Round Table
Round Table
Advertising: On target at last?
Long gone are the days when advertising had an exclusive hold on the commercial revenue of television. But it still generates $ 175 billion worldwide and fuels many FTA networks. Now the oldest form of TV revenue is looked to in order to monetise the OTT services of broadcasters and pay-TV operators. The disadvantage is the audience is, by its very nature, fragmented. The advantage should be the data generated in an online environment that could provide the information to target ads right down to individuals. Advanced Television brought together four expert practitioners to debate the present and future of targeted advertising.
The first requirement for targeting is data, the more the better. What can OTT providers collect and are they making good use of it?
“ All of our media and entertainment customers have a vast amount of data at their disposal,” says Art Mimnaugh, head of business development, Adobe.“ We help them normalise that data across the different digital, linear, customer relationship databases so that they are actually able to derive unified insights such as lifetime value of a customer. Really trying to drive data normalisation that drives actionable insights.”
“ Data won’ t replace media trading, it enhances the buying and selling with more informed decisions,” comments Daniel Knapp, senior director, IHS Markit,“ the complexity unlocks potential. Programmatic or automated buying is now well established and the industry is looking ahead to predictive analytics and AI.”
Evolving Data
The way it’ s evolving is twofold,” states Allen Klosowski, VP Mobile & Connected Devices, SpotX.“ If I’ m a media owner, I’ m looking to take my first party data and use it to increase
“ This measure will hand a huge advantage to Google and Facebook.” – Daniel Knapp, IHS Markit
the yields of the inventory I already have. If I’ m a client I may have my own data I want to leverage, so the media owner and client deal is taking place but it is the infrastructure of providers like SpotX that allows that kind of data matching to happen and respects the value on both sides in a safe space.”
“ I think there is a lot to learn for broadcasters because the game has changed. Broadcasters can learn from other channels,” says Jim Hodgkins, MD agencies and platforms UK, Nielsen.“ TV still has an ability to reach big audiences but if you know the data you might want to serve different ads to lots of different parts of that audience.”
“ It is about saying here’ s the audience, here’ s the data to match it and here’ s how we can start measuring and validating that system across both traditional linear broadcast television as well as mobile and other types of engagement,” states Mimnaugh.
packaged for smaller demographic groups – age, sports fans, etc. Now the paradigm changes, the point is stop marketing for sameness and market for difference, stop bracketing people into preconceived groups and use data to find emergent categories. One caveat – TV has very different marketing dynamics to direct; some FMCGs have actually cut back on targeting online; big brands in all sectors cannot afford to just target, they need to build brands and aspiration,” comments Knapp.
“ I think the unicast environment still allows you to have reach but to be smarter and more proactive about it and be involved in that process in a way that wasn’ t possible before,” says Klosowski.
“ Yes, it’ s only now that we are starting to see brand and direct come together, the ability to have great reach and targeting and we are putting the tools in place to enable that to happen,” agrees Hodgkins.
“ It is important not to be constrained to the traditional form of transaction or creative,” says Mimnaugh.
Defintions
“ Everybody has a slightly different definition of programatic or OTT advertising,” says Klosowski,“ and there is some confusion in the convergence that is occurring. I think of programmatic as delivering a one to one relationship, on a non-sample basis across all screens across all platforms and that’ s the opportunity for the advertiser to get a better ROI and the media owner to achieve more from the same inventory.”
“ Nielsen has spent 90 years tracking what consumers watch and then looking at what
“ A lot is about trust and transparency right now.” – Art Mimnaugh, Adobe
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Segmentation
“ Television has always been about targeting and segmentation; there was regular TV and then in the 70s and 80s there was cable that
“ Advertisers are going to bring in their own data as well.” – Allen Klosowski, SpotX