TV Viewership is Changing in Hampton Roads

Is your ad strategy on course?

If you’re a business in Hampton Roads weighing your advertising options, traditional TV (broadcast and cable) continues to provide huge reach and impact. But how people consume various media, and more importantly how their video viewing habits are shifting, is essential for you to know to effectively plan where your advertising dollars should be spent.

Microsoft Word - proofed_TV Viewership is Changing in Hampton Ro

Nielsen numbers show that US consumers still watch over four hours of traditional (Nielsen calls it “live”) TV every day. But that number has dropped from four hours and 29 minutes per day in 2013 to four hours and 11 minutes over the past two years. The pace is precipitous and consistent. The amount of DVR viewing has held pretty steady, but the amount of time spent on smartphones has nearly doubled.

Three very important points to keep in mind here:

  1. The shift to online/streaming viewing is generationally driven. A recent report from ABC showed that 28% of TV watched during prime time by 18-34-year-olds is online streaming or video on demand, compared to 11% for those age 25-54. Microsoft Word - proofed_TV Viewership is Changing in Hampton Ro
  2. This shift will accelerate. Smartphones are already in the hands of 80% of US consumers, but the lion’s share of mobile online TV is viewed by only 20% of those folks. This is not an “80-20” rule that will stand. As network apps and “TV anywhere” gain awareness, that number will experience a hockey-stick effect. Add to that the fact that nearly 60% of households now have an Internet-connected TV, and the opportunities to stream video skyrocket.
  3. These are no longer individually unique media consumption behaviors. People don’t consume one medium at a time. Look around in a restaurant, airport, doctor’s office—or your own family room. Who is looking up, and who is looking down at their mobile device? Nielsen reports that 84% of smartphone and tablet owners use those devices while they’re watching TV. YOU NEED TO BE IN BOTH PLACES.

The graphs here are published data from Nielsen’s “Total Audience Report.” It’s a great deep dive to understand what’s going on in the world of media consumption. But to help understand what’s happening, and what will happen with TV viewership locally, I reached out to some local media experts for insight.

The bulk of ad spending for local broadcasters and cable still ties to traditional TV advertising: :05-:60 spots inserted into linear broadcast (that includes cable) programs. And, of course, the stakeholders feel that will continue. “Local newscasts (including weather, traffic and high school/college sports) remain some of the highest-viewed programming on local broadcast televisions in any market.” Says Doug Davis, president and CEO of WAVY. “Newscasts provide a daily, engaged viewer for local advertisers…a viewer who is watching the news…not DVRing it.”

Kari Jacobs, WVEC president and GM, agrees. “I believe TV viewing will remain strong largely due to locally produced news, live sports and big events (e.g., the Oscars). It will be interesting to see which (streaming) delivery methods (Netflix, Roku, etc.) will excel.”

But Gordon Borrell, CEO and president of Borrell and Associates and nationally recognized expert on local market media trends, is a bit more pragmatic. “The fact is, people are watching more ‘video’ than ever, but it’s the old model—broadcast TV—that’s in trouble. I wouldn’t recommend that a TV advertiser necessarily cut back TV. Rather, I think an advertiser needs to determine the appropriate mix of media available today that is needed to support whatever promotion they have at the moment.”

Local broadcasters, as well as Cox, have long offered digital advertising packages and online content to help you diversify your media mix and reach their viewers online. “We certainly recognize the impact digital has on traditional viewing patterns,” Jacobs adds, “and our digital options for content and advertising options reflect this change and will continue to evolve.”

But with the shift to streaming and on-demand viewing through Internet-connected devices, advertisers are clamoring for a way to measure their text boxvideo advertising investment that makes sense online and offline. That shift is underway. Sharon Fanto, vice-president of Cox Media, explains. “Most [advertisers] want to measure how they reach consumers with a metric of impressions rather than simply gross rating points (GRPs). Those impressions are found on multiple screens across multiple devices, which makes sense since consumers are spending more time with video on multiple devices. Our focus has to continue to be making it easier for our clients to reach consumers wherever they are, on whatever device they are using.”

This shift in planning and measurement from GRPs to impressions, cost-per-impression, and ultimately cost-per-conversion (sale) tied to your impressions are what ultimately open the door for effective cross-platform planning. Hopefully, all media reps, planners and buyers are headed in this direction because digital advertising options will drive it.

An impressions-based video strategy can level the playing field in comparing costs for reaching TV viewers in a mass broadcast audience vs. an individually targeted and streamed insertion online. Add to that the efficiency that real-time bidding (the ability to set budget limits on how much you are willing to pay for each individual impression) online can bring, and you have the ability to make your video advertising achieve results that you could never afford in a broadcast-only world.

Your online-to-broadcast mix percentage will vary based on your objectives as well. In Borrell’s words, “TV is the number one medium for branding. No one can touch it.” But if your goal is to drive online engagement, having at least a companion digital video strategy is vital. The Virginia Dental Association, in a statewide campaign that has been running for the past three years, has been able to increase traffic to a targeted page from 200 page views a month to over 500 A DAY by integrating a targeted digital video campaign. That’s how effective it can be.

Bottom lines:

1. If you are a local advertiser whose ad strategy is heavily leveraged in TV, and you are not already consistently and diligently deploying a SIGNIFICANT online video component to your strategy, you are behind the times.

2. If you’re are a local business that has not been able to afford TV advertising because of budget or geographic scope, you could be losing ground to competitors who have learned to geographically and demographically target video messages online to your prospects and customers.

Video advertising is king. It carries more emotion and credibility than any other medium. Consumers will find it wherever they go. More and more, they are going online with devices in hand. Your media mix needs to recognize that.

Do You Get This Stuff Yet?

confused 1The three simple elements of Programmatic Buying and Real Time Bidding

On a daily basis I’m asked by advertisers in Hampton Roads and beyond  to explain what these huge buzz words really mean. The ad industry is still clamoring for a sexier and simpler word than “Programmatic,” but my money says it will never happen. (I remember Cable’s battle cry from the ’90s: “Someone find a better name than Pay-Per-View!”) Once a clunky name sticks, it sticks.

The important thing to know is that this system of targeting, buying and tracking advertising is transforming the industry.

The Journal of Financial Advertising reports that more than 50% of financial brands utilize it within their media mix. Some reports have more than 70% of major advertisers shifting significant portions of their digital budgets to programmatic and online TV (video) buys.

So how can you break it down? Well first, if you’re a seasoned media technician working in this stuff every day and you never have a reason to explain what you do, STOP READING NOW. What follows will seem way over-simplified. But what follows is proven “light switch” wording that has helped folks, from the CMO to the front line, understand how this all works.

First, several definitions (there are other important ones, but let’s just start here):

Programmatic means that, instead of picking up a phone and calling a media rep at a network or publisher’s office, I’m using a computer platform to scan, plan and buy available ad inventory that’s listed on other computer platforms. As much as 98% of Internet inventory is available in this world.

Real Time Bidding means each impression is identified, bid for and placed by the same computers each time the viewer loads a page where the ad is served.

A Demand Side Platform is the technology that lets a human media buyer pull it all together—look out across all of the available inventory, target consumers, schedule buys and measure performance.

The following three elements have worked the best for me in explaining the basis of how it comes together:

1) Target People, Not WebsitesProg 1

Almost everything you touch today leaves some type of data-based thumbprint behind. That “Big Data” you keep hearing about is a compilation of billions of activities, affiliations, purchases, friendships, likes—you name it. It’s collected, sorted and made available by data companies for programmatic planners to build profiles of targets that advertisers want to reach. Your “data thumbprint” is embedded in your browser, viewer or app. The Demand Side Platform sees the thumbprint or profile of the person and only serves your ad when it sees your target.

2Prog 2) Bid for Each Impression in Real Time

When the media buyer set up the plan, he determined how much he was willing to pay to serve your message to each person who matches one of your customer profiles. If the market is low, you pay less. If competition is high, you will have to pay more. It can vary by time of day, location of the ad, industry, DMA, zillions of variables. And the value you bid can change as well. Bid higher for customers that have bought from you before, or who live closer to your restaurant. The bids are entered into and managed automatically by the system, so it all happens in nanoseconds.

3) Continuously Optimize and Improve Every CampaignProg 3

The system tracks and reports every activity: ads served where and when; who clicked to where and when; how much impressions and conversions cost. Every day, technicians are sitting at desks looking at what worked well and shifting the budget to do more of it. They test and find what doesn’t work well and throw it out. Day after day they work to improve bid pricing, lower conversion costs and provide up-to-the-minute reporting.

Programmatic buys are placed across websites, video platforms and mobile apps using all sorts of static, animated and full-motion video messages. The system lives mostly in the online world today, but programmatic technologies are moving quickly into more traditional media—television and radio in particular. The ability to target a TV ad to an audience of one isn’t far away.

One thing is for sure: The more sophisticated advertising gets, the more we need to find ways to explain what’s happening. Hopefully this version helps. If so, pass it on. If you’ve got comments or additional thinking, please add it. Love to hear from you!

You’re gonna see an ad anyway,

 it might as well be something you like…Marketing Hampton Roads

One big debate these days in advertising circles (of course there are many) revolves around privacy, and just how much we as advertisers know about our prospective targets.’s recent wishy-washiness about sharing consumer privacy information helped fuel the conversation. While I’m not a fan of privacy invasion or over-the-top hacking and snooping, I do fall firmly on the side of the statement above. I know I’m going to see ads on websites, in apps, in TV programs and ahead of that tile-grouting video I just searched for. My sense is, it might as well be an ad for something I give a hoot about as opposed to something totally unrelated to my world. In fact, for me, the more relevant the better. And that’s exactly how it’s supposed to work.

 Three ways to see who’s watching you online.

If you’ve ever wondered who’s watching you, or who knows what about you, it’s not hard to get a good view. Just about everywhere you go online…no matter what platform…you’re picking up cookies or in some way leaving a trail of data. Here are three ways to get a glimpse of when someone’s watching and who knows what:

1.)      Website trackers

Ever wonder who’s lurking behind the browser? Who’s warehousing data every time you mouse over a picture or click a link? Fly over to Ghostery and click on the button that says “Add to (whichever browser you’re using).” After you do you’ll be treated to a magical looking-glass on each page that looks something like this:Ghostery

The list will change from page to page and site to site, but it shows you who the data aggregators are that have placed pixels and are collecting data on that page, as well as the ad exchanges and traders that are serving ads on that site. Clear your cookies if you want, but every time you come back they will still be there. Your only choice in thwarting them is to block cookies…but remember, you’re gonna see an ad anyway…

2.) What Facebook thinks of you

Those guys at Facebook are so smart, and transparent, that if you want to know why you’re seeing a certain ad, all you have to do is ask. Not only that, if you’re not seeing what you want, you can actually add to your preference list. Here’s how:

a.     When you see an ad on Facebook, hold your mouse over the upper right hand corner until an X appears. Click on it, then click on “Why am I seeing this?” Another box will pop up with the answer. Could be you’re the right demo. Could be you like to do certain things or go certain places. Or it could be a lot vaguer, like “this company wants to reach people like you.”

b.     Within the second box, click on “Manage my preferences.” Within the box that opens you can see everything Facebook thinks it knows about you relative to the ads you see. Click on each content area to see individual data tags relative to your content, profile or activities within the site. Some of it will be dead wrong, some right on the money.

c.      If you think Facebook has it wrong, or is missing some things, you can actually customize this profile. You can delete individual preferences, or, at the top of the page is a box that allows you to add preferences. In fact, you can do this whole exercise on practically any ad on any website. Click on the arrow or box in the upper right corner of an ad, then look for the link to manage your preferences. Rather see ads about Disneyworld? The NFL? Here’s your chance. Because remember, you’re gonna see an ad anyway…

3.)   What the Shadow knows

On the creepier side, try out the Digital Shadow and let it build your virtual profile. The site, which is really a clever app built by Ubisoft to market the game Watchdogs, lets you log in using Facebook and then builds a rather eerie, contrived picture of you and your life using your profile data. With claims like, “We know who you are,” “We know who you care about,” “We know how to find you” or “We know what you’re worth,” you can’t help but feel paranoid. If you’re like me, you’ll find quite a bit of it laughable (yeah, try looking for me in the Bahamas). But the idea of getting a glimpse at how data trackers may see you is interesting.

Bottom line is that advertising will continue to become, more and more, a technical business. As an advertiser, you want to know as much about your potential customer as possible. Data trackers and online profiles help you do that, help make the online user experience more relevant, and I believe make it more efficient for all of us. So go ahead, serve me ads for SCUBA diving and sport fishing off of Freeport. Because, hey, I’m gonna see an ad anyway…

The Technology Is Pretty Simple

 It’s the Stuff That’s Complicated

Just ask a digital media buyer.Chevy Guy

Technology and stuff sure make us marketing executives sweat. The whole world found that out firsthand when Chevy’s Rikk Wilde crashed the MVP party with his now-famous #technologyandstuff description of Madison Bumgarner’s new Chevy truck. And of course it wasn’t the technology or the stuff that had Wilde beading up with sweat, it was the national stage.

But the Chevy exec and lifelong baseball fan drew national attention to a big topic, one the digital advertising and media world grapples with daily: finding a way to make high-tech advancements simple enough for everyone, even really high-powered people like marketing execs, to understand.

In local market advertising, even a fairly big local market like Hampton Roads, VA, advertisers grapple with the question of how, when and where to shift marketing dollars into digital media, and how to know when that strategy is working. While pay-per-click advertising can be pretty straightforward if the consumer is properly motivated to click, digital display advertising has fallen out of favor. Measuring response has been difficult, primarily because of the way it has been bought and tracked.

Enter #technologyandstuff.

The highest-tech, most cutting-edge system and tool within digital media buying is a sophisticated system called a Demand Side Platform (DSP), which allows an operator to buy media programmatically and bid on digital advertising inventory in real time.

Whew. See? Sweat beads.

You can read a great blog describing some of the DETAILS of the stuff that makes up programmatic buying here, but let me tell you that what the technology does is make sure that the advertiser’s ad only shows up when a targeted customer is actually surfing. And the advertiser only pays what he or she has bid for that targeted customer. And then all this stuff measures what is working best, and the buyer tells the technology to do more of that. The same stuff measures what is not working so well, and the buyer tells the technology not to do so much of that.

While I don’t exactly expect you to follow all of that particular technology and stuff explanation, I can tell you that as an advertiser you should gain an understanding of programmatic buying.

In one form or another, it will become the way advertising is bought and sold going forward.

It is automated advertising buying compared to manual buying, and it will drive the efficiency and measurability among all types of advertising. And that includes traditional forms like broadcast and cable, outdoor and print.

Even some of largest local advertisers will admit that, although they have a very diverse media mix and an ongoing focus in driving social as well as real-life connections to their brand, the plans are not very well coordinated, and they lack the ability to measure how effectively their digital advertising is working. Technology is going to continue to open up more media mix opportunities. Find someone to help you understand the stuff, and you’ve got the secret ingredient to make it work.