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TV networks race into data-based ad sales
Michael Beach
April 09, 2018
Advanced TV ad spending (% of total):
1) 2015 — $720M (1%)
2) 2016 — $1.5B (2%)
3) 2017 — $3.4B (5%)
4) 2018 — $6.7B (9%)
What is advanced TV? Advanced TV is the optimization of traditional linear TV ad buying against customer data (CRM, etc.) versus traditional age/gender demographics.
Quote from Omar Sheikh — Analyst @ Credit Suisse:“Investors continue to regard U.S TV advertising as a structurally declining business, driven by erosion in viewing and competition from the growing reach of digital platforms,” Sheikh said. “In our view, if the TV industry can combine its reach with greater relevance by using technology to improve targeting, the medium will be well-placed to grow its share of the marketing mix over time. This will particularly be driven by below-the-line items, including direct mail and telephone marketing, which account for more than $100 billion of spend today.”
Recent big announcements in the advanced TV space:
1) LiveRamp rolled out their advanced TV platform with partners such as iSpot.tv and Cross Screen Media.
2) Tru Optik and TiVo announced a deal that will combine 2Mhouseholds worth of linear TV viewing data from TiVo w/ Tru Optik’s OTT data platform.
Quote from Andre Swanston — CEO of Tru Optik:“Most TV viewing homes in America are now cord-shavers, meaning they consume both traditional linear TV, well as connected TV… So being able to retarget households on CTV that watched your content or competitive content on linear can be a powerful tool. Also, reaching homes on CTV that were exposed to your ads on linear or a competitor’s ads, allows for reinforcing your brand message or countering a competitor’s message across the largest, most influential screen in the household.”
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