TV, long the bedrock of the advertising industry, is in transition. Households are cutting the cord in record numbers, opting for more affordable over-the-top video services like Netflix and Hulu. Most significantly, for the first time ever, advertisers spent more on digital channels than traditional TV in 2017. While it seems like doom and gloom for TV, the golden era of TV is far from over. With a number of long-overdue innovations taking shape, TV’s future as an advertising medium is arguably more exciting than ever.
Data-driven TV targeting is one such emerging opportunity, offering advertisers the ability to expand targeting beyond the traditional age and gender demographics that have defined this medium. It unlocks the ability for advertisers to reach specific audiences who watch pay TV content (i.e. subscription-based cable, satellite, or telco services).
Closed-Loop Measurement for Linear TV
Savvy brands are already taking advantage of data-driven TV advertising to optimize campaign lift and ROI. How do they get positive, quantifiable business outcomes? It starts with an investment in closed-loop measurement services; two such examples are detailed below. In addition, to measure the incremental lift in sales for these pay TV campaigns, advertisers and their partners must follow a “test and control” methodology to evaluate the effect of campaign exposure vs unexposed audiences.
Furthermore, the level of analysis in these examples is impossible without processing, linking, and integrating multiple data sources. In these cases, Acxiom brought together several data sets, including national as-run linear TV ad logs, TV viewership data from set-top box data partners, and CRM transaction data from the advertiser to generate post-campaign reach/frequency and conversion lift reports. If CRM data is unavailable, then third-party transaction data or geo-location data from partners can also be used to represent priority campaign outcomes.
Here are two brands seeing strong results with linear TV advertising campaigns.
Success Story No. 1: Brick and Mortar Retailer
Campaign goal: Quantify the impact of a national TV advertising campaign on driving in-store traffic.
Measurement approach: Acxiom worked with a geo-location partner to access data from all the devices that visited targeted retail store locations during the campaign. Acxiom analyzed this data against TV viewership data to assess campaign lift.
Ads: Campaign ads reached 49 percent of the pay TV universe.
Results: People exposed to the campaign visited stores 37 percent more often and spent 47 percent more time in-store. Customers skewed affluent, typified by married adults ages 34-56 with children.
Success Story No. 2: Theme Park and Resort
Campaign goal: Determine the impact of advertising on family/kids TV networks on driving resort bookings.
Measurement approach: Acxiom used the national TV schedule to generate campaign ad impressions with a TV viewership data partner, then linked this data to the advertiser’s transaction CRM data to evaluate incremental campaign lift.
Ads: Campaign ads reached 26 percent of the pay TV universe.
Results: The campaign drove 47 percent more bookings which equated to 38,462 incremental bookings. Households exposed to the campaign were more likely to book multi-night stays, and customers skewed toward affluent, career-oriented families with young kids.
In both campaigns, advertisers were able to better understand and quantify the impact of their linear TV investment to achieve their objectives. Both can now double down on areas of TV most effective in reaching households that best match their target audience. As these success stories demonstrate, this is not an advertising optimization opportunity to pursue at a later date – brands are already achieving success with data-driven TV solutions now.
Download our new eBook to learn more actionable steps to improve omnichannel measurement across digital and offline media. And, to learn about IdentityLink for Television, check out our recent press release.