Even though live viewership ratings have declined, we’ve seen an increase in audiences consuming content across newer platforms -- instead of just the TV screen. Changes in viewing behavior demand that buyers and sellers prepare for the eventual convergence of verified cross-platform buying and selling of TV/video inventory at scale.
With NewFronts quickly approaching, there’s no time like the present to develop a holistic approach to cross-platform media buying and selling to better meet the needs of buyers and sellers.
Changing the way TV/video has historically been bought and sold is a big ask for the industry. There is understandable hesitation from both sides about convergence even though buyers and sellers both recognize it as a long-term imperative. Fortunately, there is already plenty of information available to help activate a smarter approach to this process. Here are three concepts that content owners and advertisers should consider before going into NewFronts this year:
1. Know the Metrics That Differentiate High Quality Digital Video Inventory
The metrics to identify high-quality digital video inventory may be slightly different from traditional TV metrics and digital KPIs, but they all boil down to the building blocks of any marketing plan -– reach and frequency. In digital video, advertisers and agencies should focus on key audience engagement metrics beyond GRPs, including Minutes per Viewer, Videos per Viewer and Digital Audience Reach to understand the most valuable content to their target audience.
By benchmarking against other audience segments, these metrics can help establish which content is most likely to deliver their objectives.
Along the same line, content owners should emphasize to advertisers not only the size or quantity of their cross-platform video audience but also the demographics of the audience, and the quality in terms of time spent and engagement.
For example, one TV network regularly engages its tablet audience for an average of more than four hours of video per month on tablets alone, which was more than five times that of its average desktop viewer and nearly twice as much as its average smartphone viewer. Knowing these audience metrics will allow planners to buy digital video inventory where and how their target audience is really engaging with their content.
2. Combine the Benefits of Digital’s Advanced Targeting with the Mass Reach of TV
There’s no debate that advertising through TV is beneficial in terms of the broad reach of audiences and also general targeting based on consumer interests (e.g. reaching golf fans on the Golf Channel or business professionals on CNBC). However, digital video offers a different opportunity to reach a target audience that is impacted in a more relevant way by the content delivered.
By overlaying targeted digital video campaigns with mass media TV campaigns, advertisers can continue to promote their long-term brand equity while also stimulating short-term behavioral impact. Layering in digital video also enables brands to improve the cost efficiency in reaching more elusive target audiences, such as millennials.
3. Review Cross-Platform Metrics to Allocate Dollars & Price Video Inventory Appropriately
U.S. digital video ad spending is expected to more than double from 2014-2018, and as dollars flow to this medium it will become increasingly important to ensure they are being allocated correctly. Understanding where, when and how users are consuming content across desktop, tablet, smartphones and OTT devices helps improve media planning and helps buyers find cost efficiencies.
Content owners can use this information to appropriately develop, package and price video inventory for advertisers according to how well they reach their key audiences based on demographics, consumer behaviors and interests. Consider, for example, that 60% of millennials watch TV/video on smartphones each month and 15% do so every day. Using similar metrics for their own inventory provides a compelling reason for advertisers to commit their dollars to these placements.
The arrival of the cross-platform consumer demands new processes from both buyers and sellers to best reach audiences where they spend time. Adopting a holistic view of video audiences and engagement can maximize results and improve ROI which will ultimately better serve the entire advertising ecosystem.