The future of TV is customizable, which means one-to-one marketing is targeting the device, not just connected TV inventory but inventory as well.
But addressable TV is still a bit of a bargain, which the industry addressed at Paramount’s Addressable Now conference in New York City on Tuesday.
Portable TV sounds good in theory.
When agency clients finally try it, they’re generally happy with how their campaigns can be customized, said Jen Soch, managing director of channel solutions at GroupM.
“Every client I can sell can stay in love [addressable],” said Soch. Those clients have seen a big change in the impact of their social media campaigns, he added.
But challenges at scale, from data interoperability and good old-fashioned territory and resistance to change, are hindering the rise of customizable TV.
Trained on age and gender demos and daytime shopping, linear marketers are reluctant to buy TV media the same way they buy digital.
Mobile TV can only scale if one of two things happens: Linear TV dies, or TV moves to impact-based measurement, said Tracey Scheppach, CEO of agency Matter More Media, who also spoke at the conference. .
And the first one won’t happen, Scheppach added.
Meaning, it’s time for television to join the digital marketing and broadcast world in moving to influence-based shopping.
Easier said than done, though.
Growth is not linear
Portable TV is about targeting ads to each device, not people.
Conversations about buying television media are moving from day to day, says GroupM’s Soch.
But the biggest hurdle in bringing mainstream consumers to fixable TV is convincing them to think beyond age and gender demographics, Scheppach said.
For many traditional consumers, the logical stepping stone to configurable television is data line (DDL). DDL is more advanced than traditional linear buying because it uses more audience data in the media planning process, but it’s still not optimized.
Finding more vendor demand for DDL is where agencies have a lot of work to do, he added.
Just as connected TV platforms have marketed themselves as providing “extended” access to the edge, interactive TV is positioning itself as an addition to the lineup.
Customers don’t have to drop the line. But they can increase reach and scale by introducing buying based on TV campaigns, said Matthew Van Houten, SVP of marketing at DirecTV, at Tuesday’s event.
He cited an advertising sponsor that ran on DISH, DirecTV and Ampersand using the original audience segment, which he followed up with a digital retargeting campaign to measure additional reach and increase distribution. Compared to the national campaign alone, the retargeting campaign achieved an 87% increase in audience and a 22% increase in sales, Van Houten said.
Or, a connected TV and a wired address can work together. Then, the data can inform the reach of the narrow audience on the broadcast channels for a higher yield, said Christopher Monteferrante, VP of program partnerships and senior marketing at Spectrum Reach.
“Digital [streaming] it’s a new thing in the advertising industry,” he said, but customers are looking for additional growth. If the address line does not exist [a buyer’s] mixed media, they are missing a huge opportunity to expand their reach,” Monteferrante said.
While smart TV is struggling to gain consumer acceptance, its biggest hurdle is not platform scale, but data interoperability. (Or, well, the lack of it.)
Publishers and programmers have historically been reluctant to share first-party data rather than with partners because they see it as a competitive advantage. This leaves data locked out of gardens, even if those gardens are “walled off,” said Carol Hinnant, Comscore’s chief revenue officer.
The lack of data interoperability is the biggest problem in television, Hinnant said, “and it does a lot of damage to television that can be fixed.”
CTV’s customers aren’t the only ones demanding more data transparency in their media purchases. Ratings providers also note a lack of data confidence as a factor contributing to queuing customers stepping out of their demo-based comfort zones.