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BizReport : Advertising archives : October 28, 2019

Expert: How connected devices are changing data collection, use

By the end of 2020, some believe about 75% of US homes will have - and use - connected television sets, giving brands even more data about consumers' preferences, viewing habits, and lives than ever before. And, much of that data will be real-time, which could give brands and marketers the ability to offer more immediacy in campaigns. But, are brands ready?

by Kristina Knight

Kristina: What kinds of consumer information might connected devices offer to businesses and marketers?

Tripp Boyle, Chief Revenue Officer, Connekt Technologies: As the evolution of the CTV ecosystem continues, data standardization will begin to emerge. While existing measurement systems like Nielsen TAM are not going away, we'll start to see more digital methodologies emerge to answer these questions: Who was the most responsive audience? Who clicked where and when? How long did a viewer watch each individual ad?

Outcome-based models provide a treasure trove of data for marketers and create more relevant experiences for viewers -- so advertisers should take full advantage. For example, A+E reportedly closed five deals with outcome-based guarantees during its upfront in 2018, promising to optimize those campaigns in mid-flight based on factors such as sales, foot traffic and website visits.

More deals like these will likely continue, giving both businesses and consumers the opportunity to learn more about the technologies involved, the results they return and the impact they have on performance.

Kristina: How can brands begin prepping for this kind of data?

Tripp: Brands must have more accountability in the $70 billion TV advertising market if they want to prepare for the data and measurement capabilities that come along with it. Adapting to newer technologies and methods will be key for brands aiming to stay ahead in the advanced TV game.

As data standardization becomes more commonplace, brands should begin leveraging these insights to drive increased TV ad engagement and attribution.

Kristina: How does TV attribution now compare to TV attribution once these connected TVs are delivering audience measurement?

Tripp: The industry will begin to see more attribution with retargeting, from ad enhancement and offers pushed to mobile devices, to brick-and-mortar conversion and most importantly, audience measurement.

Addressability at a much more granular level is what everyone is after, and this can only happen with widespread digital attribution. If the value exchange between advertisers and consumers can be improved as part of the process -- that data is going to become even more valuable.

Measuring TV attribution in a silo will give brands more data to compare to digital platforms, which is helpful. However, the real payoff comes with the ability to move linear TV to a multi-touch attribution model, providing a more holistic picture of the customer journey. Television will continue to play a huge role at the top of the funnel, but multi-touch is the ultimate goal for TV attribution.

Kristina: What challenges might connected TV data bring about for advertisers?

Tripp: When consumer data is in the mix, privacy concerns are right there with it. However, readily available and transparent data can increase the value advertisers provide to consumers and networks.

Pushback from the networks is a given, especially around upfronts. With scarcity intensifying, the networks have little motivation to commoditize their inventory or sell it down. Cutthroat competition with one-time, low-margin device sales is another challenge that will arise, but the wealth of knowledge that comes along with connected TV data will give networks a different outlook.

Kristina: What are your top 3 tips for marketers to leverage this kind of data?

Tripp: 1. Be an early mover. Those who leverage this data first will end up ahead of their competition and reap the benefits of new paradigms. Marketers will also gain access to first-mover cost efficiency that can quickly evaporate once the model is proven.

2. Take full advantage of the wealth that this type of data provides. Direct response turns viewing into interactive and engaging experiences, increasing brand awareness and leading consumers into a purchase.

3. Prepare for adaptation as TV attribution and addressability are coming sooner than we expect. We'll start to see a marked shift in priorities becoming apparent over the next 12 months, so marketers need to be ready to leverage this kind of data.

Tags: advertising, connected devices, connected tv, Connekt Technologies, consumer data, tv advertising

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