Nielsen wants to deliver you targeted ads on your TV
Digital and linear getting down and dirty.
The defining phrase of the digital advertising era—delivering the right message to the right audience at the right time—has always been farcical, at least on its face.
We know the example: you buy a pair of sneakers online, and then you get pummeled with sneaker ads for three weeks. Just in case you needed another pair.
But under the hood, the mechanics of digital advertising have shown, whether it was the behavioral targeting networks of the early aughts (Revenue Science, Tacoda, etc) or the DSPs of today, that tech can increase scale, reach and efficiencies. (Not to mention the slew of privacy and data challenges that come with it. But that’s for another day.) The tech can also help advertisers measure how well the ads perform. This has been, at least, Google and Facebook’s message for years.
And as the digital universe smashed into the linear universe, advertisers have clamored for an analogous measurement tool across television. The idea: send TV ads to the right viewer at the right time based on data. The thinking is if we can do it through the web with Google and Facebook, why not through TVs, as we’re building out a connected TV ecosystem.
(image via istockphoto)
Today, Nielsen lunged forward with a planned national measurement system for targeted TV ads set for next year.
The new system will mark a fundamental shift in how Nielsen tabulates commercial viewership. Instead of calculating an average audience for all ads in a program as is the current practice, it will measure each ad individually, which is necessary for targeted advertising to work.
The move is expected to boost the value of TV commercials, which have been under pressure as broadcast and cable networks have been losing viewers to streaming services and brands have flocked to digital advertising.
And according to Adweek:
Its national TV panel of 100,000 people will expand to include 55 million smart TV and set-top box devices: DirecTV, Dish, Nielsen advanced video advertising and addressable campaigns on Vizio TVs that utilize Project OAR’s open addressable standard.
Addressable TV ad spend, Adweek reports, will reach an estimated $3.6 billion in 2022, a 75% increase from August 2020, according to eMarketer. Of course, this is a rounding error of the US TV ad industry, which eMarketer pegs at $70 billion-a-year.
Industry experts seem to fall on two sides: one says that addressability at scale will be a “game changer” for the industry, with addressable capabilities creating a better consumer experience. The belief is that advertisers will finally be able to use appropriate levers to tailor ads to match consumer interests.
According to an NBCU spokesperson, with linear addressable, the company is looking across all technology options, as a clear leader has yet to emerge, and is in conversation with Nielsen about this new product offering.
NBCU also believes that Nielsen is well positioned to make this technology a reality – because in order for this technology to go mainstream, addressable measurement has to be taken into consideration in ratings. And Nielsen can make that happen.
The other, perhaps less sanguine view says, welllllll....
Take tv reporter Anthony Crupi, who tweeted:
Before everyone gets all fired up about Nielsen’s addressable advertising hype, the plan to implement it in 2021 depends upon: a) their ability to roll out software that isn’t aswarm with bugs and glitches, b) getting buyers, sellers & clients to agree to transact against it.
Given past performance, condition “a)” is laughable. And since this is the 14th year in which the almost supernaturally useless C3 currency has been in place, the idea of the three sides of the triangle agreeing on any direct, transformative action seems wildly optimistic.
Nielsen said it was partnering with pay-TV distributors DirectTV, DishNewtork and smart TV manufacturer Vizio. It’ll be interesting to see how this unfolds as AT&T has been looking to dump DirecTV and its ad network Xandr, and if Vizio has learned anything from its spying lawsuit. Sending tailored and targeted ads to specific TVs is just a little creepy.
Taking a broader view, however, the connected TV gold rush is in full swing. As VC money continues to dry up in ad-tech land, with the one-two punch of the coming death of the cookie and the scepter of regulation hanging over the industry’s head, ad-tech companies are looking to go public and it seems as if the VC world is ever-so-slightly pivoting to connected TV/OTT.
VideoAdNews in June spoke with a bunch of investors of where their heads were at.
Eric Franchi, operating partner at MathCapital, an ad tech focussed early-stage venture capital firm whose investments include ID5 and IRIS.TV, said he is particularly interested in data and platforms for the post-privacy era in marketing. “Cookies are going away, consumers deserve choice and marketers want to drive one-to-one personalisation using quality data safely,” he said. “There is a real opportunity for the next generation of leaders right now.”
Remember the phrase “the revolution will be televised?” Well, now it’ll come with tailored ads to each of our living rooms. Think about it this way: should this actually work, the 2024 election cycle will be something to behold. Imagining the targeted Trump and Biden ads delivered specifically for you. Or if you’re in northwest Georgia, the ads from the QAnon-supporting Congresswoman-elect Marjorie Taylor Greene.
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Phish, “Weigh”
Some interesting links:
For the kids-are-alright-in-tech crowd:
Teen AI whiz Katie Stevo navigates the pandemic (Washington Post)
For hackers:
Mysterious Bugs Were Used to Hack iPhones and Android Phones and No One Will Talk About It (Vice)
For platforms:
Trump Supporters Flock to ‘Free Speech’ Platforms After Facebook Ban (One Zero)
For how to fix media from the buyer’s perspective:
GroupM North American CEO Kirk McDonald on fixing media (Ad Age)
For publishers:
Exclusive: Reuters launches new business line aimed at professionals (Axios)
For what happens when lies get passed on as fact:
Election Trust Tracker: Republican Trust in Elections Plummets as 7 in 10 Say 2020 Election Was Not Free and Fair (Morning Consult)
Five alarm fire: How right-wing media is encouraging Trump's election denialism (CNN)