Leading MSO Discovers Household Addressability Can Increase Conversion by 70%
Challenge: An MSO commissioned a study to link set-top box, subscriber, and campaign data to better understand how much impact targeting has on conversion rates.
Opportunity: Visible World conducted a study across 144 campaigns over 18 months using a single-source level analysis that combined campaign, subscriber, and set-top box data. The study compared conversion rates between viewers who received “on-target” messages, or messages for products for which they were eligible, versus viewers who received “off-target” messages, which featured products the viewer already had or could not receive. Out of the millions of impressions, less than half of all impressions were deemed to be on-target, revealing a huge opportunity for more relevant advertising.
Results: Across the 144 campaigns examined as part of this research study, overall conversion levels ranged from nearly zero to a high of just under 8%, meaning that that nearly 8% of the subscribers exposed to that particular campaign acquired the featured product within 90 days of their last exposure to the campaign. The ability to link STB, subscriber and campaign data to understand whether cross-channel campaigns are on-target helped reveal an important finding. While conversion rates varied greatly across campaigns, results for on-target subscribers were on average 70% higher than conversion across all subscribers reached by each campaign.
Traditional, non-targeted advertising fails to reach its intended audience to a startling degree. When properly targeted at a household level, conversion rates soar. The best way to increase results is to deliver ads to the most relevant audiences.