Big Data research reveals on-target TV ads are 70% more effective than overall TV campaign results
NEW YORK - While the growth in digital advertising has led some pundits to caution that TV advertising is falling behind in terms of its marketing impact, the results of a ground-breaking research initiative involving more than 10 Billion anonymous TV viewing records proves that TV advertising actually has great potential to become an even more effective advertising medium.
“We were excited to lead this ground-breaking research assessing TV campaign effectiveness based on strict association with changes in consumer behavior, namely, whether they bought the product or service being promoted.”
The research effort was led by Visible World, a leading provider of TV advertising technology and applications, in collaboration with b3Intelligence, a data-driven research firm founded by senior research and operations executives who previously worked with comScore. The study matched anonymous TV subscriber and viewing information with every ad insertion associated with TV campaigns conducted by a leading cable operator over a period of 18 months.
“The results of this study are significant in that they are based on an enormous amount of data and a large number of campaigns,” said Claudio Marcus, EVP of Marketing and Research at Visible World. “We were excited to lead this ground-breaking research assessing TV campaign effectiveness based on strict association with changes in consumer behavior, namely, whether they bought the product or service being promoted.”
While the research identified a number of significant challenges marketers face when using TV advertising, it also reaffirmed that TV advertising works particularly well when viewers are exposed to more relevant ads. A notable finding was that across all of the campaigns examined, conversion rates for on-target viewers were 70% higher than overall campaign results. This means that the ability to deliver a targeted message to a qualified consumer dramatically increases TV campaign effectiveness.
“We were glad to apply our expertise to TV-related data, and the research was quite fruitful as it revealed important findings relative to the impact of TV viewing and TV ad targeting on campaign effectiveness,” said Harvir Bansal, Ph.D., Chief Research Officer at b3Intelligence. “Based on the research results, we see clear opportunities to develop segmentation and impact models that are designed to further enhance the efficiency and effectiveness of TV advertising.”
The research white paper titled Big Data Reveals MSO Marketing Effectiveness concludes with a positive outlook for TV advertising effectiveness, fueled by the growing adoption of technologies and applications that enable household level addressability, dynamic video customization, automated traffic and delivery, and meaningful analytics. Altogether, these capabilities bring together the targeting, automation and measurement capabilities of digital marketing with TV’s massive audience scale. One particularly notable application is the ability to use household addressability to implement frequency capping to avoid overexposure among heavy TV viewers and build frequency among lighter viewers.
TV continues to be the most efficient way to reach mass audiences. The research findings of sales conversion associated with on-target TV ads provide compelling data-driven evidence that currently available advanced TV ad technology can further enhance the overall value of TV advertising. For additional coverage and insights, please see Joe Mandese’s piece in MediaPost on August 6, 2013.
b3Intelligence offers data analytics, business intelligence and integrated research services. The b3Intelligence leadership team has a strong background in high-end analytics specialized marketing research, and uses this deep expertise to help companies obtain the in-depth answers they need to improve their marketing decisions, processes and ROI. Learn more at www.b3intelligence.com.
About Visible World
Visible World is the leading provider of targeted television advertising solutions. The company’s suite of products and services makes it easy to produce, target and measure TV ads that are more relevant for viewers and more effective for advertisers. Visible World empowers more than 300 advertisers to deliver more effective and more accountable campaigns to consumers in approximately 80% of US cable homes, and has begun to expand its capabilities to emerging video platforms. More information can be found at www.visibleworld.com.