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“There is scale there”: Myths of Addressable TV Advertising

DigiDay – For all of advertising’s holy grails, addressable TV is often held out as the holiest of them. An ad shown on a TV-size screen alongside TV-quality content but pinpointed with digital’s precision — it’s the thing of John Wanamaker’s dreams. But like any good dream, it’s hard to tell what’s real.

The distinction may become more difficult in 2019 as TV networks, cable and satellite TV providers and streaming TV services work to make more TV inventory available for addressable, which is TV’s term for “targeted,” advertising. In an attempt to head off the confusion, here are some of the biggest misconceptions surrounding addressable TV advertising.

Myth: Addressable TV means live, linear TV
This is more a matter of perception than a misconception or myth. Generally speaking, when people say addressable TV, they are referring to the two minutes an hour of ad inventory that TV networks allot to cable and satellite operators to sell on their live feeds. But the term is also accepted to include the on-demand programming accessed via a set-top box. And it spans the same inventory on streaming TV services such as Sling TV, DirecTV Now, YouTube TV and Hulu’s live TV service. There are some who throw in any TV show streamed over the internet, but that appears to be a radical interpretation.

Taking a consensus across those interviewed for this article, which includes ad buyers and ad sellers, addressable TV refers to ads that can be targeted to individual households against live and on-demand TV programming accessed through a cable, satellite or streaming TV service.

Myth: Addressable TV is way more expensive than regular TV
A typical ad running on a basic cable TV network can cost $10 for every thousand impressions. Against that yardstick, the $40 CPM for an average addressable TV campaign can seem pretty steep. But that’s the wrong yardstick, according to Tracey Scheppach, CEO and co-founded of Matter More Media, an agency that specializes in addressable TV and video advertising. Instead, Scheppach and others compare pricing on an effective CPM model, in which they calculate an ad’s price by taking the total money and dividing it by the number of impressions served to the intended audience.

Take, for instance, an advertiser looking to reach an audience of moms with young children. If that advertiser runs a non-addressable TV campaign for a $10 CPM and 10 percent of those ads are served to that audience, that works out to a $100 effective CPM (eCPM). Since an addressable campaign would be targeted specifically at that audience and only serve ads to viewers in that segment, the $40 CPM would equal a $40 eCPM.

“When you cut out the waste, the effective CPM is a lot more attractive,” said Michael Lyons, chief media officer at Bliss Point Media, an agency that specializes in video advertising.

Myth: Addressable TV doesn’t offer enough scale
Roughly one-eighth of TV inventory today is available for addressable advertising. There are more than 60 million households in the U.S. that can be served addressable ads on traditional cable and satellite TV, according to Jason Brown, vp and head of ad sales partnerships at Xandr.

“There is scale there. It just needs to be stitched together,” said Mike Piner, svp of video and data-driven investments at MullenLowe’s Mediahub.

Companies such as NCC Media — a TV advertising joint venture by Charter, Comcast and Cox that aggregates and sells cable operators’ VOD inventory for audience-based buys — are stitching together the respective operators’ addressable inventory. “If you’re Yoplait and want to target yogurt-loving moms, you can work with LiveRamp and NCC to execute across all three footprints,” said Allison Metcalfe, gm of TV at LiveRamp, the identity matching company formerly known as Acxiom.

Additionally, the share of TV inventory available for addressable advertising is extending beyond that two-minutes-per-hour that’s allotted to pay-TV distributors. Comcast has been working with network groups including NBCUniversal, which it owns, and Viacom to enable addressable advertising across more of the networks’ live and on-demand programming on its cable service. Similarly, AT&T, which owns Turner’s networks and Xandr’s advertising business, is expected to do the same across Turner’s linear and on-demand inventory.

Myth: Households can be addressed equally
While there are millions of addressable households in the U.S., not all of them are addressable to the same degree. As is the case with targeted advertising, the targeting is contingent on the underlying data. When it comes to addressable TV advertising, that underlying data has some gaps.

“There are households within a national sample that have a bunch of information about them — buying tendencies, income, etc. — and there’s also a big bunch of households that have almost no information,” said John Halley, evp and COO of Viacom Ad Solutions.

Ad tech companies such as LiveRamp are working to reconcile the disparate household data to bring households’ addressability into balance across various cable and satellite operators’ subscriber bases. Similarly, TV companies, including Viacom, NBCUniversal and Turner, have formed the OpenAP consortium to standardize their audience data in support of addressable advertising. But even that group is a small sample of the broader TV ecosystem and does not cover all the datasets that may be used for addressable advertising.

“It’s going to be a longer, complex period to develop the information layer that is required to transact at the kind of scale and quality that the broader-based buyers are used to,” said Halley.

Myth: Addressable TV is not applicable for brand advertisers
Addressable TV does not only suit advertisers looking to pinpoint the specific sliver of people likely to immediately run out and buy a brand’s product after seeing an ad. Brand advertisers looking to reach a wide audience may find it valuable to use addressable advertising to tailor their messages to certain segments within that audience, such as Spanish-speaking households or households with kids of a certain age, said Piner. Similarly, advertisers can use addressable advertising to frequency cap their campaigns so that individual households aren’t bombarded with the same ad by a brand to the point of annoyance, said Brown.

Myth: There’s no way to measure an addressable TV ad against business results
“Some folks still feel that [addressable TV advertising] can’t close the loop like digital. That’s not true,” said Brown. Xandr has run studies with auto brands, for example, to anonymously combine its ad exposure data with dealership sales data collected by companies such as Polk and Experian to measure any lift in sales for people who saw a brand’s ad against those who didn’t see it. The company performs similar lift measurement studies for consumer packaged goods advertisers using in-store purchase data from Nielsen Catalina Solutions.

Originally post on December 19th, 2018 by Tim Peterson

INVIDI Technologies Announces the Acquisition of Ooyala’s Advertising Technology Division

Princeton, NJ (December 5, 2018) – INVIDI Technologies Corporation, the leading provider of addressable television advertising systems, announced today they have acquired the advertising technology division (formerly Videoplaza) of Ooyala.  The division provides a Software as a Service (SaaS) ad serving platform specializing in digital video advertising and programmatic trading.  INVIDI will bring on over forty software engineers and account managers in the US, UK, Sweden and India. Financial terms of the transaction were not disclosed.

The purchase of Ooyala’s Advertising Technology division, based in Stockholm, Sweden increases INVIDI’s global leadership position within the addressable advertising marketplace. Ooyala’s Pulse product, deployed with over 40 customers in Europe, India and other countries, is a sell-side video ad serving platform for broadcasters and premium publishers who run a digital video advertising business.  Pulse provides a holistic approach to ad serving allowing video publishers to manage, serve and optimize ad delivery and monetization across direct and programmatic sales channels, all within a single user interface.

“The combination of Ooyala’s advertising technology with INVIDI’s addressable television advertising system will provide our global clients with a best in class, cross-platform ad management and addressable advertising product suite” said David Downey, CEO of INVIDI. “INVIDI is dedicated to enhancing the value of TV advertising through addressable advertising wherever and whenever viewers are watching.  The acquisition of Ooyala’s advertising technology extends the reach of advertiser campaigns with a single campaign management system providing consistent experience management and enabling extended optimization techniques. “

About INVIDI Technologies Corporation
INVIDI is a developer of addressable advertising technology, allowing television advertisers to show their advertising spots to their targeted audiences more efficiently, more effectively and with significantly reduced waste. INVIDI contracts with leading multichannel video programming distributers (MVPDs) to include its software in their respective set-top boxes, DVRs and other user equipment devices to deliver targeted advertisements based on a variety of demographic attributes selected by the advertisers. INVIDI has also developed a cloud-based solution for deployment in Internet protocol-based platforms.  INVIDI’s proprietary addressable advertising technology is currently deployed in over 30 million households.

CONTACT: Drew Kerr, drew@four-corners.com, 212-849-8250
Michael Kubin, mkubin@invidi.com, 917-676-3590

Fragmented Viewership and Addressable Television

The media press appears obsessed with what’s happening to the television audience: Lower viewership levels and greater fragmentation. Viewership of commercially-supported television is certainly dropping. The impact of commercial-free programming from Netflix, Amazon and others is substantial, undeniable, and not reversible. We’re never returning to the good old days of three networks, 70+ prime time Houesholds Uisng Television (HUT) levels and 90+ 3-network shares. Life was so simple then – but we have to deal with this new reality and a future of even lower viewership and greater fragmentation.

Commercial television has seen the effects of several changes over the years. As the most impactful media available, it has driven the marketing success of a wide variety of consumer-facing products such as cars, consumer packaged goods, credit cards and insurance policies. Television’s power lay in its messaging (“sight, sound, motion and emotion”) as well as the vast audience it was able to reach. That lasted until cable networks came along, atomizing viewership (“57 channels and nothin’ on”). The wide range of choices fragmented audiences making it very difficult, and very expensive, to accumulate unduplicated reach. Then the Internet arrived with its ability to target specific audiences and measure the impact of the campaign through the availability of direct purchaser data. Attribution (one of those magic media words that appear out of nowhere and quickly become ubiquitous) made it possible for marketers to use their media dollars with precision and effectiveness. Ad dollars began to pour out of television.

Facing these market realities, a senior network sales executive recently told me his business is under pressure because “viewing levels are dropping by 8% a year, I have a fixed number of advertisers and I’m being asked to increase ad revenues.”

That’s all true, but despite what so many Chicken Littles believe, the sky isn’t falling.

Addressable television advertising focuses on what is most important – a one to one relationship with each member of a large audience. Program-based audience ratings are not as important as unduplicated reach. Today the only thing that really matters is being able to figure out exactly who is in the advertiser’s target audience – think of direct mail. If you’re selling dog food, you want to reach dog owners. If there’s a dog living in 123 Elm Street, Peoria – you want to reach his owner. And if there’s a cat living in 124 Elm Street – you have no interest in reaching that household. Simple concept, challenging execution. But that’s exactly what addressable television advertising is able to do and with unparalleled success.

It’s taken addressable television advertising in the US about 15 years to develop into a tool sophisticated enough to attract hundreds of national advertisers spending billions in ad dollars. Its rapid growth indicates it will continue to conquer a growing share of television ad dollars. Where in the past, television’s strength lay in cheap audiences, today addressable television’s strength is in both effective targeting as well as a re-aggregation of reach. It is now less important to select which program the viewer is watching; the important thing is that he/she is watching at all. When the viewer is watching, addressable technology is able to send the right message to that viewer, put a frequency cap on it so the advertiser doesn’t suffer huge variations in message delivery rates or drive viewer burn out, and ultimately, use attribution techniques to figure out which campaigns and audience segments worked best. That leads to a game change, coupling the ipact of TV with the kind of optimization that has been at the heart of success for online advertisers.

Media seems to transform itself roughly every couple of decades: Radio was big from the 30s to the 50s, broadcast television went from the 50s until the early 80s, cable television from the 80s through the early 2000s, and we’re now at the end of the second decade of the Internet era. If history is any indicator, this new technology – addressable television advertising – will rapidly grow and absorb advertiser interest, transforming television from one-to-many into one-to-one.
Stay tuned.

Written by Michael Kubin, EVP Media

How an Acronym You’ve Probably Never Heard of Will Change TV Advertising Forever

ACR will kick the addressable revolution into overdrive

In ACR data, brands have the tools they need to execute true measurement and attribution. Getty Images

 

(AdWeek.com) – For years, brands have salivated over the prospect of fusing the best aspects of digital marketing with the tried-and-true canvas of linear television.

Unfortunately, a lack of addressable inventory and a paucity of measurement tools have prevented advertisers from executing campaigns at scale. Today, the addressable TV market, while growing, makes up a small fraction of the approximate $70 billion that brands spend annually on TV advertising.

On the bright side, all of this is beginning to change. In 2017, eMarketer estimates that addressable TV spending grew by more than 65 percent, topping $1 billion for the first time. Meanwhile, there are now more than 74 million households with the requisite technology to be targeted on a one-to-one level.

“Whereas an addressable ad buy tells brands who they’re paying to reach, ACR (automated content recognition) data tells them whether those folks actually viewed their ad.”

But what’s really going to kick the addressable revolution into overdrive is the rise of ACR (automated content recognition) data. If you’re unfamiliar, ACR is a technology used to automatically detect and index content that is playing on television in real-time. As a result, brands are able to use this information to determine when a given consumer sees their ad. As ACR data becomes more widespread, the sky’s the limit for addressable TV.

Addressable’s steady growth is beginning to add up

At the beginning of March, Forrester Research analyst Jim Nail published a survey indicating that addressable TV had reached what he described as an “inflection point.” The report found that 15 percent of the surveyed Association of National Advertisers members are regularly using addressable in their TV plans, with an additional 35 percent reporting that they have experimented, but need to learn more.

Indeed, as AT&T AdWorks president Rick Welday noted in an opinion piece late last year, addressable is already in use by a number of major travel brands. He went on to describe the ways that airlines and amusements parks drove awareness, intent and recall by honing in on audience segments such as “25-54 year-old married women with children in the household.” With that kind of “incredibly sophisticated data-driven targeting” in a “premium, brand-safe environment,” it’s no wonder that GroupM’s Jakob Nielsen recently described addressable TV as “the most sexy advertising product in the world.”

ACR is about to take addressable to the next level

Of course, addressable TV is about to get even “sexier.” In ACR data, brands have the tools they need to execute true measurement and attribution.

Whereas an addressable ad buy tells brands who they’re paying to reach, ACR data tells them whether those folks actually viewed their ad. Previously, the multiple system operators (MSOs) or multichannel video programming distributors (MVPDs) which ran the addressable campaign were the only source of activation data. ACR data provides the first independent verifiable source.

Moreover, by connecting ACR exposure data to offline shopping data sets, advertisers can close the loop on whether their targeted addressable campaign actually delivered results. For instance, a insurance brand might use ACR data to compare the policy binds from people who saw its linear TV ad against a those from an addressable TV campaign. They can then understand cost per new policy sold across both campaigns and identify segments that react to one over the others for future investments.

ACR data also provides cost efficiency for addressable ads, and MSOs and MVPDs can leverage the ad exposure data at device level to fine-tune the targeting of addressable ads by eliminating segments that are already getting a higher frequency on linear and adding segments that are low or zero frequency on linear for specific brands, thus eliminating waste.

It’s time to start preparing for an addressable future

All signs point to addressable TV growing its market share with each passing year. In fact, eMarketer predicts that U.S. addressable spend will increase by nearly 80 percent in 2018 alone. And with ACR data providing the closed-loop attribution our industry has long sought, brands can finally spend with full confidence that they’re really getting their money’s worth.

For advertisers, the time is now to begin investing in this exciting, emerging medium. When all of your competitors are putting their money into high-performing, precisely targeted television campaigns, you can’t afford to be left behind.

Written by: Ashish Chordia, founder & CEO of Alphonso.

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Liberty Global to use machine learning to target ad market with Liberty Insights

Liberty Global is going on the offensive against tech giants Google and Facebook by working collaboratively with broadcasters and the veracity and scale of data harvested from its own platforms.

Laurence Miall-d’Aout

(DigitalTVEurope.com) – “There are lots of fears about how big the threat GAFA [Google, Apple, Facebook and Amazon] has become and how regulation doesn’t seem to apply to them but they don’t have the rich data about how customers behave which we do,” Laurence Miall-d’Aout, VP, data and advanced advertising, Liberty Global told Cable Congress in Dublin. “That is our data and it is up to us – and the cable industry as a whole – to harness this data better.

The cable giant is developing Liberty Insights, presented as a single platform encompassing aggregated consumer data from its 24 million customers, accessed over 14 million devices and uniting 15 billion viewing hours combining customer and viewing data with third party data.

It will use Machine Learning to offer insights on advertising and programming to broadcasters within its stable on a local and macro level.

Broadcasters are increasingly looking to exploit data from user sign-ins and subscriptions in the hope this will lift their fortunes in an advertising market dominated by the major tech platforms. This data will be used to generate the kind of personalised content recommendations that are familiar to customers of streaming services, while it will also allow for more relevant advertising, according to Liberty Global.

“Our first party data can measure against GAFA,” Miall-d’Aout declared. “We are an alternative to Facebook and Google.”

It is one of a multiplicity of industry initiatives seeking to fill the void left by standard TV audience measurements which have struggled to keep pace with advertiser demand for accurate and reliable cross-platform metrics.

“We cannot replace Nielsen and BARB,” she said. “Barb and Nielsen have rigourous research and methodology that we can learn from and even use for our algorithm. But our data with its granularity can provide attribution in a way TV could not offer before.

Like commercial TV broadcasters, the cable operator is looking to turn the concerns marketers such as P&G and Unilever have about brand safety into its advantage.

“A lot of brands turning away from digital money and we are pushing that money back to DTV,” she said.

She said Liberty offered the attributes which had enticed brands to digital platforms in the first place, namely: scale, data, attribution (accountability) and the ability to trade easily.

The company is rolling out addressable advertising in its various territories. With TV3 Group, the Irish commercial broadcaster it owns, Liberty will likely launch TA this year, through the partnership between Virgin Media and rival Sky [Sky AdSmart] announced last June. [TV3 is on track to rebrand its three channels – TV3, 3e and Be3 – as Virgin Media Television in the second quarter of 2018].

“We have opened up Virgin Media in the UK and Ireland where addressable ads are the beginning of the creation of a new marketplace [for addressable ads].”

It has made similar moves in Belgium with cable broadband services provider Telenet.

“As an ecosystem we need TV to stay relevant,” insisted Miall-d’Aout. “We need those TV broadcasters to make money and to that they can recoup some of their traditional business [from the tech giants] and that’s where our data can play a role.”

“We have been historically very poor in creating a unified data sets. The data sets in our organisation have been collected in silos making it difficult to change overnight to a culture based around AI and ML.

She added that the Liberty’s advanced advertising and data unit was on the hunt for ‘data scientists’ to help it adapt.

“I believe if we create our own data platform we can defend ourselves against GAFA,” said Miall-d’Aout. “We can use the data to launch new product, gain new audiences, derive new data and drive innovation.”

She added: “Seventy per cent of the big data initiatives are not profitable. We have the opportunity to change that at Liberty.”

Liberty Global has operations in 12 European countries under the consumer brands Virgin Media, Unitymedia, Telenet and UPC. In addition, it owns 50% of VodafoneZiggo, a joint venture in the Netherlands, as well as significant content investments in ITV, All3Media, LionsGate, Formula E racing series and several regional sports networks.

 

Written by Adrian Pennington

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Chipotle sets eyes on addressable TV ads for 2018

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.