Tag Archives: addressable advertising

The Battle Over The Pipeline

No, not the Keystone Pipeline, but the pipeline delivering content into US homes. Yesterday the FCC proposed a framework (whatever that means) for providing innovators, app developers and device manufacturers the information they need to develop new technologies. A link to the FCC’s statement on this is here: http://transition.fcc.gov/Daily_Releases/Daily_Business/2016/db0127/DOC-337449A1.pdf

So who is for and who is against?

No surprise, cable companies are against this because it does something they hate most, it creates competition for accessing TV programming. It also removes an important revenue stream—renting boxes to subscribers, generating billions to their coffers.

Basically everyone else in the world supports this. Imagine people having their own boxes (think Roku, AppleTV, Google Fiber) and deciding what programming they want through their cable company and what programming they want direct.

Another benefit for consumers will be the ease to transition from Cable TV to SVOD to YouTube, etc on your TV monitor. My favorite part might be a single remote instead of three. The question that remains is whether this will eventually reduce costs or increase costs. People are willing to pay for multiple services and convenience, so it could go either way.

Video content providers will see a boon and direct access to subscribers without having to be held captive to cable company’s demands and idiosyncrasies. With millions of options for video content people will curate their own personal networks. We will likely see even more short-form content with fewer ads as either pre-roll or in-stream with more real time ad insertion and addressability.

In the words of the French poet Paul Valery, “The future isn’t what it used to be”.

Tagged , , , , , , , , , , , , ,

The Television Data Shift

Today NBCU announced that it is going to be using data other than Nielsen to help marketers better identify audience value of their networks and programs. Linda Yaccarino, the head of sales for NBCU, thinks it puts TV on an even playing field with digital media’s data driven targeting, but in reality it does not.

Using data other than Nielsen ratings to decide which TV programming to buy ads in should be more commonplace today than it is. I’m glad that NBCU has made this step and hope others follow their lead, but to suggest that now TV is on equal footing with digital is a misstatement. Why? Because I cannot tell NBCU that I ONLY want my TV ad shown to those in their audience who exhibit the behavior I value. I still need to buy a TV ad in an entire program.

Don’t get me wrong, I think NBCU is taking a big stride in improving the way marketers make decisions on which TV shows to buy but any media planner worth their salt was already using other metrics and data streams. In truth, NBCU hasn’t even caught up with what can be done on TV with this move.

If a marketer wants to use addressable video ads delivered via TV there are already methods of doing that. Rather than place a buy with NBCU I would go directly to the cable provider. Remember, for many product categories the household is the buying unit, especially FMCG. Knowing which household is buying which laundry detergent is the most important consideration for Tide. The cable provider can tell me which households had a set that my ad (and my competitor’s ad) aired on based on set top box data. Many retailers can tell me which households bought which brand based on loyalty card data. A simple list match can reveal enough households to see whether advertising has any impact on sales, but more importantly new penetration.

The cable provider can execute addressable TV. I can “serve” different TV ads into different households based on their buying behaviors. Does Tide have an advantage they want to use to steal customers from Wisk? Is there a different benefit or incentive they want to use to lure away Cheer buyers? We can do that.

Thanks NBCU, but no thanks.

Tagged , , , , , , , , , , ,

Is The Addressor More Important Than The Addressee?

This is an important topic to discuss in the new age of programmatic buying, especially as it starts to creep out into traditional media. The historical method of advertising is interrupting content to present your message to the entire audience of a media vehicle (magazine, TV show, radio show). Okay, you could sometimes buy partial audiences based on geography or, in the case of print, extra content added for special audiences, but we were trained as media professionals to negotiate with media sellers to place our ads to a content seller’s entire audience based on that audience’s value as compared to the next seller’s audience.

Last week we met with a cable system operator who is starting to offer real addressability of their television audience based on HH data and set-top-box identity. I was thrilled because for many clients the HH is the buying unit and I’d rather message an accumulation of particular HH’s based on proclivity than a program’s audience—the former has to be more predictive to success than the latter.

That’s when our discussion got interesting. Does it matter what TV program an ad runs in or is the aggregate of addressable prospects more valuable? Some argue no because they were trained to evaluate and buy programs. But these days we’re dealing with new realities that don’t require us to buy total audiences. We have the data and the technology that enable us to deliver ads to individuals and therefore, in most cases, the venue is irrelevant. Much like most programmatic buys for online media, addressable TV frees us from investing large sums directly with content providers and now the distributor of that content, the cable operator, not the network or the syndicator is who we should be placing media buys with.

So what becomes critical with addressable TV? How about bad content. Huh? “That makes no sense”, you say. But if I want people to take action from an ad on TV I want my ad to be in content people are willing to abandon. That’s right and that’s what DR marketers have known for a long time.

Here’s where it gets even more interesting. Cable operators are selling ads to local businesses and DR marketers. Adding addressability to their quiver means national marketers with unique needs become a viable source to sell ads to. By creating an additional customer base the demand for their inventory increases, thus raising the bar for pricing on their inventory, creating another tier of ad pricing. Smart move cable operator. Extract more value from your current base and add an entirely new customer base. I’m buying.

What about you?

Tagged , , , ,
%d bloggers like this: