"Connected Ideas" is a column written by members of the TVexchanger community and containing fresh ideas on the digital revolution in TV and media.
Today's column is written by Ryan van Fleet is director of Insights and Analytics for Tremor Video.
Many marketing visionaries wholeheartedly believe that the time is ripe to complement TV budgets with cutting edge digital channels such as online video, mobile video, connected-TV and gaming.
After looking at Nielsen Fusion data for over 100 campaigns this past year, it’s clear that TV and online video have a yin and yang interplay. TV is still the best way to reach viewers, with online video effectively complementing the reach and frequency of television campaigns, especially when TV reaches a point of diminishing returns.
The analyzed campaigns represent $655 million worth of TV spend across broadcast, cable and syndication (spending data is based on Kantar Media analysis). We hypothesized that many of the campaigns included spending that failed to efficiently reach new consumers and generate an effective frequency. Today’s TV plans have not evolved with the times and are often inefficient. For example, some agencies and brands still refer to TV planning guidelines from 1999 that refer to a certain minimum needed: for CPG, the rule of thumb is 2,500 GRPs. In a multi-screen world where people consume media differently, the marketers who employ channels such as online video do not have to lean as heavily on TV to reach the same number of people.
Tremor Video identified $45 million worth of inefficient dollars across all of these campaigns, equivalent to about 7 percent of the total analyzed spend. In other words, the gain in TV reach for each incremental dollar spent was not enough to justify the spend. Nearly every campaign analyzed contained areas where additional TV spend was no longer effective.
The fun is not in running this data, but rather in the ability to simulate shifting the share of spending and uncover areas where a brand might be able to reach more consumers or increase effective reach to deliver complex messages without increasing spend.
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"Connected Ideas" is a column written by members of the TVexchanger community and containing fresh ideas on the digital revolution in TV and media.
Today's column is written by Krishnan Parasuraman, Chief Architect, Netezza Digital Media at IBM.
Over the last few years, Digital Media and the online advertising industry has seen enormous growth and innovation. 2012 seems to be the year where innovation and advancements from prior years will finally begin to converge to create the next set of opportunities for growth. Developments from prior years have teed us up to a place where convergence seems to be the mantra for 2012.
If 2011 was any indicator of things to come, we are only going to see a massive proliferation of purpose built devices and a phenomenal growth in online content. In order to effectively manage ad budgets and drive performance the industry needs to converge across various dimensions.
Convergence needs to occur in terms of how we manage audience attention across multiple devices and channels, how we buy media and measure success, how we think of inventory across different media types, how we track and manage identity and how we leverage location specific information.
1. Audience Attention: Television / Internet convergence
2011 saw an unprecedented growth in online media consumption and we are now at a point where audience attention is split pretty much evenly across television and the Internet. It was also the year where we saw rapid growth in online videos and a new generation of devices that make online viewing of video content easier.
Nielsen observed a growing trend among viewers increasingly tending to “co-view” video content across traditional/time-shifted television and mobile/Internet streaming video.Last year’s Consumer Electronic Show set the stage for the next generation of devices that delivered online experience via television sets. We are not only seeing the next generation TV sets from Sony, Samsung and LG with intrinsic Internet capabilities but also set top boxes (“Smart TVs”) from Google, Cisco and Yahoo that can bring the power of Internet to any TV. The number of connected TV sets is set to exceed the number of connected game consoles by end of 2012 and we will continue to see improvements in technologies that strive to provide a seamless video viewing experience across multiple devices.
The focus will now shift to advertisers and their ability to treat this as an integrated medium. With targeted TV ads set to takeoff, the learning and experiences from behavior targeting in the online world would now be applied to TV advertising. Tools such as Tivo and Quantcast’s cross platform measurement service would become the barometer to analyze media buying effectiveness across TV and Internet.
Point of convergence would be when advertisers are able to effectively use online and TV viewing activity for behavior targeting and understand clearly which TV campaigns influence online activity and vice versa.
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"Connected Ideas" is a column written by members of the TVexchanger community and containing fresh ideas on the digital revolution in TV and media.
