Today, subscription video has boomed, but the following wave of advertiser-supported VOD services is also emerging in its wake.
Preparing for an internet TV world that won’t only be about subscription, brands and technology providers convened on a panel at Advertising Week New York, moderated by eMarketer analyst Nicole Perrin, to discuss measurability, effectiveness and the future of creativity.
Shoba Subramanian – Director, Global Media & Platforms CoE at PepsiCo at PepsiCo:
“We have actually what’s called the PepsiCo Rating Point system, it’s called PRPs. We take purchase data layered on with social data, emotional data, and then we really create our own propensity model to rank now against our buyers of Doritos or Quaker or Pepsi, blue can, who’s most likely to watch which network and which show, and then we utilize that for upfront buying.”
Vinny Rinaldi – Head of Addressable Media and Technology at The Hershey Company
“Even though we’re seeing a higher cost to buy against this media, I’d rather control reach frequency because I’m actually getting a lower cost per person by doing that, even though the CPMs may seem inflated and all that. But because the planning capabilities in the entire industry are so nascent right now, how do we evolve that game?”
Tim Spengler – president, M1 US at Dentsu Aegis Network
“(The industry is) starting to bring together media and creative and using a platform in data to do dynamic creative optimization and putting it back together. I’m old enough to (remember) when it was together and then when it got pulled apart. Being part of that inevitable change in the industry is probably what I’m most excited about for next year.”
Michael Scott – Samsung Ads head of sales, brand
“I’m so excited about our Samsung TV Plus, which is a free television service that has upwards of almost 70 channels that comes a free TV with your TV. As soon as you get that smart TV, that brand new 65-inch, and you plug it in and you turn on the internet, you start having great high quality television served right to your home. So it helps compliment those cord cutters who maybe were using kind of the cable for channel surfing.”
This video was produced at the Samsung Ads Leadership Forum during Advertising Week, 2019. It is sponsored by Samsung Ads. For more videos from the event, please visit this page.
]]>Panelists debated how, thanks to technology that can observe eventual viewer outcomes like sales or clicks, and link them back to initial ad exposure, advanced TV can not only target viewers, it can provide brands with effectiveness indicators.
Michael Scott – Samsung Ads head of sales, brand
“One of the things that we’re hearing a lot is the ability to prove out the ROI.
“Whatever that key indicator might be, to show that television as a medium – sight, sound, motion, emotion and colour – really works to build brands, to move cases, to build relationships.
“You can prove it now.You bring that digital to life.”
Vinny Rinaldi – Head of Addressable Media and Technology at The Hershey Company
“Big brands live and die by an ROI number. The simplest way of effectiveness is revenue-due-to-media. In my opinion, I’d rather drive revenue as a business. The ROI is just an equation off of it.”
Tim Spengler – president, M1 US at Dentsu Aegis Network
“This just sounds like such a no brainer. Why (aren’t) people aren’t moving faster? You have those two things that are working against the change….
“Everyone starts every conversation with ‘cost and my CPMs are going to go up’.
“I just think it’s stupid. (Many brands think) that, ‘because my TV’ (advertising campaign) is ‘working’ … let me go fix something that isn’t working’.”
Shoba Subramanian – Director, Global Media & Platforms CoE at PepsiCo at PepsiCo:
Subramanian said she aims to share knowledge about the emerging platform throughout her large organization.
“I was blown away by the AVOD (advertiser-supported video-on-demand) stats. Just to see that number is quite, quite eye-opening. It’s really a matter of permeating that knowledge and empowering the brands as we continue to do so.”
This video was produced at the Samsung Ads Leadership Forum during Advertising Week, 2019. It is sponsored by Samsung Ads. For more videos from the event, please visit this page.
]]>But how quickly are brands embracing the opportunity?
In this Samsung Ads panel at Advertising Week, two major brands were asked how fast they are welcoming in addressable TV.
Moderating, eMarketer analyst Nicole Perrin referenced eMarketer’s projection that “between 7% and 10% of upfront (TV)spending would go to advanced TV buys”.
Vinny Rinaldi – Head of Addressable Media and Technology at The Hershey Company
“We’re looking towards the higher end of that number. The only way to truly grow a big brand and business is to reach new people.
We jumped right off the diving board starting this year and started testing right out of the gate. Our brands need to just find incremental reach, that’s the biggest thing. About six years ago, 97% of our total budget was in linear television. Going into 2020, that number is going to be under 50% for the first time.”
Shoba Subramanian – Director, Global Media & Platforms CoE at PepsiCo at PepsiCo:
“It’s a slow moving force for us. We started out with a few test-and-learns. we looked at the entire advertising landscape … then we had to present this out to everyone (in the company).
“We’re starting out with very small tests in market to prove out that hypothesis, that it can actually result in incrementality, you can get these new audiences you’ll never touch otherwise.”
Tim Spengler – President, M1 US at Dentsu Aegis Network
Spengler said the up-to-10% of TV spending migrating to addressable is underplaying the profound consumer shift that has already gone in that direction.
“It is too small. You got 20 plus percent of households who don’t have a linear cable box delivering content into their home. They’ve cut the cord, (or) they’re cord-nevers.
“If you don’t play in this space, you’re going to have a reach problem and you’re going to have an over frequency problem and you’re going to have a problem in knowing your customer, who has now seen the eighth ad today from your brand.”
Hershey’s Rinaldi says his company’s first addressable campaign bodes well.
“What we’re showing early on with our first advanced TV buy, is in a small testing environment, we’ve grown our reach by 5%,” he says. “Showing an old big brand that you can grow their reach by 5% in just a small testing environment, I think the sky’s the limit as we move into 2020.”
PepsiCo’s Subramanian says the landscape is complex. “The one platform I feel is a slam dunk for most brand marketers is Hulu,” she says. “I think people relate to it more comfortably as a consumer and that translates into brand decisions.”
This video was produced at the Samsung Ads Leadership Forum during Advertising Week, 2019. It is sponsored by Samsung Ads. For more videos from the event, please visit this page.
That is the view of one ad agency exec searching for technology to reduce the frequency of ads.
They key, says Tim Spengler, the president of Dentsu Aegis Network’s M1 US, is to know enough about viewers that they are not exposed to the same ad multiple times over.
“There’s too many ads, and there’s too much frequency,” Spengler says.
“(It’s a) golden age of television from a content standpoint, but probably not from a viewer experience standpoint when it comes to the ad part of it.
“They expect more than they’ve ever expected before so we got to get relevance right. We’ve got to get the right ad to the right person and know how many times that person’s seen that ad and on how many platforms.
“Consumers today expect that relevance and if they don’t get it from brands because, ‘I’ve seen that at eight times a day, three times on my iPad, twice on my TV, and four times on my phone’ … then you don’t get me.”
M1 platform was developed by the Merkle agency prior to its acquisition by Dentsu in 2016. M1 now has an identity graph that comprises 95% of U.S. adults by way of personally identifiable information codes.
This video is from a series leading up to, and covering, the Xandr Relevance Conference in Santa Barbara. This Beet.TV series is sponsored by Xandr. Please visit this page to find more videos from the series.
]]>Since gaining, keeping and growing customers involve different phases, being able to discern them leads to knowing what messaging to deliver across platforms. “Linking those two things up we think is the next phase of where the business is going,” Spengler opines in this interview with Beet.TV at CES 2019. “It’s data, but then you have to know what to say and it’s creativity.”
Powering much of this progress within Dentsu is the M1 platform developed by the Merkle agency prior to its acquisition by Dentsu in 2016. M1 now has an identity graph that comprises 95% of U.S. adults by way of personally identifiable information codes, according to Spengler.
“That gives us a tremendous ability to work with our clients to identify true targets based on all the data they would want to know about somebody,” and then to figure out “how to connect them at various end points so we can actually speak to those exact people. So it’s making media more precise and more powerful.”
Part of the process is connecting audiences with media owners. “The conversation we’re having is about audiences, it’s less about GRP’s,” Spengler says. “It’s about content and environment, because content and context will always be important. We’re coming together on that.”
Understanding the differences among audiences goes hand in hand with being able to determine how specific targets are consuming media, according to Spengler.
“You’ve got five different devices. Am I going to waste money and talk to you five different times when I only want to talk to you once? So you’ve got to really understand who you are and what device you’re on so we’re not wasting the money.”
Asked about the value that media agencies need to provide, Spengler says “It’s very complex. It used to be strategy and save me money.” Now its data, technology and creativity working together.
“It’s higher level work but that’s what our clients need and that’s what we’re trying to build ourselves to be able to deliver.”
This video is part of Beet.TV coverage of CES 2019. The series is sponsored by NBCUniversal. For more coverage, please visit this page.
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