amount of time will open up for low-cost purchase — which is
always to the benefit of performance marketers.
The one threat to this time opening up is that it may become
available only through programmatic — which I believe networks will use to attempt to raise DR rates. Programmatic will
be a middle-priced tier of TV advertising. How much performance marketers will benefit from TV Everywhere will depend
on whether true remnant time becomes available.
Peter Koeppel, Koeppel Direct: Addressability allows us to get
very granular in terms of reaching potential prospects, but we
have to meet them wherever it is that they are turning to learn
more about our advertised products and services. With viewers
watching TV with their smartphones and other devices, we are
making sure that — when a TV spot runs and viewers jump on
their second screens to discover more — that we are there to
provide that education. That way we can push them down our
clients’ sales funnels versus serving them up to go online and be
co-opted by a competitor.
Fern Lee, THOR Associates: Brands are using
TV Everywhere marketing opportunities,
such as addressability, to be more specific
in delivery to segmentation specific goals.
The idea of delivering different ads to
different households within the same programming schedule is a strong marketing
tactic. The tenet is to be able to attribute
conversion based on these consumers, as
well as capture their data for retargeting
and future marketing. These ads are very
costly, as only 13 percent of all households
have addressable capabilities, and the
technology varies with different operators,
contributing to standardization issues.
Richard Stacey, Northern Response Intl. Ltd.: Video has always been
an integral part of our marketing. As new media opportunities
have evolved, we have followed with video whenever the technology has allowed. Once Amazon is more fully able to enable
video, it will be a game changer for many marketers. With the
proliferation of video and user-generated content, we’ve also
found the acceptable production level has been reduced —
which has meant that we can produce video more quickly and
cheaply than before.
As major media ownership groups continue to
consolidate, how will that impact availability
and pricing for performance-based marketers?
How will it affect combined offline/online
planning with those groups?
Abusaleh: As these groups continue to consolidate, and sales
groups find themselves with more inventory and new non-linear
offerings to sell, there could be more packaging and bundling of
the inventory being sold, which would then favor clients with
larger budgets and broader audiences.
Besasie: The hope is these mergers strengthen the legacy TV
base to enable them to compete more effectively against the
new programming coming from Amazon, Netflix, and Hulu.
Feinstein: We haven’t seen a huge shift. Much of what we
project is going to be dependent on how the entities that are
left choose to sell their inventory. Bundling platforms for sale
in packages will likely reduce some of the available inventory
we’ve traditionally been able to secure at reasonable CPMs, but
there will always be options and opportunities for us to establish
win-win situations for both our media partners and our clients.
Garnett: With every new deal, the newly combined networks at-
tempt to demand a premium. And then, that premium quickly
disappears because there isn’t an increase
in effectiveness for advertisers — merg-
ers deliver other values to the companies
merged but not in effectiveness for adver-
tisers. So, I expect no value from com-
bined offline/online planning. Networks
have spent years presenting “deals” that
combine offline and online buys. I have
yet to see one that was worth enough
value to even consider seriously.
Koeppel: More consolidation means there
is more money to fund more programming,
which ultimately creates more inventory
and more audience fragmentation. That
creates a situation ripe for performance-
based marketing because as audiences
become more micro, they may not be as
appealing to traditional advertisers owing to their lack of scale.
For direct response, the proof is in an ad’s ability to deliver an
ROI based upon flexible pricing, regardless of audience size.
Lee: The consolidation of media entities will take time and effort before pricing will be impacted, which will be modulated
by supply and demand. Of greater concern, will be the effect
of people power. Performance-based marketers have relied on
relationships, which will be severely affected by the merging of
these corporate entities. Integration, innovation, and creative
strategies will be needed in partnership with media entities to
deliver breakthrough campaigns.
What does the investment in content by
the likes of Netflix, Alphabet, Amazon, and
others portend for traditional television — and
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