LAS VEGAS – To Simulmedia, which has about a decade head start in optimizing linear television ad targeting, it’s a good sign that large network groups have decided to adopt data-optimized, audience-based campaigns. “It’s critical to get their adoption to move a market because the TV ad market is one where demand exceeds supply,” says Dave Morgan, the company’s CEO and Founder.
“Unless the TV companies are selling it, no one can buy it,” Morgan says in this interview with Beet.TV at CES 2018. “Having their recognition that this is a way to deliver better value for the marketers and make more money themselves has been a really big step.”
In the “old days” of TV, a $3 million, three-week linear TV ad campaign might have involved buys on 10 networks and 110 spots. “But now that everything is fragmented, you really need to do it more precisely. So for us, that same campaign might be 70 networks and 3,000 spots.”
Post-campaign analysis used to take a month following the campaign’s end. Now it can be delivered in one day, showing not just gross rating points and demographics but how much of the advertiser’s target audience was reached. Simulmedia matches those data to the advertisers’ first-party purchase data at the household level. Therein lies the challenge of the future for traditional advertising and media agencies.
“The agencies just are not structured or staffed to be able to execute campaigns at that level,” says Morgan. “You need a lot of software automation, which we have, you need a lot of predicative analytics, which we’ve built” to traffic the creative and provide daily reporting.
Simulmedia counts among its clients Choice Hotels, Clorox, Expedia and Home Depot.
The company is still “very, very focused” on linear TV and the biggest reason is “that’s where the money is. Number two, that’s where the under-optimized opportunity is.”
Morgan sees the need for more collaboration among industry players given the growing importance of cross-screen TV viewing. He cites the example of Simulmedia’s partnership with Facebook.
“If you’re running a retargeting, campaign it’s natural for you to want to understand what people are likely to get a TV ad in the same day or two. So that you can make sure that you can maximize the proximity and time and to person in the delivery of those two messages.”
While the definition of TV is bound to keep changing, Morgan believes one thing that’s certain is the importance of viewing on large screens. “Maybe it’s not going to be the same hardware device but the large-screen format is going to continue to be really powerful,” says Morgan.
This video was produced by Beet.TV in Las Vegas at CES 2018. Please visit this page for more coverage.