“We need to redefine what is relevant,†says Mark Goldstein, chief executive officer, North America, GroupM and chair of Media Policy Committee, and outgoing president/CEO of the
4A’s.
He says this is important considering new metrics and media tools, including commercial ratings, future addressable advertising.
For example, he looks at a client whose
target is adults 25-54, who wants to buy a primetime show with a $150,000 unit cost price tag. This comes out to a $27 CPM for adults 25-54 viewers.
But he adds, under the current system, if
that client also wants upscale viewers the CPM skyrockets to $165 for those adult 25-54 viewers.
Under addressable advertising, however â€" in just targeting $125,000 plus viewers
â€" that CPM actually drops to $100.
“Is that high?†asks Goldstein. “I might not think so because there is no waste.†Over the course of a client’s
typical $25 million buy, addressable advertising could save a marketer say $10 million.
“It was only possible because we have redefined the benchmark,†he says.
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