That means spending on addressable TV – with which buyers can use advanced data and return path to more precisely target viewers and households – would represent only around 1.1% of total US TV ad spend.
What could draw more spending? For one, we know that US OTT device penetration is high – but also that much consumption through those is devices is of ad-free, subscription VOD.
Furthermore, the Beet Retreat heard many views about the importance of scale, with claims that ” about 15% of advertisers are using advanced TV, (but) 50% are sitting on the sidelines“, worries that many advertisers are still just experimenting and a call for more inventory to be given to addressable TV.
In this panel, several executives further debated how addressable can hit scale.
Even the largest of media companies is grappling with how to transform their ad sales initiatives…
Laura Nelson, SVP, Audience Solutions, Disney Advertising Sales:
“The whole reason that you’re seeing all this consolidation in the media industry is to get scale, and to get reach. Other companies have already done it. We’re doing it at our point.
“We had all these individual businesses that had different types of scale. In the linear side, it worked – but now we have to spend millions of dollars … to find the right partners to be able to activate the inventory and look at it holistically.
Years ago, few may have predicted that paid video over the internet would be as big as it has become. But the rise of Netflix and Amazon now presents a challenge to media companies. Panelists discussed whether those players would emerge in to TV ad sales, and how TV companies must team to compete…
Laura Nelson, SVP, Audience Solutions, Disney Advertising Sales:
“If you think of our competitors particularly in the space like Netflix and Amazon. Netflix has scale, but are they going to be able to sustain what they’re doing with one revenue stream (subscription)?
“Amazon, on the other hand, is a whole other thing. Right? They have this whole base. They have multiple revenue streams coming in, and then they’re going to invest in content. To me, they feel like our biggest competitor from a scale and a reach perspective.”
Tony Yi, GM, Business Development, Amobee:
“They’re going to invest, between Netflix and Amazon, over $20 billion next year, which is larger than most of the TV ad revenues of any single companies in this room. They own the entire consumer funnel.
“We in the TV industry … need better consortiums, better marketplaces, better easier ways for the buy side to buy in a more frictionless manner. I think we’re seeing that right now with EGTA, with EVX, with RTLs, TV Marketplace, with OpenAP. We see a lot of starts to that solution.”
The internal structure of the relationship between advertiser brands and their buying agencies influences the kind of ad inventory being chased, which may ultimately impact outcomes…
David Hohman, EVP & Managing Director, Nielsen:
“Right now, most of the media agencies are winning business on a savings guarantee, which means that they have to show the advertiser that they’re spending less money. They want reductions every single year.
“So, there’s this pressure on agencies who are trying to innovate, who are trying to do the right things for their clients, and in the end of the day, they’re chasing low CPMs.”
The entire media universe is growing – but consumers still only have 24 hours in a given day. Panel host Ashley J. Swartz of Furious Corp cited eMarketer research showing 2018 consumer media time went from 12 hours and 7 minutes to 12 hours and 8 minutes a day. She asked if consumers’ capacity to consume content naturally limits scale…
Tony Yi, GM, Business Development, Amobee:
“The latest stats on Facebook are that less than 20% of their audience will view a video ad for more than three seconds. That’s not going to move the needle.
“I definitely think there’s a capacity issue – the human conscience capacity issue.”
This video was produced in San Juan, Puerto Rico at the Beet.TV executive retreat. Please find more videos from the series on this page.
The Beet Retreat was presented by NCC along with Amobee, Dish Media, Oath and Google.
]]>The currency foundation, according to Hohman, is Nielsen Total Audience ratings, which encompass traditional linear C3 and C7 metrics, and its Digital Ad Ratings.
Total Audience measurement produces a “currency level metric that is based on a foundation of representational viewing. So everybody who can see as well as persons-level measurement so that you can de-duplicate across platforms,” says Hohman, who is EVP and Managing Director.
Metrics to monetize reside on top of Total Audience measurement to trade or negotiate on price, guarantees and outcomes.
Asked whether Nielsen has a means of measuring viewer exposure to new iterations of traditional commercial pods and the quality of those exposures, Hohman says that would be a function of the monetization metrics.
“I think the answer to that is what is the marketer trying to achieve. Could be upper-funnel awareness metrics, driving store purchases. Those are very different objectives and the KPI that’s being used to get to the effectiveness isn’t always the same thing.”
It’s Nielsen’s function to show how many people saw ads, who they are, how many times the ads were seen and across what devices.
“That gives you the ability to de-duplicate. So that if I’m trying to attract or engage with a consumer, an individual, not a device, not a household, then I can say from a reach and frequency standpoint what’s the most effective way to deliver that message, potentially sequentially across platforms, to drive a specific outcome.”
To underscore the difference between a foundational currency and monetization metrics, Hohman points to the currency markets. “I think that’s an important distinction because when people talk about foreign currency as a proxy for why we should have multiple currencies, it’s always indexed to the dollar. You can do a comparable measurement from Yen to Pound Sterling to Kronor and the reason that works is because you’re get like-for-like value.”
Some in the industry have voiced the need for more than one cross-platform measurement currency, but no Hohman. “I’m not sure that there need to be multiple currencies. I think that there need to be a variety of KPI’s to address what a marketer is trying to achieve. That has to be tied to a currency level gold standard if you will.”
This video was produced in San Juan, Puerto Rico at the Beet.TV executive retreat. Please find more videos from the series on this page. The Beet Retreat was presented by NCC along with Amobee, Dish Media, Oath and Google.
]]>Now measuring media consumption is just as likely to be about taking actual raw data from publishers and networks.
But that doesn’t mean the classical audience panel cannot still have relevance today. In fact, it can help data-driven measurement fly, says Nielsen’s EVP for agency solutions.
“They’re gold standard,” David Hohman tells Beet.TV. “They’re audited by the MRC. We have auditors from Ernst & Young in our operations center in Tampa that are there all the time. They’re embedded.
“It provides a level of quality and performance that you can’t get other places. Especially in light of GDPR, the quality of the data is really, really important, and so Nielsen doesn’t compromise. The data is what it says it is. The metadata is consistent, and we’re trying to do that across all the platforms that we engage with.
“What the gold-standard panel does is eliminate, or at least correct for, some of the noise and the anomalies in big data. Data by itself is not useful. It’s the insights you can glean from the data. The insights that you can glean from good data are far superior to just lots of records. The size of the data set is not necessarily the be all and end all of its value.”
This video is part of Beet.TV’s coverage of Cannes Lions 2018. For more videos from Cannes, please visit this page.
]]>Does any of this matter? Some marketers are becoming excited about the prospect of unifying ad measurements in to a single, holistic metric. But is that feasible? An entertaining panel convened at Beet.TV’s recent executive retreat debated…
This video was produced at the Beet.TV executive retreat presented by Videology with Adobe, AT&T AdWorks and Nielsen.
The panel was moderated by Furious Corp CEO Ashley Swartz.
You can find more videos from the Beet Retreat on this page.
]]>They were interviewed by Collective Digital Studio SVP Paul Kontonis at the Beet.TV video advertising summit on “outstream” advertising presented by Ebuzzing & Teads. Please find more videos from that event here.
]]>“Fundamentally, it will probably be the same,” Nielsen agency solutions EVP Dave Hohman tells Beet.TV. “Because there will be changes in the way day-parts are sold. Programs (will be) evaluated on the basis of moving to not just delivery but driving (viewer) resonance or reaction or brand equity and sales measures that advertisers are interested in.”
Whilst this may not grow the overall pie, Hohman agrees addressable TV will give advertisers better bang for the same amount of bucks.
Hohman was interviewed by Furious Minds CEO Ashley J. Swartz during Beet.TV’s annual executive retreat in Vieques, Puerto Rico.
]]>The problem? Ad planning hierarchies are “siloed”, Hohman reckons: “The greatest thing that could happen to the media industry,” he says, “is moving from the way that media agencies are compensated, which is often on a savings guarantee, which is forcing them to chase lower CPMs and potentially less impactful, and moving toward performance that’s based on business results – am I driving brand equity, am I increasing the sales or market share of my advertiser?”
Hohman was interviewed by Furious Minds CEO Ashley J. Swartz at Beet.TV’s annual executive retreat in Vieques, Puerto Rico.
]]>“Creative, that’s our biggest hole,” Xaxis’ north America MD Brian Gleeson tells Beet.TV. “We’ve spent so much money and time in creative for broadcast – we aren’t doing our part as an industry to look at adaptive creative for digital video. We’re (just) packaging up a 30-second spot. That’s something we certainly have to make strides in.”
Fellow panelists at Beet.TV’s annual executive retreat in Vieques, Puerto Rico, agreed.
“Telling stories across platforms hasn’t really been cracked,” said Nielsen agency solutions EVP Dave Hohman. “Stories have been really mono-media-focused – you need to develop stories that work across time and across platforms – I don’t’ see that anywhere yet.”
No wonder this is the case. As Gleeson said: “It’s a TV world and we live in it.” Last month, GroupM created Modi, a new unit dedicated to taking addressable video ads to addressable TV, hyper-local TV and interactive TV. But is there sign of a kick-back?
“When digital came along, creative was somewhat forgotten and it became a very mathematical, quantitative world,” said comScore chair and co-founder Gian Fulgoni. “I think we’re at the beginning of a change in that. The device a message is delivered on demands something unique. I think we might be at the beginning of a resurgence.”
]]>“Lots of agencies and advertisers are asking for integrated multi-screen campaigns,” Hohman tells Beet.TV. “It’s difficult to get a constant and comparable measure across a lot of platforms and different devices – that’s critically important.
“If I’ve created some content and I want to be able to say ‘The value of this content exists beyond broadcast television’, what are the platforms or devices it’s being consumed on? I want to be able to measure that and contribute it to the rating that I’ve got for that program.”
Nielsen’s own solution spots whether a hit is for real-time or on-demand content, the content type, device type, delivery method and available ad models.
Beet.TV interviewed Hohman at the Beet.TV executive retreat in Vieques, Puerto Rico.
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