2013 promises to be the most innovative year in TV Advertising.
Concept Television Studios will focus on the roll out of its tried and tested analytics tool CAIT as part of the biggest year of innovation in TV Advertising. But why is the traditional business of TV advertising changing?
Facing facts – austerity, the economy, the decline of the highstreet and the continued growth of on-line sales.
It’s essential we realise that the way we sell to consumers has changed. Major highstreet brands such as Comet closed their doors for the last time with retail administrations up 6%, and many others existing day-to-day in a serious state of distress. As expected, highstreet retailing saw an overall decline year on year during the Christmas period, with companies seeing fantastic performance increases on-line.
“Showrooming” – the term coined to describe the act of visiting a shop to ‘touch’ a product, then buying it on-line was an activity carried out by a quarter of UK consumers. Furthermore, web based retailers not only avoid expensive highstreet rent bills and associated costs, they also are far more aware of their expenses and activities.
More than ever before, if business are to survive 2013, they must change some of the fundamentals of their business, now.
In order to survive, retailers must compete with on-line only companies. They need to get a tighter grip on the reality of modern business – and this is why TV advertising will change in 2013.
Cut the waste with meaningful performance metrics.
Any business with an extensive and learned on-line marketing activity expects to see performance metrics; this is where TV Advertising will, for the first time, come in-line with the kind of accountability seen with on-line advertising tools.
TV agencies had traditionally reported campaign performance using the far out-dated approach of the ‘how many people saw my TV ad’ (tv terms: Impacts / tvrs) which in internet terms is a low priority statistic labelled “impressions“. In 2013, advertisers will expect TV agencies to report conversion rates and costs, which in internet terms is the most important statistic labelled CTR (Click Through Rate).
Probably the most powerful tool in TV Advertising, CAIT Analytics™, developed by Concept Television Studios Ltd will see a massive growth in its use and development during 2013. CAIT can provide CPR (Cost Per Response) metrics for TV Schedules. Furthermore, CAIT’s analytic tools allow for comparison of data in NVM (Narrow View Metrics) terms. This will be behind much of the innovation both from the perspective of TV Media Planning / Buying and in terms of long term creative strategy.
What are NVMs / Narrow View Metrics™?
Previously, TV advertisers would expect a BARB Report detailing viewing figures from a sample of the UK’s population. From this data, the agencies and advertisers could monitor the strength of the buying strategy against the advertiser’s overall marketing strategy. As such, performance measurements related only to how well the media buying had delivered on the marketing departments idea of the target consumer – not actual sales.
The relationship between media scheduling and sales responses has been deliberately separated. Whilst this attitude allowed TV advertising to continue for years without actually being accountable for business performance, it also allowed the more directly accountable advertising medium of the internet to become established and steal traditional TV Advertising budget.
NVMs, the kind provided by CAIT, enable advertisers to cross reference performance and scheduling metrics in a way never seen before within the TV advertising industry. By knowing not only who, but when, where and why the most cost-efficient responses from TV advertising occurred, advertisers, marketing departments and agencies can bring their marketing strategies up-to-date. This approach cuts financial wastage and dramatically improves TV media buying based on physical schedules and actual responses!
When will the innovations become available and should I take advantage of them?
If you currently advertise on TV, now is the time to demand more from your agency and shop around for a response based TV Media Plan. Concept TV will be pleased to discuss your current activity with you and identify appropriate means of response tracking. If you do not currently advertise on TV, then now is a brilliant time to get the lowest prices – for the most responsive and accountable TV Media.
Embrace the innovations early and get the competitive edge!
You can request a free quotation for TV Advertising based on new innovative buying and planning techniques by calling 0203 002 9242, by emailing email@example.com or by requesting a free no-obligation quote at www.ConceptStudios.co.uk