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Navigating the New TV Landscape

The advertising industry’s fascination with addressable advertising has been around for years. Finally, the industry is taking notice and moving forward, and this movement is only going to accelerate.

Thanks to technological advances, there has been concrete progress toward the next generation of finding audiences and buying media. That’s good news for marketers because video is arguably the best and strongest vehicle for getting a message out to consumers, across any device. Reaching the right customer is everything.

The market is fragmented and confusing right now. We have all witnessed broadcast and network ratings declining and pricing going up for ads in those mediums. Consumers are viewing content across multiple screens and devices, using over the top services, and relying on VOD and DVR content.

As CTO and COO of Cadent, I keep a wide-angle view of the ad-buying landscape. Cohesion and organization are possible—we must make the decision to move in this direction as an industry.

Our platform technology focuses on removing friction from buying television, which traditionally lacks the seamless tools of digital marketing. So even when it’s complicated to execute, we meet the challenge by auditing processes, maintaining integrations with inventory partners, and clear reporting.

Cadent’s vision has long been to enable our clients to convey their message in an addressable way, whether they’re inventory owners, content owners, advertisers, or brands. We’re strongly committed to bringing new technology and new companies into our portfolio to meet the challenge of using data and automation to achieve addressability across all platforms.

The industry wants to take things even further by bringing digital elements to video platforms, including workflow, data attribution, and reporting. There are challenges ahead, with so much information available through set-top box data, cookie collection, and cross-device identification on mobile, the currency has to shift to something more relevant to modern marketers—something tied more closely to business impact, so brands can measure the results of campaigns and relate them to actual sales and transactions.

The Next Generation of TV

We’re seeing a lot of companies using data in ways that haven’t been used before. This is a transformative time. Audience-based, addressable advertising is pushing the industry forward, and once the currency normalizes, a marketer will be able to find an audience wherever they are. New technology is already starting to automate and change the way we do business, and big data and analytics tools are helping free marketers and content creators from manual processes and the Excel sheets of yesterday so they can focus on what really matters.

In the age of digital, change is the only constant. That’s why it’s so important that the TV business doesn’t just evolve to meet current challenges; we have to actively anticipate and build for the challenges of tomorrow.

Cadent is uniquely positioned because of our deep industry roots and wealth of experience. We simplify the industry for clients with a remarkable degree of transparency, so marketers can easily see the effectiveness of spend and measure ROI. We’re constantly looking at new ways to innovate and apply data, and we’re leveraging digital methods to make TV seamless to buy and execute, and most importantly, prove business impact and ROI.

How Smart Strategy and Insights Ramp Up Movie Rentals

At one2one Entertainment, we serve multiple studios and more than 150 movies a year to various markets, so we have the scale to understand trends that studios would never be able to see on their own. Here’s some of what we’ve learned.

Previous behavior is the best predictor of future rentals.

We found that 92% of VOD rentals come from households who’ve already rented through their cable provider, regardless of that household’s affinity for a specific genre. It makes intuitive sense to target a horror movie to a household has indicated an affinity for that genre, but you’ll have much better luck targeting any movie to heavy renters since they’re the ones doing almost all renting. This finding surprised us, and it necessitates a huge mindshift on the part of studios.

Rentals need a completely different approach than theatrical releases.

We used to market movie rentals like we market theatrical releases–targeting people who watch movies on channels like TNT.  While these people do like watching movies, we found they’re not going to tune-away from a free movie to rent a movie On-Demand. Same goes for advertising rentals during major TV events. We have much more success advertising rentals in syndicated content. People are much more likely to tune away from a rerun of Friends to rent an On-Demand movie than they are to tune away from the season finale of their favorite show.

Free On-Demand is a valuable advertising tool for On-Demand rentals.

Existing renters are five times more likely to convert than those who’ve never rented, including those who rent free On-Demand content. People watching free On-Demand have overcome a major barrier to entry by indicating that they’re familiar with accessing the On-Demand portal. Ad spots on free On-Demand are usually fast-forward disabled, so we know people are much more likely to see them. In fact, we recently found that 79% of films advertised in free On-Demand had a positive effect on ROI.

These aren’t the kinds of insight studios can get on their own.

We’re able to track rental ROI for studios because of the scale we have. Operators won’t produce the data needed to fuel these campaigns unless it makes economic sense for them. The cost for a studio to do this kind of analysis with an MVPD for a single movie would be prohibitive. Since we work with most of the major studios, we’re able to pool movies from different studios to negotiate a price that works for all parties. Our relationships allow us to get data that shows which tactics contributed to rental conversions, and we’re able to share those insights back out with our valued clients.

Partnering with one2one Entertainment can give studios the insights and strategy they need to make the most of this substantial distribution channel.

For more on in-home advertising, get in touch.