The transparent TV consumer is getting closer
Thanks to a new measurement method, product advertising on TV can be placed more precisely than ever before.
Media planners in the U.S. have access to new data that advertisers hope will help them reach TV viewers in a far more effective way than before: Data that allows them to analyze exactly what their return on investment (ROI) will be. A few months ago, TRA, a New York-based market research firm, launched new services that allow corporate clients, media companies and advertising agencies to take a far more targeted approach than before.
The novelty is that the TV usage behavior of individual households can be compared with their actual shopping habits, so that product advertising can be precisely tailored to their respective needs. TRA collects TV usage data from 1.5 million households that either use a Tivo digital video recorder or have a cable connection. With the help of the corresponding set-top boxes, a record is kept of exactly which programs and commercials are watched. This is then used to compare the purchasing data of 58 million so-called Frequent Shopper Cards, which are microchip cards from major retailers such as Wal-Mart or A&P that record every single product that is purchased. These cards contain demographic data such as the zip code of individual customers, but not their names or addresses.
Up to 176 percent increase
According to the company, TRA customers who took part in this program and changed their advertising strategy accordingly saw an increase of up to 176 percent in the perception of their advertising clips. One group of buyers the companies are particularly targeting are so-called swing purchasers, i.e. consumers who are not necessarily committed to a particular product but are willing to be persuaded by a competitor.
TRA's customers so far include television networks CBS and Discovery, a cable company, a major consumer goods company, and advertising groups Mediavest and WPP. "Set-top box data is the future of our business," judges David Poltrack, media researcher at CBS. "TRA is leading the competition in this regard." The company is currently preparing its expansion into Europe, which includes the German-speaking advertising market.
One consequence of being able to use such precise measurement methods is that TV broadcasters are gradually moving away from the usual focus on the target group of 18- to 49-year-olds. For a long time, the advertising industry placed particular emphasis on a younger audience, assuming that consumer habits were formed at a young age and would subsequently remain that way forever. But TV networks are gradually shifting to the so-called "big tent" strategy, which means that a TV program should appeal to as broad an audience as possible, such as the entire family. Leading the way is leading network CBS, which has been at the top of the ratings scale for years with broad-based series like "CSI," "The Mentalist" and "Lost." "Our philosophy is not limited to a single demographic," CBS CEO Leslie Moonves said in a recent interview. "It's ironic that we now rank number one in every demographic with that strategy."
The CBS recipe for success will become the standard formula in the coming television season, as competing networks have also ordered numerous new pilots in recent weeks that resemble the makings of CBS merchandise. "The other networks are getting closer and closer to the CBS formula," says Joe Adalian, television critic at trade magazine TV Week. "So there will be heaps of well-made shows, but with few new creative elements."
Gerti Schön
The novelty is that the TV usage behavior of individual households can be compared with their actual shopping habits, so that product advertising can be precisely tailored to their respective needs. TRA collects TV usage data from 1.5 million households that either use a Tivo digital video recorder or have a cable connection. With the help of the corresponding set-top boxes, a record is kept of exactly which programs and commercials are watched. This is then used to compare the purchasing data of 58 million so-called Frequent Shopper Cards, which are microchip cards from major retailers such as Wal-Mart or A&P that record every single product that is purchased. These cards contain demographic data such as the zip code of individual customers, but not their names or addresses.
Up to 176 percent increase
According to the company, TRA customers who took part in this program and changed their advertising strategy accordingly saw an increase of up to 176 percent in the perception of their advertising clips. One group of buyers the companies are particularly targeting are so-called swing purchasers, i.e. consumers who are not necessarily committed to a particular product but are willing to be persuaded by a competitor.
TRA's customers so far include television networks CBS and Discovery, a cable company, a major consumer goods company, and advertising groups Mediavest and WPP. "Set-top box data is the future of our business," judges David Poltrack, media researcher at CBS. "TRA is leading the competition in this regard." The company is currently preparing its expansion into Europe, which includes the German-speaking advertising market.
One consequence of being able to use such precise measurement methods is that TV broadcasters are gradually moving away from the usual focus on the target group of 18- to 49-year-olds. For a long time, the advertising industry placed particular emphasis on a younger audience, assuming that consumer habits were formed at a young age and would subsequently remain that way forever. But TV networks are gradually shifting to the so-called "big tent" strategy, which means that a TV program should appeal to as broad an audience as possible, such as the entire family. Leading the way is leading network CBS, which has been at the top of the ratings scale for years with broad-based series like "CSI," "The Mentalist" and "Lost." "Our philosophy is not limited to a single demographic," CBS CEO Leslie Moonves said in a recent interview. "It's ironic that we now rank number one in every demographic with that strategy."
The CBS recipe for success will become the standard formula in the coming television season, as competing networks have also ordered numerous new pilots in recent weeks that resemble the makings of CBS merchandise. "The other networks are getting closer and closer to the CBS formula," says Joe Adalian, television critic at trade magazine TV Week. "So there will be heaps of well-made shows, but with few new creative elements."
Gerti Schön
Series like "CSI," "Lost" or "Mentalist" focus on several target groups. They also benefit from the newly developed measurement method.
