What does the future of TV advertising hold? How
about in two years? In five years? Ten?
“The future of advertising will be based on perfor-
mance and the ability of a medium to most accurately
identify, deliver, and track a target audience for an
advertiser,” says Richard Stacey, president and CEO
of Toronto-based Northern Response Intl. Ltd. “To-
day’s TV technology can’t do any of these things very
efficiently. TV will likely always have a place in the
marketer’s tool box but — in most cases — just an
increasingly shrinking place.”
Suffice it to say, Stacey’s opinion has supporters
and naysayers alike. The debate about the effective-
ness of TV in today’s marketing climate is surpassed
only by the debate about TV’s place in the future.
Read on to find out what Stacey and other members
of the Response Advisory Board have to say about the
future of TV advertising.
How are you or your clients using TV
Everywhere marketing opportunities,
such as addressability? What
opportunities does the ongoing shift
in video consumption create for
Abed Abusaleh, Havas Edge: Marketers are using it as an
extension of linear TV, or as a way to hone in on the
end user that fits their target demographic.
Tony Besasie, Cannella Media: Depending on who you
talk to, TV Everywhere and addressability can cover
different areas. From a carrier’s perspective, TV
Everywhere enables subscribers to watch their favorite
channels on any device in or away from home — so
it helps retain reach for those network buys. Addressability is targeting specific subscriber households based
on specific characteristics.
We think addressability and performance-based
marketing may drive better media efficiency for the
right type of client. For example, if we are placing
media for a product targeting expecting mothers, we
may find addressability to be more affordable than
a national campaign that has significant spillover.
However, if the national campaign is bought at lower
DR rates that deliver the same media efficiency ratio
(MER), then we would still opt for the national and
spillover for the brand awareness factor.
Peter Feinstein, Higher Power Media: We’re not acting
rashly, nor irrationally. Instead we’re testing, testing,
testing. Thus far, the jury is decidedly out on addressability. Our experience demonstrates that the pricing
premium and lack of scale make client ROIs an insurmountable challenge for addressable TV. We prefer
using well-sourced data, and applying it against larger-scale, more linear-oriented media. Our methodology
works, whereas addressable TV hasn’t yet proven itself
a winning investment.
I’m sure that addressable TV sounds magically
appealing to those who have mostly digital media experience, as well it should for all the pitfalls of digital.
But for those of us who’ve been successfully leveraging
TV for decades, addressable TV isn’t the holy grail,
nor even necessarily a gift. It actually labels those
people falling outside of a digitally-driven algorithm’s
parameters as “waste” when — in fact — the way TV
works, those “wasted” viewers may be the only thing
that stands between the client and a positive ROI.
Doug Garnett, Atomic Direct: Clients aren’t yet seeing
impact from TV Everywhere. While it’s captivated
many industry watchers, it will take time to develop
into a real truth. At this point, some clients are dab-
bling in the alternatives to traditional TV in order to
learn about the other options. But that’s about it.
Eventually, traditional advertisers will come to un-
derstand TV Everywhere better. At that point, a large
BY THOMAS HAIRE
www.responsemagazine.com RESPONSE MARCH 2018 39
From TV Everywhere and addressable advertising to the consolidation of media ownership and content investments by virtual multichannel video program- ming distributors (vMVPDs) like Netflix and Amazon, the landscape of the television and video advertising industry is undergoing constant change.
Meanwhile, the expansion of marketer spending across all facets of digital advertising
continues to undercut budgets for TV campaigns. Still, TV remains the only outlet that
provides massive scale for new marketers and established brands alike.