Advanced TV advertising techniques promise brands the ability to precision-target consumers by the household and to more smartly cap the number of times they do so.
But how quickly are brands embracing the opportunity?
In this Samsung Ads panel at Advertising Week, two major brands were asked how fast they are welcoming in addressable TV.
Moderating, eMarketer analyst Nicole Perrin referenced eMarketer’s projection that “between 7% and 10% of upfront (TV)spending would go to advanced TV buys”.
Hershey’s goes all in
Vinny Rinaldi – Head of Addressable Media and Technology at The Hershey Company
“We’re looking towards the higher end of that number. The only way to truly grow a big brand and business is to reach new people.
We jumped right off the diving board starting this year and started testing right out of the gate. Our brands need to just find incremental reach, that’s the biggest thing. About six years ago, 97% of our total budget was in linear television. Going into 2020, that number is going to be under 50% for the first time.”
PepsiCo tests the water
Shoba Subramanian – Director, Global Media & Platforms CoE at PepsiCo at PepsiCo:
“It’s a slow moving force for us. We started out with a few test-and-learns. we looked at the entire advertising landscape … then we had to present this out to everyone (in the company).
“We’re starting out with very small tests in market to prove out that hypothesis, that it can actually result in incrementality, you can get these new audiences you’ll never touch otherwise.”
Spending lags consumption
Tim Spengler – President, M1 US at Dentsu Aegis Network
Spengler said the up-to-10% of TV spending migrating to addressable is underplaying the profound consumer shift that has already gone in that direction.
“It is too small. You got 20 plus percent of households who don’t have a linear cable box delivering content into their home. They’ve cut the cord, (or) they’re cord-nevers.
“If you don’t play in this space, you’re going to have a reach problem and you’re going to have an over frequency problem and you’re going to have a problem in knowing your customer, who has now seen the eighth ad today from your brand.”
First findings emerge
Hershey’s Rinaldi says his company’s first addressable campaign bodes well.
“What we’re showing early on with our first advanced TV buy, is in a small testing environment, we’ve grown our reach by 5%,” he says. “Showing an old big brand that you can grow their reach by 5% in just a small testing environment, I think the sky’s the limit as we move into 2020.”
PepsiCo’s Subramanian says the landscape is complex. “The one platform I feel is a slam dunk for most brand marketers is Hulu,” she says. “I think people relate to it more comfortably as a consumer and that translates into brand decisions.”
This video was produced at the Samsung Ads Leadership Forum during Advertising Week, 2019. It is sponsored by Samsung Ads. For more videos from the event, please visit this page.