Using Big Data to Better Understand TV Advertising Effectiveness

Transcription

1 WCAI 2014 Annual Conference Using Big Data to Better Understand TV Advertising Effectiveness Claudio Marcus Executive Vice President, Research & New Initiatives Bob Bress Senior Director, Product Management & Analytics

2 VISIBLE WORLD: LEADER IN TV AD TECH & APPLICATIONS FUNDAMENTAL ROLE FOR TV FOCUSED DATA-DRIVEN RESEARCH Hundreds of Advertisers Thousands of Campaigns MVPDs TV Networks Other WCAI Conference

3 TV ADVERTISING IS A DOMINANT AND ESSENTIAL VEHICLE FOR MVPD CROSS-CHANNEL AND TV NETWORK MARKETING Percent of Time Watching TV/Video (U.S. P18+) Linear TV Time Shifted TV Video on Internet Video on SmartPhone Source: Nielsen Cross Platform Report, 2014 WCAI Conference

4 DATA-DRIVEN RESEARCH WITH A FOCUS ON EFFECTIVENESS OF MVPD CROSS-CHANNEL AND TV NETWORK MARKETING BIG DATA INSIGHTS REVEAL MSO MARKETING EFFECTIVENESS 2013 USING SMART TV DATA TO ENHANCE TV PROGRAM PROMOTION EFFECTIVENESS 2014 WCAI Conference

5 MVPD CROSS-CHANNEL MARKETING EFFECTIVENESS UNDERSTANDING TV VIEWING, SUBSCRIBER BEHAVIOR & VALUE 1 MVPD 18 months 13,346,280 subscriber records (no PII) 144 cross-channel marketing campaigns 57,929,300 campaign records 10,342,499,269 STB Viewing records WCAI Conference

6 TV VIEWING BEHAVIOR AFFECTS LIKELIHOOD OF EXPOSURE TO MVPD CROSS-CHANNEL MARKETING CAMPAIGNS (AND OTHER ADS) Percent of Total TV Viewing Time Top Quintile accounts for 45% of all TV viewing Top two quintiles account for 69% of all TV viewing Top Quintile 2nd Quintile 3rd Quintile 4th Quintile Bottom Quintile WCAI Conference

7 FREQUENCY OF CAMPAIGN EXPOSURE REVEALS SIGNIFICANT ISSUES WITH OVER/UNDER EXPOSURE AND MISLEADING AVERAGES Average frequency ~2.7 exposures: ~50% only see one exposure 4% of subscribers account for ~60% of all exposures 70% 60% 50% 40% 30% 20% 10% 0% Average Frequency of Campaign Exposure Subscribers Impressions WCAI Conference

8 ABILITY TO TARGET SUBSCRIBERS BASED ON PRODUCT/SERVICE OWNERSHIP CAN YIELD 70% INCREASE IN CONVERSION RATES ~ 50% of exposures reach subscribers who already have the product(s) On-target conversion averages 70% greater relative to all reached subscribers 14% 12% 10% 8% 6% 4% 2% 0% Visualization of Campaign Effectiveness On-Target campaign conversion Overall campaign conversion WCAI Conference

9 Average Campaign Frequency Average Campaign Conversion Rates HOUSEHOLD ADDRESSABLE TV ADVERTISING CAN BE USED TO MAXIMIZE ON-TARGET EXPOSURE AND FREQUENCY CAPPING Conversion increases with on-target message frequency but only up to a point (5x) Addressable TV ads offer the opportunity to ensure on-target exposure and enable frequency capping to reduce waste and increase conversion Conversion based on Frequency of On-Target Exposures 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.00 Bottom 4th 3rd 2nd Top TV Viewing Quintiles WCAI Conference % 9

10 DATA-DRIVEN RESEARCH WITH A FOCUS ON EFFECTIVENESS OF MVPD CROSS-CHANNEL AND TV NETWORK MARKETING BIG DATA INSIGHTS REVEAL MSO MARKETING EFFECTIVENESS 2013 USING SMART TV DATA TO ENHANCE TV PROGRAM PROMOTION EFFECTIVENESS 2014 WCAI Conference

11 Millions USING LARGE SCALE TV VIEWING DATA FROM SMART TVs TO UNDERSTAND TV PROGRAM PROMOTION EFFECTIVENESS Enabled Smart TVs use Automated Content Recognition (ACR) ACR enabled Smart TVs Matches fingerprinted video content ads, promos or programs Agnostic to type of operator, ad inventory, or type of viewing WCAI Conference

12 ENABLED SMART TV DATA ALLOWS FOR TIMELY REPORTING OF TV PROMO EXPOSURE AND VIEWING CONVERSION METRICS Campaign exposure and program viewing conversion by: Geography Network Daypart Recency Frequency Creative more to come WCAI Conference

13 CAMPAIGN FREQUENCY DISTRIBUTION CURVES AND RELATED CONVERSION RATES REVEAL CHALLENGES AND OPPORTUNITIES Quantified evidence: Hard to build reach and frequency Frequency impacts conversion with diminishing returns Reach trumps frequency in effectiveness WCAI Conference

14 EXPOSURE TO VARIOUS CREATIVE AND RELATED CONVERSION RATES HIGHLIGHT SUBSTANTIAL DIFFERENCES IN MESSAGE PERFORMANCE Conversion differences based on placement and timing Exposure and Program Viewing Conversion by Creative, Network and Date Understanding relative creative performance enhances development and placement WCAI Conference

15 DATA-DRIVEN RESEARCH WITH A FOCUS ON EFFECTIVENESS OF MVPD CROSS-CHANNEL AND TV NETWORK MARKETING BIG DATA INSIGHTS REVEAL MSO MARKETING EFFECTIVENESS 2013 USING SMART TV DATA TO ENHANCE TV PROGRAM PROMOTION EFFECTIVENESS 2014 WCAI Conference

16 WHAT IS DYNAMIC TV AD SCHEDULE OPTIMIZATION? Automated TV Ad Scheduling Objectives & Constraints Near real-time viewing & conversion data Linear & Non-linear Programming Algorithms WCAI Conference

17 Networks Ranked by Average Daily Ratings SCHEDULE OPTIMIZATION YIELDS MEDIA EFFICIENCY AND/OR GREATER ON-TARGET IMPRESSIONS AND MESSAGE EFFECTIVENESS Allocation Before Network 12a-6a 6a-12p 12p-6p 6p-12a NICK 0.3% 0.2% 0.2% 0.4% USA 0.4% 0.4% 0.4% 0.3% FOXNC 1.1% 0.9% 0.7% 0.8% TNT 1.0% 0.9% 0.7% 0.6% TOON 0.6% 0.7% 0.7% 0.6% HIST 0.4% 0.4% 0.4% 0.4% HGTV 0.2% 0.4% 0.4% 0.4% AEN 0.3% 0.4% 0.3% 0.3% FX 0.2% 0.4% 0.4% 0.3% AMC 0.6% 0.5% 0.5% 0.4% TBSC 0.6% 0.5% 0.4% 0.4% ESPN 0.8% 0.8% 0.5% 0.5% FOOD 0.3% 0.6% 0.6% 0.5% TLC 0.3% 0.5% 0.6% 0.5% FAM 0.5% 0.3% 0.4% 0.4% DISC 0.1% 0.3% 0.4% 0.4% SPIKE 0.4% 0.4% 0.4% 0.4% HALL 0.5% 0.5% 0.5% 0.4% LIF 0.4% 0.4% 0.4% 0.4% MTV 0.3% 0.3% 0.3% 0.2% CMDY 0.9% 1.0% 0.8% 0.7% MSNBC 1.1% 1.0% 0.8% 0.9% BET 0.8% 0.7% 0.6% 0.7% CNN 1.2% 1.1% 0.8% 0.8% SYFY 0.9% 0.8% 0.8% 0.6% ENT 0.2% 0.5% 0.4% 0.4% APL 1.2% 1.0% 0.8% 0.9% TRU 1.0% 0.9% 0.8% 0.7% BRVO 0.6% 0.6% 0.6% 0.5% TWC 0.4% 0.3% 0.3% 0.3% TRAV 0.2% 0.4% 0.4% 0.4% HLN 0.8% 0.7% 0.6% 0.6% VH1 0.4% 0.4% 0.4% 0.4% ESPN2 0.6% 0.5% 0.5% 0.4% GOLF 0.6% 0.5% 0.5% 0.5% CNBC 1.3% 1.0% 0.9% 0.9% FS1 1.4% 1.2% 1.1% 1.2% NBCSN 1.2% 1.0% 0.9% 0.9% NFLN 1.1% 1.0% 1.0% 0.9% BTN 0.6% 0.7% 0.7% 0.6% CSC 1.1% 1.1% 1.0% 0.9% Allocation After Network 12a-6a 6a-12p 12p-6p 6p-12a NICK 0.4% 0.2% 0.3% 0.5% USA 0.5% 0.4% 0.4% 0.4% FOXNC 1.3% 1.0% 0.9% 0.9% TNT 1.2% 1.1% 0.9% 0.8% TOON 0.8% 0.9% 0.9% 0.7% HIST 0.4% 0.4% 0.4% 0.5% HGTV 0.2% 0.4% 0.4% 0.4% AEN 0.4% 0.4% 0.4% 0.4% FX 0.3% 0.5% 0.5% 0.4% AMC 0.8% 0.6% 0.6% 0.4% TBSC 0.6% 0.5% 0.5% 0.4% ESPN 0.9% 0.8% 0.6% 0.5% FOOD 0.3% 0.6% 0.6% 0.5% TLC 0.3% 0.6% 0.7% 0.7% FAM 0.5% 0.4% 0.5% 0.4% DISC 0.1% 0.3% 0.5% 0.4% SPIKE 0.4% 0.5% 0.5% 0.4% HALL 0.6% 0.6% 0.6% 0.5% LIF 0.5% 0.5% 0.4% 0.4% MTV 0.6% 0.6% 0.5% 0.4% CMDY 1.1% 1.2% 1.0% 0.9% MSNBC 1.3% 1.1% 1.0% 1.1% BET 1.0% 0.9% 0.7% 0.8% CNN 1.4% 1.3% 1.1% 1.1% SYFY 1.1% 0.9% 0.9% 0.7% ENT 0.3% 0.6% 0.5% 0.5% APL 1.4% 1.2% 1.0% 1.0% TRU 1.2% 1.1% 1.0% 0.9% BRVO 0.7% 0.7% 0.7% 0.6% TWC 0.7% 0.6% 0.6% 0.5% TRAV 0.3% 0.5% 0.5% 0.5% HLN 1.4% 1.1% 1.0% 1.0% VH1 0.7% 0.0% 0.6% 0.6% ESPN2 0.0% 0.6% 0.6% 0.5% GOLF 0.0% 0.0% 0.8% 0.7% CNBC 0.0% 1.2% 1.1% 1.1% FS1 0.0% 0.0% 1.4% 1.5% NBCSN 0.0% 0.0% 0.0% 1.1% NFLN 0.0% 0.0% 0.0% 0.6% BTN 0.0% 0.0% 0.0% 0.0% CSC 0.0% 0.0% 0.0% 0.0% WCAI Conference

18 TV AD SCHEDULE OPTIMIZATION USING CONVERSION DATA Traditional Media Scheduling Approach Conversion-Enhanced Optimization Maximize target impressions Target high-index demo segments Measure target impressions Maximize conversions Target expected conversion Measure conversions WCAI Conference

19 EFFECTIVE IMPLEMENTATION OF DYNAMIC SCHEDULE OPTIMIZATION RESOLVES PROBLEMS RELATED TO LONGER TERM FORECASTING 800,000 Actual Predict Schedule Optimized 600, , , /23 9/24 9/25 9/26 9/27 9/28 9/29 9/30 10/1 10/2 10/3 10/4 WCAI Conference

20 DATA-DRIVEN RESEARCH WITH A FOCUS ON EFFECTIVENESS OF MVPD CROSS-CHANNEL AND TV NETWORK MARKETING BIG DATA INSIGHTS REVEAL MSO MARKETING EFFECTIVENESS 2013 USING SMART TV DATA TO ENHANCE TV PROGRAM PROMOTION EFFECTIVENESS 2014 WCAI Conference