National TV ad spend share by targeting type:
1) Age/Gender — 95%
2) Advanced TV/Audience — ≈ 3%
3) Addressable — 2%
1) Total TV ad market — $70.2B
2) % targeted to age/gender — 95%
3) Total $ targeted to age/gender — $66.7B
4) Digital video spend — $12.6B
Big opportunity: For every $1 in digital video ad spend, there is $5 of traditional TV spend that is still targeted to age/gender.
Quote from Omar Sheikh — Analyst @ Credit Suisse:
“Investors continue to regard U.S TV advertising as a structurally declining business, driven by erosion in viewing and competition from the growing reach of digital platforms,” Sheikh said. “In our view, if the TV industry can combine its reach with greater relevance by using technology to improve targeting, the medium will be well-placed to grow its share of the marketing mix over time. This will particularly be driven by below-the-line items, including direct mail and telephone marketing, which account for more than $100 billion of spend today.”
68% of advertisers cite improved targeting/less waste as a leading benefit to advanced TV advertising.
More audience spend: Turner is pushing advertisers to increase their advanced TV spend to 5%.
Quote from David Levy — President @ Turner Networks:
“We’re seeing incredible double-digit incremental results on return on investment,”
ROI increase from shifting ad spend to audience targeting:
1) 5% of spend — ↑ 6% ROI
2) 10% of spend — ↑ 12% ROI
3) 20% of spend — ↑ 24% ROI
4) 50% of spend — ↑ 60% ROI