These and other topics were the focus of spirited and insightful debate at the recent Beet Retreat Miami 2017. Following are some of the more cogent exchanges during a panel featuring senior-level TV practitioners moderated by MediaLink Managing Director Matt Spiegel.

Tracey Scheppach, Co-Founder of Matter More Media, said waste is going to exist and when it does, there should be a lower CPM. Her take on planning starts with a client’s first-party data:

“I bump that up against addressable linear inventory, addressable VOD inventory, network index buys. Pretty much not using age and gender, but still price it out. We then look at where is the most economical place to reach the true target. Convert everything to an ECPM and look at what channels are driving conversion and adjust.”

Matt Bayer, SVP, Advanced TV & Cross Screen at Cadreon/IPG, said everything starts with KPI’s and defining the role of addressable video or TV:

“If CRM underpins those audiences, great. Doing a deep dive on CRM discovery is a great exercise but I think you have to first start with the role that it’s playing within the context of your comms plan and then back it up from there.”

Defining waste seems to be in the eye of the beholder. Here’s the perspective offered by Jonathan Bokor, Director, Precision Video, Publicis Media Exchange:

“It may be that some of your true target is in the waste. That waste in demo targeted TV is free. When you’re buying a targeted advanced TV buy like an addressable TV buy, you don’t get any of that free waste. All of that has to be taken into consideration.”

Jason Harrison, President of Team Arrow Partners, the agency dedicated to retailer Target, looks at everything based on return on ad spend. “That’s kind of the equalizer across all the different things we could spend money on. We also look at sales per impression, which is a measure that is irrespective of cost. Waste is actually paying a role that we don’t fully understand in driving returns.”

Ben Tatta, Co-Founder of data and analytics provider 605, has seen lots of conventional linear TV campaigns where a lot of what would be deemed waste was actually a base of households that are just more responsive to TV. “We do a lot of modification taking CRM segments and then modifying them based on those that are most responsive or most persuadable based on different types of messages,” said Tatta.

To Harrison, the “next big frontier will be for us to understand linear buy delivery at the household level and to be able to parse out effectiveness, because it’s really hard to do it right now.”

Bokor summed up what is unarguable regardless of how one tries to target and attribution television better than has been done in the past. “TV has to step up and prove that it delivers in comparison to, we talk about Google and Facebook. You want to beat them, you’ve got to be them at their own game.”

This video was produced at the Beet Retreat Miami, 2017 presented by Videology along with Alphonso and 605. For more videos from the event, please visit this page.

“I think we’ve entered …a renaissance of television,” Matt Bayer, SVP of advanced TV at Magna Global, tells Beet.TV in this video interview.

“We’ve been on a journey for a long time where now TV is (supposedly) going to be empowered with better data and technology than ever before and I think we’re on the beginning steps of that journey. But, I do think the upfront (for TV ad sales) is not going away.

“The upfront won’t die. It’s a very strong part of the way a client goes to market.”

Although ad buyers can buy specific audiences who may be watching a diverse range of content, Bayer says there will continue to be value in the process of committing upfront ad spend against a specific TV show. But he does see addressable TV reaching 100 million-home scale in the US, something which will tempt advertisers away.

This video was produced at the Beet.TV executive retreat presented by Videology with Adobe, AT&T AdWorks and Nielsen.

Bayer was interviewed on stage by moderator Ashley Swartz, CEO of Furious Corp.

You can find more videos from the Beet Retreat on this page.

“A third of the United States right now is lit up for household-addressable advertising,” according to ad group IPG’s advanced TV SVP Matt Bayer. “You can buy programatically television at nearly 100 million homes. it’s here, it’s now – it’s not 2020 talk it’s 2015 talk.

For Bayer, the value of addressability is specificity. He says he can move his advertiser clients away from targeting consumers on demography and toward something more strategic.

Still, despite the promise, very few advertisers are yet harnessing the opportunity. Bayers says only 1% to 2% of brand advertiser budget is being put in to addressable-TV ads.

Program Note:  Bayer will be featured speaker at the upcoming Beet Retreat on addressable TV advertising.

This video is part of the series Programmatic Video at a Turning Point, presented by SpotX. You can find additional videos from the series here.