Since the first TV commercial aired on NBC in 1941, measuring the success of TV advertising has been a major hurdle for marketers. According to PwC, marketers spent a hefty $71B on TV advertising in 2015. However, TV’s total share of media spend has been declining, with the number one reason being “targeting and measurement capabilities that don’t give senior marketers what they need,” according to a poll by eMarketer.
Now, as the market shifts toward advanced segmentation and attribution capabilities, new doors have been opened for marketers. With addressable TV and location-based measurement entering the ring, these pain points for marketers will soon be a thing of the past.
What is Addressable TV?
Addressable TV is a relatively new concept in the industry, and primarily refers to the ability to target specific TV commercials at the household level. This level of granularity for delivering commercials to audiences is a rapidly growing slice of the TV advertising pie, especially for data-driven marketers with clearly defined audiences.
Measuring Addressable TV Campaigns with Location Data
For the first time, marketers can now measure the impact of addressable TV campaigns through location data from anonymized mobile signals. From this latitudinal/longitudinal location data, PlaceIQ can draw intelligent conclusions about how consumers react to addressable TV campaigns. With TV viewership data added into the mix, it’s finally possible to achieve closed-loop addressable TV campaigns, and understand how a TV ad impacts real-world visits to a store. Campaign success is measured through PlaceIQ’s Place Visit Rate (PVR), a first-of-its kind metric that measures actual foot traffic driven to physical locations by advertising campaigns.
Results in the Spotlight
Recently, PlaceIQ and Acxiom’s LiveRamp completed a series of industry-first addressable TV campaigns across auto, retail and travel brands, measuring the impact of TV campaigns on real-world consumer behavior. For the first time ever, we measured the promise that addressable TV provides to marketers in terms of hyper targeting. The byproduct? Knowledge of how these ads affected shopping habits, auto dealership visitation, and more. By coupling household-level TV advertising with location visitation data, PlaceIQ and LiveRamp were able to demonstrate a substantial lift in visitation across a series of brands in major verticals. Key findings included:
— Auto brands experienced an average lift of 50% in dealership visitation
— Retailers saw an average lift of 70% in visitation
— Tourist destinations measured an average lift in visitation by 20%