruction. One of the reasons we have this issue with millennials and branding is that we moved too heavily into digital in a too targeted a fashion and have forgotten some of the fundamentals of marketing.”

‘A standing ice cube’

The GroupM chief believes that television has become “a bit of a standing ice cube” considering its business potential.

“Managing decline is not a position that television should be in,” Gotlieb says. “Part of the problem is there is an affinity in marketing circles to exploit targeting opportunities and it is a way to save money.

“Television has been put into this little box called ‘top of the funnel awareness’ and has never been able to exploit the money that is directed at every other level of the marketing funnel.”

Gotlieb says that there are no longer reasons why TV should be excluded from lower parts of the marketing funnel because there is the data and technology to support granular targeting of TV inventory based on factors like consideration, preference and where in the purchase cycle a consumer is.

“Technology for addressability has been around for a number of years and, quite frankly it is not being exploited. So shame on all of us,” he says.

Although addressable TV can only be delivered to households rather than individuals, Gotlieb says targeting can become more granular on a “probabilistical” basis when you consider the type of content being watched, for example a children’s cartoon versus live sports versus a dating reality TV format.

“What wouldn’t you do with this capability? Television has always been our most effective means of communication,” he adds.

“It has a reliable supply chain, there are few known integrity issues, very few, if any, brand safety issues and we have known and accepted viewability standards that we trade on. What’s been missing is the targeting opportunity.”

He also stated that GroupM is ready and able to invest client money in addressable TV advertising when it rolls out in Australia.

“I didn’t just come down all this way for kicks,” he says. “In markets where we do have addressability going, the constraint is inventory for now and we spend more time explaining to clients why they can’t invest more.”

Rebalancing budgets

Gotlieb points out that today between 70% to 80% of marketing budgets go towards trade support, such as in-store promotions and sampling. He believes this contradicts the reality that television and other forms of above the line media offer better bang for a marketer’s buck.

“There are a lot components such as sampling that is not very efficient and couponing is cost poor,” Gotlieb explains. “If you talk about a $40 CPM (for TV), do the maths – you are 4 cents per impression. A coupon costs you 50 cents to a buck – and that’s a prime time TV spot.

“Television as a medium is engaging, compelling, safe but importantly it is relatively efficient and certainly when compared to areas where clients allocate 70-80% of their budgets.”

Although Gotlieb believes addressable advertising can help TV reach further down the marketing funnel, he warns CMOs that if they ignore top of the funnel investment, they do so “at their own peril.”

He explains: “If you focus too heavily on targeting, what you are doing is you’re identifying the lowest hanging fruit and you are allocating all of your resources to plucking that low hanging fruit. But lest you forget to water the tree, there is no next generation of fruit. One can not over-emphasise the importance of top of the funnel marketing.”

Although addressable advertising should help TV play further down the funnel, marketers who turn the hose away from top of the funnel marketing and focus purely on cutting cost will lose out in the end.

By Arvind Hickman

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https://www.invidi.com/wp-content/uploads/2018/02/irwin-gotleib2.jpg 227 300 Loria https://www.invidi.com/wp-content/uploads/2017/11/logo-sticky.png Loria2018-02-26 12:37:082018-02-26 12:37:08GroupM global chair: ‘Australian media budgets have gone too far digital’

IAB Names Best Practices for Audience-Based Advanced TV Targeting

February 22, 2018/in News /by Loria

(ONLINEVIDEO.NET) – For video advertisers just getting started with streaming options, the IAB’s Advanced TV Working Group has created a helpful two-page Advanced TV Targeting Overview. It’s a great resource for understanding what advanced TV and addressable TV are, discovering how both let advertisers target consumers, and learning best practices.

Advanced TV, the guide explains is a blanket term that covers everything beyond traditional linear TV, including OTT and connected TV, addressable TV, and addressable VOD. With advanced TV, advertisers can target individual houses and serve more relevant ads.

blockchain IAB advanced tv targeting“The television ecosystem is changing and providing great opportunity to advertisers—including the ability to conduct advanced TV targeting (i.e. serve one ad to one household as opposed to broadcasting the same ad to all households),” explains Eric John, deputy director of the IAB Digital Video Center of Excellence. “This ability to execute audience-based targeting is growing and increasing in popularity among marketers. As the guide points out, IAB estimates 56 percent of consumers’ TVs are IP-connected and according to ComScore, there are 51 million OTT households. At the same time, addressable TV ad spending is expected to reach $3.04 billion in 2019 (includes VOD, but excludes OTT).”

One section of the guide offers best practices for advertisers working with advanced TV buys:

  • Use frequency capping when possible.
  • Work with an experienced data onboarder to map out targeted segments.
  • Stream high-quality mezzanine files for better looking ads.
  • Make sure to get transparent third-party campaign measures that might include demo guarantees.

“We expect both sellers and buyers to be able to use this document to educate the industry on advanced TV targeting,” John says. “The targeting primer will arm advertisers and media buyers with practical advice on how to create and manage audience-based buys and target audiences through addressable TV (set-top box-driven campaigns) and OTT campaigns. Sellers can also use the document as they sell to help cultivate an understanding and confidence in advanced TV targeting.”

For more, download the guide for free (no registration required).

BY TROY DREIER

 

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All the right marketing technology for advanced TV media buying

February 15, 2018/in News /by Loria

(MARTECH TODAY)

3 game-changing advancements put TV advertising back in the limelight

Every marketer, regardless of discipline, has a holy grail in mind. For analysts, it may be having a holistic view of the customer journey. For creatives, it may be having the team and tools to conceptualize and generate impactful experiences. And for media buyers, it may be the ability to take a single media plan and easily purchase ad space across devices, channels and platforms.

This particular vision for media buyers has been discussed for decades, and it is finally starting to change at the big agencies. This seismic shift is trickling down to small to midsize agencies, and it’s happening now because TV is finally becoming measurable. Agencies and advertisers can now buy data-driven local and national TV that includes conversion or attribution measurement. Other data-driven video formats like Connected TV (CTV) and Over-The-Top (OTT) are also starting to gain traction among buyers, and they will show greater promise once they become scalable and measurement is more consistent. TV media buyers are starting to use their same first-party audiences or use consistent third segments across these formats — sometimes bundled by programmers themselves.

With such significant changes afoot, it’s imperative for TV media buyers to connect with their digital counterparts and see how they can share platforms and processes. There could be existing capabilities in their companies’ martech stacks that may move them closer to reaching their holy grail.

Here are three marketing technologies that digital marketers are using that could easily be applied to TV.

Identity resolution

Identity resolution has been around for several years. It grew out of marketers’ need to reach real people across channels in a world increasingly fragmented by digital IDs and cookies. This technology resolves identities in an anonymized, privacy-conscious way across all channels, platforms and silos, allowing marketers to conduct people-based marketing and measurement everywhere.

TV advertising buyers can use identity resolution to understand new and existing audiences, segment them properly, send them a targeted commercial or video ad, and then measure the impact of those placements. It unlocks the promise of advanced TV, helping the mass advertising vehicle that is TV become more data-driven and thus regain its proper and true value in the advertising ecosystem. To those who have been in the business for awhile, identity resolution is a game-changer that’s altering the nature of TV ad buying and benefiting all in the ecosystem.

Data lakes

Data lakes, like identity resolution, grew out of the reality of the amount of data exploding and the need to organize and manage it. It is a fairly new technology that, as its name suggests, is a vast repository where marketers can bring all of their customer data together for management and analysis. Data lakes allow in-house analysts and data scientists to access information at any time and get a holistic view of their customers’ journeys.

Identity resolution and data lakes go hand in hand as the former connects data through a consistent people-based individual ID. It is the thread that ties structured and unstructured data together. This enables marketers to combine not only disparate first-party data together, but second- and third-party information as well, creating a complete view of target audiences that marketers across TV and digital require. It’s important to note that online and TV audience segments can be the same but are subject to different business rules. This consideration, in addition to ensuring that all data is transparent and ethically sourced, is vital to take into account when building a data lake.

Measurement tools

ROI is something marketers have been asked to prove since the dawn of advertising. In Don Draper’s day, it would have been measured purely in sales. Today, with so many more consumer touch points, it can be difficult to determine marketing’s exact impact on sales, brand awareness and other success metrics.

Many marketers are rising to the challenge by employing a variety of measurement tactics and platforms, from employing closed-loop measurement tactics like the Facebook Conversions API — which simply shows how many people saw an ad on Facebook and bought something from the advertiser — to multi-touch attribution and other more mature ways of measuring marketing at the individual level. Some of the platforms providing this granular understanding of marketing efficacy can provide data and analysis of TV, as well as digital channels. This makes it significantly easier to see and understand the customer journey, create cohesive omnichannel campaigns, and further empower media teams to collaborate.

Of course, it takes a lot more than identity resolution, data lakes and measurement tools to bring advanced TV campaigns to life. Below are questions TV teams should ask of their current martech platforms or vendors they’re vetting:

Audience data, segmentation and targeting

  • Do you have access to “rich” audience data (demographics, industry-specific consumer data) to help match my media buys to precise audiences and households?
  • Can you help me estimate reach with real-time counts?
  • How can I include my first-party data to enhance the audience definition?

Common audience segments across devices and channels

  • How does your solution accurately identify consumers across devices (PC, smartphone, tablet, OTT) and channels (TV, digital, offline) so that I can reach “apples-to-apples” audience segments across platforms (e.g., Addressable, VOD, Linear, Digital)?

Campaign activation

  • How does your solution help me to execute my advertising campaigns across multiple TV viewing options: Addressable, OTT, and across local and national linear inventory?
  • How does your solution help me to activate my “owned” media channels (e.g., network seeks to promote their TV content via promotional or tune-in ads)?

Campaign measurement

  • Does your solution provide post-campaign analysis so that I can understand campaign reach and frequency across TV and digital platforms for a target audience?
  • Does your solution help me to quantify conversion lift and ROI via integration with CRM systems, advertisers and partners?
  • How much would I typically pay for measurement and analytics services?
  • How long does it take to execute data segmentation, set up integrations and so on before I can actually use the tools and services for targeting and activation? And once I am ready to go, what are the associated SLAs for each service?
  • Can you help me bring my media planning, activation and measurement closer to real time or near-real time holistically?

Consumer privacy

  • Does your solution protect my customer data in a “safe haven” that anonymizes PII so that I comply with ethical data use, legal or privacy requirements?
  • How does your solution integrate PII data (e.g., Addressable TV) and anonymous data (e.g., digital display) in a privacy-compliant manner?

As advertisers and agencies expand their current martech stacks’ capabilities or speak with new potential vendors, it’s important to bear in mind the importance of playing nicely in the sandbox. This means seeking providers who actively break down data silos.

The TV and digital worlds are converging, giving greater force to the movement of interoperability across the ecosystem. Jumping on this trend now can only pay dividends to early adopters as other advertising channels, from billboards to Internet of Things devices, go the way of TV.

ABOUT THE AUTHOR
Sponsored Content: LiveRamp

LiveRamp offers brands and the companies they work with identity resolution that is integrated throughout the digital ecosystem, and provides the foundation for omnichannel marketing. IdentityLink transforms the technology platforms used by our clients into people-based marketing channels that improve the relevancy of marketing, and ultimately allow consumers to better connect with the brands and products they love. LiveRamp is an Acxiom company (NASDAQ: ACXM), delivering ethical and privacy-conscious solutions to market and honoring the best practices of leading associations including the Digital Advertising Alliance’s (DAA) ICON and App Choices programs. For more information, visit www.LiveRamp.com.

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Data-driven Addressable Advertising – The Next Frontier

February 14, 2018/in Blog /by Loria

Read the trade press. Go to a conference. Chat with your colleagues.  Everybody is talking about data.  If you believe the hype, data is going to revolutionize TV advertising.  We hear about how a complex target can be defined well beyond the Neilsen cohorts that have driven TV advertising for decades.  Examples of some new target audiences include auto intenders with more than two children; dog owners who buy premium brands; and even consumer package goods customers who buy competing brands. Clearly this is a far cry from buying solely on age and gender.  But is this the ultimate vision or can more be done to unleash the power of data?

First, let’s define the various types of data as it relates to TV advertising.

Viewership Data

Most discussions surrounding data focus on the characteristics of the viewer.  Data is collected by service providers showing which set-top boxes (STBs) are tuned to which programs at any given time. When the characteristics of the household in which the STBs are located are matched with the viewership data, it is possible to gather ratings specific to the advertiser’s chosen audience.  Target/viewership data is just the starting point.

Impression Data

The next type of data is more campaign specific.  In order to measure the effect of the campaign, we need to know who saw the ad, how many times they saw it, and for how long.  This is impression data. The data must be anonymized to protect viewer privacy, but the data can be used to determine reach and frequency.

Conversion Data

The last type of data provides an indication of viewer action after seeing the ad. In the vernacular, this is known as attribution or conversion data.  Actions do not have to be purchases.  Any Key Performance Indicator (KPI) can be used.  Visits to websites, calls to a toll-free number, credit card applications, requests for information, are all examples of KPIs that can be used. Pairing impressions with conversions can show the effectiveness of the ads.  Again, this must be done in a privacy-centric manner, but if done that way the data is extremely powerful.

There are many ways to use the various forms of data.  ROI analysis, A/B testing, and even the use of cross tabulations are just the beginning. Data will open up the world of automatic campaign optimization and even impression-based programmatic buying. The next frontier of TV advertising is just beginning.

Written by Howard Fiderer, SVP Strategic Corporate Development and Product Line Management

https://www.invidi.com/wp-content/uploads/2018/02/Male-doing-estimation-on-screen-817442226_727x485.jpeg 483 724 Loria https://www.invidi.com/wp-content/uploads/2017/11/logo-sticky.png Loria2018-02-14 18:04:442018-02-14 18:09:26Data-driven Addressable Advertising – The Next Frontier

Digital Expectations in a Television World

February 14, 2018/in News /by Loria

(MARTECH ADVISOR) – Remember the “good ole days” in advertising? For starters, there weren’t that many options for reaching consumers. You could run a spot on TV or radio, a print ad in a magazine or newspaper or a billboard in outdoor advertising. Targeting was almost exclusively based on demographics—females, 25 to 54—and success was measured primarily by how much of your target audience was exposed to the ad.

That was consumer advertising for many decades. But then about two decades ago, not long after computer scientist Tim Berners-Lee invented the World Wide Web, the world of advertising changed forever. (Despite his claim to the contrary, Al Gore did not invent the Internet.)

Once people began consuming content via computers, advertisers had new ways of identifying consumers and knowing when they were exposed to a digital ad. As these methodologies advanced, so did the ability to target and measure ads.

A Brave New World

Today, advertisers have nearly unlimited ways to target consumers using digital advertising: what they paid for their house and who lives there, the cars they drive, the groceries they buy, the places they go and the hobbies they enjoy. And the same source of data thats used for targeting can also be leveraged to measure the impact of the advertising. It’s no longer good enough to know if they were exposed to the ad; advertisers rightly want to understand if the ad caused the person to visit a store and purchase the advertised product.

Now that advertisers have grown comfortable with the precise targeting and measurement of digital advertising, they expect to have the same ability in traditional advertising, including the medium advertisers choose to spend the most dollars in:  television. “As television advances with things like addressable TV and set-top box data, there is an increase in requests from clients to apply the same targeting practices and audience-defining capabilities to TV as we do in digital,” noted Denise Colella, Senior Vice President of Advanced Advertising Products and Strategy at NBCUniversal in an interview with eMarketer.

Addressable TV to the Rescue

While digital-like targeting and measurement isn’t yet possible with linear television, it is with addressable TV.  Households accessible via addressable TV can receive different ads based on who they are and what they are likely to buy. While during a commercial break I might see ads for Mercedes, Nutella and a drug prescribed for cancer treatment, my neighbor might see ads from Chevy, Pampers, and eTrade. The addressable set-top box acts much like a digital ad server, determining which ad to serve up based on who is receiving the ad.

In 2016, there were 68 million addressable television households in the US, being served by providers such as AT&T’s DirecTV, Dish or Comcast’s xfinity. Advertisers running ads on addressable TV can leverage many of the same data sources for precise audience targeting and measuring in-store sales lift, enjoying the same benefits they have grown accustomed to with digital advertising. It’s especially ideal for regional brands who don’t want to reach a national audience, making television affordable to advertisers who previously couldn’t afford the waste of linear broadcast TV.

But Wait, There’s More!

Relying on addressable TV as the silver bullet presents challenges, however.  For one, you still won’t be able to reach so-called “cord cutters”—people who have ditched cable television for more affordable streaming services, such as Hulu and Netflix. Nor will you reach “cord nevers”—people who’ve never subscribed to cable television. That’s a growing audience, with one out of every five U.S. households choosing not subscribing to pay television. It’s most prevalent with younger audiences—often the most coveted consumers—with adults 18 to 34 chalking up more than 30 billion hours watching television via digital methods on demand vs. only 19 billion hours watching live television.

And then there are the multi-screen viewers, which is just about everyone today. A Nielsen Technographic study in 2015 found that 65% of U.S. online adults use another device while watching television. Who hasn’t picked up their smartphone while simultaneously watching a TV show or had their tablet or laptop balanced on their lap while watching a movie?

The point? Advertising shouldn’t be an either-or proposition, but rather an and proposition . Smart advertisers are running both addressable television campaigns with digital campaigns, in a coordinated and synchronized manner. Providers such as DirecTV offer the ability to purchase a single ad campaign that reaches the identically targeted households on both addressable TV and their digital devices (smartphones, tablets, desktops, laptops). That way they are assured of reaching both the pay-TV subscribers as well as those only consuming content on digital devices and reaching everyone simultaneously during the same commercial breaks. What’s more, the advertiser receives a single measurement study for the campaign that compares the sales impact of those reached only by digital TV, those reached only via their digital devices and the incremental gains from being reached on both during the campaign period.

Talk about the best of both worlds! By maximizing reach and frequency with the target audience—no matter how precise—advertisers enjoy the rich, precise targeting and meaningful measurement they’ve grown accustomed to with digital advertising while also leveraging the tremendous brand impact made possible by television commercials. It’s truly a win-win: the advertiser achieves more effective and impactful promotion while the consumer gets to enjoy consuming content where, when and how they choose.

It’s a brave new world in advertising—one that no doubt would have heads of the “mad men” of the 70’s spinning—but one that promises to finally achieve true people-based marketing  by treating every consumer as an individual no matter how and where they choose to consume content.

Written by Chuck Moxley, Chief Marketing Officer, 4INFO

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Chipotle sets eyes on addressable TV ads for 2018

February 8, 2018/in News /by Loria

Dive Brief:

  • Chipotle Mexican Grill Inc. plans to focus on “addressable TV” ads over traditional broadcast TV for its 2018 advertising campaigns, said Mark Crumpacker, Chipotle’s chief marketing and strategy officer, during the company’s Q4 2017 earnings call on Feb. 6.
  • Taking the addressable TV route will let the company better target ads to existing or potential customers, Crumpacker said. Chipotle will leverage its 25th anniversary in its marketing campaigns later this year, mostly targeting existing, loyal customers, though no other details of the campaign were released.
  • Overall, the company is shifting to more traditional platforms like TV, but now with a more targeted approach. Along with addressable TV, Chipotle is adding a CRM platform and loyalty program to its digital marketing strategy, which also includes a greater emphasis on enhancing its digital offerings and mobile order usage.

Dive Insight:

Marketers are increasingly moving their ad dollars away from TV and onto digital platforms as more consumers cut the cable cord, and addressable ads can offer them the best of both worlds. Campaigns can still appear on traditional platforms like TV while letting marketers leverage the targeting tools that come with digital, including targeting specific audience demographics like age, gender or location for their ads to be delivered. In its earnings call, Chipotle’s CMO highlighted the strategy as the company’s way to pivot back to traditional marketing.

Addressable TV ads are purchased by programmatic and digital technology, which offer high levels of personalization, something consumers are growing to expect. The ads are delivered by cable, satellite or broadcast TV providers and distributed on live and on-demand viewing sessions. In 2017, addressable TV ads were projected to grow 65.8% to $1.26 billion, eMarketer estimated. Though targeted ads on TV are growing as the technology evolves, they still make up less than 2% of all TV ad spend.

Until recently, addressable TV ads were only available on satellite and cable, but the Federal Communications Commission recently approved them for broadcast using an internet protocol signal. The move gives local TV stations a way to offer advertisers better targeting options and better compete for advertising dollars against giants like Facebook and Google. Last year, Googleadded targeted and programmatic buying through its DoubleClick Bid Manager to help marketers link their digital and TV efforts.

Written By Erica Sweeney
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