Impression-Based TV Buying Is the Way Forward in Today's Media Landscape
Countless articles, white papers and industry panels have expounded on TV’s future ad-nauseum. So, let’s hit the pause button. Marketers know what the future of TV looks like, as the future is already here.
The TV landscape is now dominated by streamers. Nowadays, audiences are consuming TV content across a different set of platforms, leading to data-driven planning and buying, with addressable targeting.
Here are four keyways’ advertisers can make their ad dollars go further in the forever-changed media landscape.
1. Make addressable work harder
When it comes to addressable planning and buying, there’s no “one size fits all.” Addressable targeting has evolved to offer a range of use cases that can be curated to meet campaign goals. For example, broad demo targeting focuses on reaching large demographic segments at a national scale.
With 1:1 retargeting, we drive brand visibility and reach extensions, connecting households that were missed, whereas hyper-focused addressable targeting helps advertisers reach exact targets with zero wasted impressions.
2. Lean into first party data
First-party data has become incredibly important in achieving audience attribution in a privacy-forward way. Collaborating with partners that lean on first-party data gives opportunity to brands to cater to new audiences and drive impact.
3. Build a strategy that includes CTV and linear addressable
CTV has gone from a “nice to have” to an indispensable buy in any effective TV media plan for achieving maximum reach and frequency. CTV’s advertising impact is only growing, and it’s important for brands to take a note of it.
According to the IAB, 37% of increased CTV spending is being reallocated from linear TV, and nearly two-thirds (65%) of buyers consider CTV a “must-buy.” Programmatic pipes are making CTV buying more efficient than ever before, and brands are heavily investing: Programmatic CTV will sustain its double-digit ad spend growth this year.
4. Shift toward impression-based buying
Reflecting the growing importance and value of impression-based TV, DISH Media recently announced a monumental step in this direction with the launch of DISH Connected, which allows advertisers to access DISH and Sling TV’s CTV inventory in a biddable programmatic capacity.
We can see a shift in the TV landscape hence, an evolved approach is needed to ensure best possible outcomes. If you’re asking, “Is the industry there yet?” the answer is yes, and impression-based TV buying is the way forward.
This week Consumer Confidence was up 2.3 points to 78.1, continuing the up-down pattern of the last six weeks, but above the 76.38 average that has been consistent since mid-July. Of greater concern is the longer-term performance of the index, which has now spent a record six months (26 weeks) below the mark of 80 – alarmingly deep in recessionary risk territory. With the June quarter GDP figures to be released next week, there are expectations that these will show low to no growth in the last quarter.
Inflation Expectations were down 0.3% points this week, with Australians now expecting annual inflation to be 5.2% over the next two years. This is the equal lowest Inflation Expectations since mid-May.
Additionally, 29.2% of all Australian mortgage holders at now ‘at risk’ of mortgage stress, which equates to a record high of 1.5 million. As a point of comparison, 35.6% mortgage holders were ‘at risk’ during the Global Financial Crisis, with the difference accounted for due to the much larger pool of Australians with mortgages now.
Further to this, and most concerning, is 20.3% of mortgage holders are now ‘extremely at risk’, equivalent to one in five or over 1 million people, and is the highest figure since July 2008. These figures are concerning enough however if the RBA further raises interest rates next week – perhaps due to concerns about the low Australian Dollar, now under 65 US cents – these numbers will continue to increase.
Samba TV has released their State of Viewership in Australia report for H1 2023 and the data isn’t looking good for Linear TV. The report showed that television viewers are firmly divided into two parties - the 50% that watches the most linear FTA TV are consuming 89% of all commercials seen, while the bottom 50% in terms of viewership are exposed to just 11% of ads.
“While that bottom 50% of Australian households were under reached or not reached at all, those heavy linear viewers who make up the upper half were bombarded by 70 TV ads daily, driving costly ad fatigue,” the report explains.
Around half of Australian households, some 5.2 million, watch linear television every day. However, the total hours of linear TV watched throughout the first half of this year has dropped off, with average daily reach slightly down as a result. Subscription over-the-top services (media offered directly to viewers via the Internet) increased by 3% year-on-year, building on a 5% increase from 2021 to 2022.
From an advertiser perspective, the report suggests that BVOD should be used to engage consumers that have shifted away from traditional, linear TV consumption. “For years, linear has been oversaturating the same viewers with hundreds of ads. Comprehensive, omniscreen measurement is essential to manage reach ad frequency across the new opportunities that over-the-top advertising presents.”
“With the first half of 2023 behind us, advertisers are seeing real-life rewards on streaming and broadcaster video-on-demand (BVOD), with better managed audience reach and frequency,” the report explains.
In the week up to the 26th of August, a total of 956 million BVOD minutes were consumed, reaching 6.1 million people nationally (-7% WoW).
Remaining consistent from the past few weeks, The Block continues to dominate taking out 4 of the top 5 spots in terms of viewership, with ABC’s Bay of Fires taking out second place. Seven has maintained their position in top programming, with The Voice occupying spots 6, 8 and 10, interestingly with the highest viewership percentage against F18-24 across the top 10 programs.
Source: OzTAM Video Player Measurement