P – Programmatic TV
Traditional ad slots were once bought and sold over the phone, but automated trading is increasingly the go-to. ‘Programmatic’ is an umbrella term for all ad inventory purchased via platforms such as DSPs (Demand Side Platforms). With PWC predicting that Programmatic TV will account for a third of global TV ad revenue by 2021, marketers can no longer afford to leave programmatic off the agenda. Programmatic is often referred to as addressable TV as it ensures users are exposed to tailored ads. Using sophisticated algorithms (powered by AI), brands can learn far more about consumers’ individual interests, and deliver a more targeted approach across Connected TV devices.
Q – Quantifiable Reach and Impact
In the TV advertising industry, attribution metrics are continually improving to provide marketers with more granular insight about the effectiveness of a campaign. Quantifiable refers to the ability to measure the immediate and longer-term impact of TV spots, quantifying response by day, daypart, program, network, genre, creative, audience segment – and even households.
R – Ratings
One of the most used metrics for measuring TV campaigns; rating estimates, define the size (and age demographics) of audiences viewing ad spots. It’s a traditional method for evaluating the success of ad campaigns, but ratings don’t account for middle-of-the-funnel activity and the wider engagement that TV can drive. While good for assessing audience reach, advertisers need to consider other metrics to understand overall performance.
Read more: A-Z Glossary For Good TV Marketing – Part 1
S – Second Screening
Consumers are now in the habit of using multiple devices at all times without even realizing it, with more than 70% of adults using a second device while watching TV to find out more information about a show, look up information on products featured or access social media. In each of these scenarios, second screening represents a huge opportunity for advertisers to interact with primed viewers while they are online.
T – TV Itself
In the 1950s, a television referred to a small box with a six-inch-square screen that enabled viewers to watch terrestrial programs from the comfort of their own living room. Today, TV is an entertainment multiplex that consumers can use to view an ever-increasing range of content – either live or on-demand – from various channels, record their favorite shows, surf the web, gaming, make video calls… the list goes on.
U – Upfronts
To kickstart crucial advertising sales periods, networks and major advertisers will participate in Upfronts to allocate ad spots several months before the start of the television season. In recent years, Big Data and sophisticated Analytics have aided this process by justifying the dollars spent on inventory.
V – Video On Demand (VOD)
As consumers are accustomed to watching TV when it suits them, VOD makes it possible to watch shows on-the-go (via a mobile device), at their desk (on a tablet, laptop or desktop) or when relaxing on the couch in front of a connected TV. For marketers looking to build on their Omnichannel Marketing strategy, ad-supported Video On Demand (VOD) platforms offer advertisers a new channel through which they can reach a variety of audience segments.
W – Wastage
Wasted ad impressions were once accepted as an inevitable part of TV campaigns, as linear TV was a broad-reach tool and there was simply no way of differentiating between – and then targeting – particular audience segments. However, with the level of consumer insight now available to marketers, it’s possible to eliminate wastage by identifying and targeting shows, dayparts, etc. and serving tailored content accordingly.
X – TV Is Not eXtinct
Although for some households, watching traditional television by itself is less common, the fact is, linear TV is still a major part of the overall viewing experience – globally. In the US, live or time-shifted television still has a reach of 88%, meaning that advertisers can’t afford to ignore the impact of a strong TV marketing strategy. And TV isn’t just linear – it’s VOD, SVOD, OTT, etc.
Y – Yield of TV Advertising
TV has always been a dominant force in the world of advertising, with consistently high yield (or response) rates, and although the dynamics are shifting to include a range of different channels and formats, this is only making the opportunity greater for advertisers. By determining how much inventory a buyer has access to, at what CPM and through which channels, the yield is used to measure how effective an impression is.
Z – OptimiZable Campaigns
One of the main differences between 1950s TV advertising and today’s ad campaigns is the ability to optimize a campaign to improve its effectiveness. The speed at which consumer insight is now collated, analyzed and actioned (i.e. it happens in real-time) means that ‘in-flight’ and continuous campaign optimization is becoming the norm for many advertisers.
For a “traditional” Marketing platform, TV is holding its own and even helping its digital counterpart achieve greatness. Hopefully, with this handy three-part guide, you now have the knowledge to make TV work smarter for your brand too.
Read More: A-Z Glossary For Good TV Marketing – Part 2