is now part of

The traditional direct response television marketing

Traditionally, DRTV campaigns could be easily distinguished from regular TV ads by urging viewers to call certain phone numbers. Often, DRTV media buyers focused on long form infomercials late at night or early in the morning as these slots were cheap and allowed for a detailed explanation of the product. While the long form infomercial still exists, the rise of better yield management tools such as Programmatic TV for broadcasters will make it harder and harder for DRTV media buyers to negotiate good rates.

Direct response TV advertising in the era of the smartphone

DRTV marketing has always relied on viewers immediately engaging with the TV ad. Using special phone numbers with inbound call tracking allowed DRTV marketers to immediately track the success of an ad. In fact, many online advertisers have started displaying phone numbers and tracking this way of contact as well (here’s a list of inbound call trackers). But with the rise of the smartphone, viewer behavior has changed dramatically. Almost every viewer now is using a second screen device such as the smartphone or tablet in parallel to watching TV. And many of them use this device to engage with the ad by searching for more information or visiting an advertiser’s website. While displaying a special phone number or coupon code in the DRTV ad made tracking easy, viewer engagement via search or direct hits on the website is technologically more challenging. However, the possibility for the viewer to immediately engage has become easier than ever. These micro moments are basically just a tap away.

The new way of direct response TV advertising

DRTV marketers should take full advantage of the changing viewer behavior by embracing new technologies out there.
1. Set up TV Analytics for the advertiser to track the impact of each ad on website traffic, conversions, and app downloads.
2. Make sure the website prominently displays the product/service offered in the TV ad. Optimizing the conversion funnel this way leads to 3-4x more conversions. Your DRTV marketing campaign can either achieve this through a special URL in the ad, directly leading to the right landing page, or through TV Sync technology, synchronizing website and TV ad.
3. Revise your DRTV media buying strategy. The rise of Programmatic TV advertising will result in more granular automated buys based on data. What used to be a manual task (comparing call logs and TV slot rates/prices) will become more and more automated. The intelligence and value add for the advertising client will lie in setting the right goal, capturing the right data and actively managing the Programmatic TV buying for your DRTV campaign.

 

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How TV campaign tracking works

The product: TV Analytics Dashboard

Programmatic TV: How it works, the players & the right strategies

Overview:

 

Today, 84% of TV of smartphone and tablet owners use their mobile devices as Second Screen while watching TV and 27% look up product information online after watching a TV ad. As a general rule of thumb 90% of website visits happen in a 3 minute window after a TV ad’s airing, resulting in huge peaks in website traffic and allowing TV Analytics an exact measurement of each individual TV ad airing.

What is measured?

TV Analytics measures the direct effect of a TV ad’s airing on the advertiser’s website KPIs. By looking at the visible uplifts in visits and conversions, advertisers can analyze how much they pay for a conversion and what time, day, spot and TV channel work best. Thereby, they learn where they can get the maximum out of their budget.

How does TV Analytics work?

tv-campaign-tracking-infographic-wywyThe basis for the TV campaign tracking is an analytics tool that properly attributes the TV traffic to the website KPIs. For the analysis, the TV-inspired uplift of website visits is measured by looking at the overall traffic and then subtracting the baseline traffic. The baseline represents the “regular” website visits that happen X minutes prior to the TV ad’s airing. The traffic uplift shows the TV ad’s impact on website visits.

What is important in selecting an analytics tool?

The basis for any analysis is the underlying data. If your data is incorrect, you get misleading results at best, wrong results at worst. Check the tool for:

Accurate airing times:
Knowing the exact airing time of a TV ad is essential, as it allows the advertiser to determine the correct attribution window for the TV airing. Only by distinguishing the airing times, advertisers can see whether the visit or conversion uplift was caused by a TV ad or e.g. another advertising channel. Airing times can be collected by:

  1. Looking at the booked airing times in the schedule. This method delivers mediocre results at best as planned and actual airing times vary on average by at least 5 minutes. With shorter attribution windows (e.g. 3 minutes), the large variation in airing times become a problem.
  2. Receiving them from the TV channels several weeks after the TV ad’s airing. This method delivers accurate results with the drawback of having to wait weeks for results. As it becomes necessary to reprocess the web traffic data for the analysis and many web analytics tools (such as Google Analytics) do not offer this, specialized cross channel attribution tools (offering TV attribution as part of their package) come into play.
  3. Using a TV Sync-technology that recognizes the TV ad’s airing in real-time and sends the data to an analytics tool automatically. This allows to process the data directly, thereby getting immediate insights. Existing web analytics tools (such as Google Analytics or Adobe Analytics) can incorporate the data with some manual work involved, specialized TV Analytics tools have predefined reports readily available.

Accurate attribution:
Sophisticated algorithms are the basis for measurement with superior accuracy.
The algorithms calculate:

TV-Analytics-wywy-Sophisticated-Attribution-Algorithm

This superior accuracy is important, as:

  • A separate calculation of attribution times secures that TV-inspired website visits are not cut off, when the attribution time of one ad is longer than the other. E.g. the website of the product being promoted in the first place of a TV commercial break usually gets more visits than the one being promoted last – just seconds before the exciting movie casts its spell over us again.
  • A separate baseline calculation per TV ad is important to analyze the exact impact of each ad, as website visits for example are usually higher in the evening than in the morning.

Channel Coverage:
The measurement should cover all relevant TV channels where the TV ad airs, so you receive the complete results of your TV campaign analysis.

How can I optimize my TV ad ROI?

There are several different ways (which can be combined) to get the most out of your campaign:

 

Watch our webinar on TV Anayltics:

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More information:
tv-attribution-wywyTV Attribution: The 5 things you need to know

TV Analytics study: Audibene identifies TV plan’s optimization potential

White paper: How TV Attribution works

Video training: TV attribution made easy


The product: TV Analytics Dashboard

Overview:

 

TV advertising today focuses around trying to reach your target demographic based on TV panel data of a few thousand households. The ad currency for that is the gross rating point (GRP) – a maximum GRP at a given budget being the aim for a TV campaign. TV planners identify the shows with the highest GRP for a set target demographic based on historical viewing data and then book the shows with the best price/cost ratio, maximizing the GRP for the planned campaign.

Programmatic TV is set to change this in two ways: First, Programmatic TV puts a layer on top of today’s TV trafficking and booking system, allowing to automate the buy, minimizing the need to manually touch bookings and thereby decreasing booking costs. Second, Programmatic TV goes for a data-driven approach beyond standard target demographics. Instead of using a few thousand TV panel households, it leverages set-top box data of millions of households, allowing more granular targeting. In addition, this data is married with other household data, e.g. allowing to identify viewers who are interested in buying a new car. The difference to Programmatic Digital is that automated buy does not happen in real-time but with a minimum one week lead-time.
 

Programmatic TV advertising market size

The total TV advertising market size is about $200 billion worldwide, accounting for about 40% of all ad spending. IDC expects Programmatic TV ad spend to be around $17.3 billion worldwide by 2019. For the US, the overall TV market size currently is about $70 billion, with Magna Global estimating $10 billion for Programmativ TV advertising by 2019. This essentially means two things:

First, Programmatic linear TV spend will be the same size as the entire online video spending combined.

Second, with well below 10% of total TV spending worldwide and 17% in the US, it still has potential for massive growth. With programmatic online spending breaking through the 50% market share in 2015, it may well be that the IDC and Magna Global numbers turn out to be rather conservative estimates.

 

The Programmatic TV players

There are roughly five categories of players (make sure to check out Tubemogul’s Programmatic TV landscape chart (US focused) as well):

  1. The TV advertisers / media agencies who book campaigns.
  2. The demand side platforms (DSP) who act as programmatic buying platforms (e.g. Tubemogul, TheTradeDesk, Videology…), mainly fulfilling two functions: Marrying data from DMPs (see below) with the available inventory and then executing the buy in an automated way.
  3. The sell or supply side platforms (SSP) who act as programmatic selling platforms (e.g. Wideorbit, AudienceXpress, Clypd, Placemedia, Videa…). These platforms integrate into legacy TV systems for each network to make the automated buy technically possible.
  4. The data management platforms (DMP) such as Rentrak, who layer audience data, engagement metrics, purchase data or other sources on top of the TV program to allow smart buying decisions.
  5. The publishers / TV networks who supply the inventory.

Most prominent Programmatic TV players (Wideorbit survey 2016)
programmatic-tv-emarketer

 

 

 

 

 

 

 

 

 

 

 

 

Source: emarketer

 

Open auction vs. private marketplace

With programmatic online starting as an open auction market where anyone could bid for the inventory, one of the fears for the nascent programmatic TV market is that the auction model will become a race to the bottom in terms of pricing similar to what happened online. While there are many arguments against this happening (TV having limited inventory to begin with), many TV networks are moving slow on the auction model and instead setting up sales deals via private marketplaces directly, similar to what is increasingly happening in the online programmatic world. As these deals are negotiated directly between the buyer (agency) and the seller (TV network), it allows tighter controls on pricing while keeping the other advantages of programmatic TV in place (automation of the buy, data enrichment etc.). That said, Programmatic TV is not about getting cheaper inventory. It’s about getting the right inventory for the advertiser, thereby optimizing the buy and getting more out of a given campaign budget.

 

Programmatic TV vs. Addressable TV

Whereas Programmatic TV in general works on top of the current linear TV slot, Addressable TV allows to insert ads on the household level through special set-top boxes, targeting individual households (more information here). Currently Addressable TV can target about 25-30% of US households, as it requires newer set-top box models. As Programmatic TV is about (1) automation and (2) advanced targeting through data, Addressable TV in wywy’s opinion is a subsection of Programmatic TV, fully leveraging the targeting options down to the household level.

 

The right Programmatic TV buying strategy for TV advertisers

Programmatic TV first of all requires a change in mindset. As TV advertising has been handled the same way for the last 60 years, changing this way needs to be a conscious choice, driven by both the advertiser and the agency. The advantage of Programmatic TV buying lies in using the newly available data part and then leveraging the automation part to do a more granular and continuously optimizing buy. If GRP is your metric of choice, the advantage of Programmatic TV buying is very limited. The most important benefit is better audience targeting, according to a recent poll by Wideorbit:

emarketer-programmatic-tv-benefits

 

 

 

 

 

 

 

 

 

 

 

 

 
Source: emarketer

As Programmatic TV allows you to define success metrics beyond the GRP, the initial step is to decide which success metric is the right one for the particular TV campaign you are planning: Is it a reaching a very specific target audience, driving social chatter, or maximizing purchases ? Choosing a new success metric also means letting the old success metric go. While you can report on several metrics simultaneously, you can only maximize one metric at a time.

As the TV budget often is the major part of an advertising budget, an appropriate entry point could be to start tracking the additional metrics and reporting them alongside the GRP. This allows the advertiser to get a fuller picture of the TV campaign, helping make it more accountable and gaining a better understanding of the value compared to digital campaigns (where almost everything is tracked).

 

Demographic Buying, Index-based Buying, Engagement-based Buying

Traditionally, TV campaigns are planned around a demographic target group using the GRP and then inventory is bought by trying to maximize the GRP with a given budget, or reach a target GRP with the minimum ad spend needed. With the introduction of data metrics beyond demographics, more and more campaigns are using different success metrics such as secondary guarantees or engagement metrics:

programmatic-tv-buying-strategies

(Traditional) Demographic buying
Most campaigns are planned and bought on gender & age demographics, based on the Nielsen TV panel. Once the target demographic is defined, the programs with the highest reach and the best price within that target demographic will be bought. TV’s unparalleled reach helps to positively influence the advertiser’s brand.

Index-based buying
The traditional approach has limitations as it relies heavily on Nielsen’s TV panel with a couple of thousand households and partially outdated technology, such as keeping physical TV viewing diaries.
New set-top boxes allow to capture the viewing habits of millions of households in granular detail. Combining this massive set of viewer data with other available data sources allows to build detailed viewer profiles at a very granular level, going way beyond the traditional gender & age demographics. Household income, family status, hobbies, food preferences etc. can be used to better define and reach the desired target audience. Instead of ranking the TV program based on the gross rating point, the new index-based buying approach ranks the TV program based on the chosen targeting metrics for each individual campaign. So while a show might have a low “traditional” rating, it might have a high index value and therefore be bought based on the new targeting metric. One caveat remains: If the network agrees to a guaranteed index-based audience, it will require both advertisers and networks to agree on a standard for the used targeting data.

Engagement-based buying
The rise of the “always on” culture has lead to almost all viewers watching TV and using their smartphone or tablet as a second screen in parallel. This change in viewing habits results in many viewers engaging with TV ads immediately following the airing, blurring the traditional boundaries between brand and direct-response TV advertising. More and more TV advertisers are starting to measure the impact of their TV advertising on their online channels. These impact metrics can be used to rank the TV program based on people who are highly interested and most likely to engage. The advantage of this approach is that there is no need to predefine the audience as the viewers’ engagement is the relevant optimization metric. However, as engagement comes first, the challenge is to combine this with the advantage of TV’s broad reach for branding to less interested viewers.

 

While Programmatic TV is still a nascent technology, many “digital first” players are already moving into this market. Coming from the digital world, they are used to and expect more accountable metrics, allowing them to make efficient buys. Using available data allows them to continuously optimize on a “channel” that has unparalleled massive reach and no viewability or fraud issues.

Recommended further reading:

 

If you are interested in a Programmatic TV campaign, contact:
tobias-schmidt-120x120
Tobias Schmidt

 

More information:
How Programmatic TV is changing the ad currency

TV-Analytics-wywy-website-visits

Product info: Programmatic TV

1. TV attribution works

TV ads drive website traffic. Obviously, not everyone watching your ad will immediately visit your website. But the numbers speak for themselves: 37% of viewers have researched a product they saw in a TV commercial online, 31% have visited a product’s website after watching a TV ad. At wywy, we regularly see huge uplifts in paid search, organic search and direct website traffic immediately following a TV ad’s airing.

 

2. TV attribution is only as good as underlying data and model

As a marketer, you need to pay attention to the details to get meaningful results. There are two things you need to consider:

First, only work with real-time TV ad detections or post-airing data logs. Media schedules are not accurate enough as 80% of TV-inspired visits happen with 90 seconds of the airing (for app downloads it takes a bit longer) – a slight change between the actual airing and the scheduled airing will give you misleading results otherwise.

Second, you need a specialized TV attribution model. Ask your vendor about variable baseline and attribution window calculation and overlapping TV spot handling. If the model does not take these into account, the results will be misleading at best.

 

3. Interpreting results

As a marketer you have the option to use your existing tools (e.g. by integrating the TV airing data into your web analytics tool) or to use dedicated TV attribution tools. While the existing tools are usually cheaper, faster to set up and easier to use (because you already know them), they also require in-house knowledge to do the analysis and to interpret the results. Dedicated TV attribution tools do the analysis automatically and help you with the interpretation.

At wywy, we often see clients choosing the first option for cost and timing reasons but then unfortunately failing at the analysis as there is no in-house knowledge to do the proper analysis. Ask yourself: Who is going to do the analysis and interpretation?

 

4. Can you act?

The ultimate goal of TV attribution is to optimize your TV spendings. You need to be ready to act upon your analysis. Do not book the entire budget at once as changing it might be impossible. Rather, split it up into several smaller budgets. Have different TV creatives ready to see which one performs best. Do your analysis while the campaign is running, then shift the next part of the budget towards better performing day parts, channels, creatives. While this booking process today is still a manual job, programmatic TV will help you automate the TV buy in the future.

 

5. Direct attribution vs. overall attribution

TV advertising has a directly measurable effect on your website traffic but there are also two other effects you need to be aware of:

For one, there will be spill-over effects on all other marketing channels. For example TV ads drive search traffic which positively affects your paid search, organic search and affiliate marketing channels. If you do not account for TV and look at each channel separately, you might find that your paid search marketing is working exceptionally well but in fact that might only be driven by your TV ads.

Second, TV advertising also has a long-term branding impact. As more and more people know and trust your brand, they will choose your product or service directly, tell their friends about it etc. While this effect is hard to measure, we have seen large differences in direct traffic before and after a TV campaign with our clients.

Marketing attribution solutions help you include TV into your marketing mix with partial attribution across all channels.

 

TV attribution case studies

Check out our TV Analytics case studies to understand how other companies use TV attribution.

For further information, we recommend our in-depth white paper on TV attribution:

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More information:

How TV campaign tracking works

The product: TV Analytics Dashboard

Programmatic TV: How it works, the players & the right strategies

Today’s TV ad buy relies on Nielsen’s TV ratings in the US, an independent third-party and industry-accepted metric serving as the currency between buyers (advertisers) and sellers (broadcasters). Although there have been many discussions whether TV ratings are correct, whether there are more accurate ratings out there etc., fact is that the industry players do not really want any change. An agreed upon single currency simplifies everything, even if might not be state of the art after being “invented” in 1950. The upfronts nowadays determine a lot of the TV ad spend for the year, buyers getting discounts in return for spending commitments. The different TV campaigns will then be allocated to best fit the target group within the given spending commitment constraint. From a single campaign perspective not the ideal way of allocating spendings, but from an industry perspective more income security in return for discounts makes sense.

The rise of Programmatic TV: Bye, Nielsen currency.
Enter Programmatic TV. No upfront deals, rather instant booking. Unfortunately no bulk discounts (today) but a technology allowing to automatically optimize target audiences and thereby getting more out of a single given campaign budget. A great tool for advertisers who don’t enjoy the bulk discounts due to large “booking quantities”.

But this is only the beginning. Programmatic TV allows advertisers to define their own success metrics for optimization. Currently the focus is still on the “old” currency target audience. What, if this target audience metric becomes obsolete? Advertisers used to book in the Vogue magazine or on vogue.com because they wanted to target fashion-interested women. With the rise of programmatic online advertising the attention switched away from the website towards the user – advertisers want to engage with interested users, not with a particular surrounding. They can do that because online advertising allows to track the performance of the ad. So why should a TV advertiser not book TV slots which trigger the most social comments on Twitter and Facebook? Why should a TV advertiser not book TV slots which results in the most website visits? Or mobile app downloads? Or even offline store purchases?

500+ million spendings: Hard to ignore
This year’s superbowl saw three mobile app gaming companies promoting their products. Suddenly, entirely new players pour hundreds of millions into the TV ad industry with the clear goal to get viewers to download their game. And it works really well. But they do not care if the game is played by a 23 year old college student or 45 year old office worker. Forget about brand building (which cool other game from Zynga did you play after Farmville?), they care about downloads but have to pay in “target audience” currency. This will change soon, the first step being the “translation” of the current currency into the cost-per-download currency through TV attribution. Appsflyer, a mobile app install tracking company recently announced its industry-first TV attribution tool. The next step will be to use this information instantaneously to buy TV slots on cost-per-download level. And that’s when Programmatic TV will explode, when TV advertisers define their own success metrics on a campaign basis with immediately visible results.

Welcome to the new world of Programmatic TV advertising.

Your contact:
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Tobias Schmidt

 

More information:

Programmatic TV: How it works, the players & the right strategies

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Product info: Programmatic TV