24 June 2014 | Blog
Randall Beard had an interesting article, “5 Game Changes in Advertising Effectiveness,” on some of the converging changes in marketing today. He weaves together a number of trends, especially focusing on how the increase in available audience data and the speeding up of the marketing cycle are changing the ways that ads are planned, bought, and targeted. Perhaps the most telling point is that
audiences won’t just be bought in real time, they’ll also be bought for sales impact.
Until recently, the best way to plan TV was around reach, using GRP’s. But as he notes, advertisers are increasingly interested in “effective reach” and “effective GRP’s”. It’s not enough to just reach viewers; advertisers want to reach viewers who are actually potential customers. Today’s wealth of targeting options make getting effective reach far easier than it’s ever been before. We now have the ability to link consumer behavior to program viewership, buying propensity to geographic location, and even ad placement to conversion rates. Add automation that enables next-day turnarounds on ad placement, and this wealth of data becomes actionable.
So what changes are we seeing? Advertisers are now reaching specific audiences. They’re responding to changing data and market conditions with new orders for the very next day. And the nature of the conversation is changing, as it becomes possible to measure and increase the effectiveness of TV ads. The purpose of advertising, in the end, is to drive sales, both now and in the future. With today’s data-based decisioning and automated execution, increasing that impact is easier than ever before.