LAS VEGAS \u2013 To Simulmedia, which has about a decade head start in optimizing linear television ad targeting, it\u2019s a good sign that large network groups have decided to adopt data-optimized, audience-based campaigns. \u201cIt\u2019s critical to get their adoption to move a market because the TV ad market is one where demand exceeds supply,\u201d says Dave Morgan, the company\u2019s CEO and Founder.<\/p>\n
\u201cUnless the TV companies are selling it, no one can buy it,\u201d Morgan says in this interview with Beet.TV at CES 2018<\/a>. \u201cHaving their recognition that this is a way to deliver better value for the marketers and make more money themselves has been a really big step.\u201d<\/p>\n In the \u201cold days\u201d of TV, a $3 million, three-week linear TV ad campaign might have involved buys on 10 networks and 110 spots. \u201cBut now that everything is fragmented, you really need to do it more precisely<\/a>. So for us, that same campaign might be 70 networks and 3,000 spots.\u201d<\/p>\n Post-campaign analysis used to take a month following the campaign\u2019s end. Now it can be delivered in one day, showing not just gross rating points and demographics but how much of the advertiser\u2019s target audience was reached. Simulmedia matches those data to the advertisers\u2019 first-party purchase data at the household level. Therein lies the challenge of the future for traditional advertising and media agencies.<\/p>\n \u201cThe agencies just are not structured or staffed to be able to execute campaigns at that level,\u201d says Morgan. \u201cYou need a lot of software automation, which we have, you need a lot of predicative analytics, which we\u2019ve built\u201d to traffic the creative and provide daily reporting.<\/p>\n Simulmedia counts among its clients Choice Hotels, Clorox, Expedia and Home Depot.<\/p>\n The company is still \u201cvery, very focused\u201d on linear TV and the biggest reason is \u201cthat\u2019s where the money is. Number two, that\u2019s where the under-optimized opportunity is.\u201d<\/p>\n Morgan sees the need for more collaboration among industry players given the growing importance of cross-screen TV viewing. He cites the example of Simulmedia\u2019s partnership with Facebook.<\/p>\n \u201cIf you\u2019re running a retargeting, campaign it\u2019s natural for you to want to understand what people are likely to get a TV ad in the same day or two. So that you can make sure that you can maximize the proximity and time and to person in the delivery of those two messages.\u201d<\/p>\n While the definition of TV is bound to keep changing, Morgan believes one thing that\u2019s certain is the importance of viewing on large screens. \u201cMaybe it\u2019s not going to be the same hardware device but the large-screen format is going to continue to be really powerful,\u201d says Morgan.<\/p>\n This video was produced by Beet.TV in Las Vegas at CES 2018.\u00a0 \u00a0Please visit this page<\/a> for more coverage.\u00a0<\/em><\/p>\n