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Addressable

Addressable. Reach and Scale. The largest national addressable ad platform (8.5 M HH increasing to 11 M in Q4 2012) offering household-level targeting to allow advertisers to reach just their intended audience

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Addressable

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  1. Addressable

  2. Reach and Scale • The largest national addressable ad platform (8.5 M HH increasing to 11 M in Q4 2012) offering household-level targeting to allow advertisers to reach just their intended audience • DIRECTV has been testing the system with a select group of leading advertisers and is now ramping up to a full deployment in January 2013

  3. Delivering Improved ROI Efficiency • Effective CPMs – efficiency measure compared to GRPs, reach your desired audience for less than your current buys Engagement • Time Spent Viewing the Ad – engagement measure that should be higher due to increased effectiveness Effectiveness • Closed Loop – matchback of viewing sample to client transaction data (process still in development and requires additional time and approvals Increases in Efficiency, Engagement and Effectiveness yields a better return on advertising spend

  4. Efficiency – Lower Effective CPMs(Target Audience M25-54, $150K+ Income) • Traditional Ad Buy • Buying Target: M25-54, $150K+  Buying Impression Goal: 114M M25-54  Investment: $2,000,000, gross CPM = $17.50 • Delivered Target: 114M M25-54 @ $17.50 CPM  but only 14M are true target of $150K+ = $140 eCPM A small percentage of the audience is within the true target demo, increasing the effective CPM to $140 DIRECTV Addressable Buy Buying Target: M25-54, $150K+  Buying Impression Goal: 14M M25-54, $150K+  Investment: $980,000 Delivered Buying Target: 14M M25-54, $150K+ @ $70.00 eCPM 100% of the audience is within the true target demo reducing the effective CPM by 50% to $70,achieving savings of $1,020,000in this example M25-54 M25-54, $150K+

  5. Make Your Investment Work Harder and Go Farther (Target Audience M25-54, $150K+ Income) Traditional Ad Buy Buying Target: M25-54  Gross CPM: $17.50, Invest $2,000,000 to reach 114M M25-54, but only deliver 14M impressions against the true target of $150K True Target Reach: 14M Buy Efficiency: 12.3% DIRECTV Addressable Buy Buying Target: M25-54, $150K+ , Invest $2,000,000 at a targeted CPM of $70.00, All impressions are within the true target True Target Reach: 28.6M Buy Efficiency: 100% Same Investment reaches more than 2x the true target audience M25-54 M25-54, $150K+

  6. Ad Engagement – Time Spent Viewing % of Ad Viewed • Enhanced relevancy due to targeted capabilities equates to higher viewer engagement • Initial addressable television advertising trials have proven: • Ads targeted to the right HHs will be viewed for a 35% longer duration than ads targeted to all HHs* • Post campaign reporting will include ad viewing time as measured by third-party (KANTAR) *Data sourced by SMG

  7. EffectivenessClosing the loop from advertising to desired action or purchase TargetAudience Viewed Addressable Ad Purchased Vehicle Match Back Purchase Data • NOTE: Match back analysis performed using test and control methodology to isolate impact of advertising and measure effectiveness. Match back purchase data supplied by client via 3rd party privacy compliant process.

  8. DIRECTV Addressable System Advertiser commercial is pushed to DVR for future play out Addressable Break Occurs Measurement KANTAR measures and produces campaign performance report DIRECTV Data 3rd Party Data HH Profiles live on the DVR using both DIRECTV and 3rd Party Data elements DIRECTV delivers appropriate advertisement to target audience

  9. Targeting and Attributes • Establish advanced target using both DIRECTV and Experian data mapped to the HH level including: • Customer Attributes such as Geography, Age, Income, Sex, Occupation, Kids in Home, etc. • Behavioral Attributes such as VOD purchasers, Premium Channel Sub, etc. • Psychographic Attributes such as Weight Conscious, Environmentally Friendly, etc. • Clients can also provide custom data sets that can be matched to the DIRECTV audience in a privacy compliant manner

  10. Measurement *Sample screen shots of third-party KANTAR reports not associated with actual campaigns • Third-Party campaign post reporting and analysis provided by KANTAR • Available metrics will include: • Impressions • Reach and Frequency • Ad retention time • Impressions distribution: • By network, daypart and programming genre

  11. Addressable Appendix

  12. 1 2 3 Lets Get Started It’s as easy as 1,2, 3… Establish advanced targeting criteria using both DIRECTV and Experian data mapped to the HH level including: Customer, Behavioral, Psychographic, and Custom variables Deliver your message to the appropriate HHs that match your targeting criteria, wherever and whenever they are watching television Measure and quantify campaign results through third-party post reports provided by KANTAR. Available metrics include: Impressions, Reach & Frequency, Ad retention Time & Impression distribution

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