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State of the Screens

TV Has A Melting Iceberg Problem

By September 26, 2018No Comments

Long tail: 80% of national TV ad inventory occurs on shows with ratings below 0.5 meaning that most of the ad impressions occur in the long tail.

Advanced TV targeting benefits both sides:
1) Buy side — 
Discovery of additional inventory that reaches target audience.
2) Sell side — Ability to sell long-tail inventory at a higher CPM by showing effective cost to reach target audience.

Flashback #1: Audience-based planning is the next battleground for media agencies

The three big innovations in video advertising are:
1) Cross screen measurement
2) Cross screen planning/buying
3) Audience buying

Roughly 10–15% of linear TV advertising is transacted currently against customer data. Most of the focus is on the shift to addressable advertising for TV, but the bigger opportunity is combining the scale of linear TV optimized with customer data.

Flashback #2: Fixing TV’s Demo Obsession

Flashback #3: TV networks race into data-based ad sales

Addressable TV ad spending (% of total):
2015 — $720M (1%)
2) 2016 — $1.5B (2%)
3) 2017 — $3.4B (5%)
4) 2018 — $6.7B (9%)

More #1: Addressable Campaigns: From Data Quality to Optimization

More #2: Nielsen Adopts Advanced TV Targeting Standards

More #3: Sinclair Rolls Out An Addressable Ad Product Via vMVPDs And TV Takes A Giant Step Forward

Quote from Chris Ripley — CEO @ Sinclair Broadcast Group:
“I think there will always be a certain amount of inventory that is non-targeted, because some advertisers just want to blanket the country…But I think a big portion of the inventory, especially if it’s technically capable of being targeted, will be targeted.”

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.