Imagine a world in which advertisers only paid for TV ads if they actually generated the expected returns.
That is the world LG Ads is now joining, as the unit launches a range of guaranteed, outcome-based ad offerings for 20 million US connected TV sets, mobile and web.
In this video interview with Beet.TV, LG Ads’ Serge Matta explains why it is so important.
“Don’t pay us until an app has actually been installed on the LG TVs,” Matta says.
‘C’ for ‘certainty’
LG Ads is the division of the electronics maker that makes its smart TV offering available to advertisers.
Through its new Guaranteed Outcomes program, it will pledge that every campaign bought and delivered either via on-TV native ads or CTV video will hit stated KPIs.
As a starting point, ad buyers can get guarantees on:
- reach and frequency
- household Income
- education level
- presence of children
- video completion rates (VCR)
More interestingly, the program will guarantee on conversion metrics, starting with app installs. Coming in the next few months, it will also offer guarantees on:
- web visits
- physical location visits
It will work through ads delivered against across “hundreds of free streaming channels in both the free LG Channels streaming service and the LG content partner network”, according to the announcement.
LG Ads’ announcement includes support from media agencies Universal McCann and Dentsu Media, though detail of initial adopters is not known.
LG Ads is particularly keen to point out that Guaranteed Outcomes are being verified by MRC-accredited third-party measurement partners.
That includes iSpot.tv for reach and frequency, and the likes of Innovid, Flashtalking, Sizmek and Google for VCR.
Matta says he doesn’t want to be “grading our own homework”.
LG Ads is taking the new offering into the US upfront TV ad sales season, hoping to entice ad buyers with new targeting and measurement capabilities.
“It feels like it is definitely new in CTV,” Matta says.
“Traditionally, there’s been some guarantees, especially around demo, around age and gender.”
But he says the inclusion of guarantees against viewer education, household children presence and other indicators is unique.
You are watching “Transformation: CTV and Data Are Changing the TV Advertising Marketplace,” a Beet.TV leadership series presented by LG Ads. For more videos, please visit this page.