Unlocking Linear TV’s Untapped Potential with Data Driven Buying

Nielsen recently released their Ad Supported Gauge and Gauge reports that broadcast and cable make up nearly 60 of time spent in ad supported content and by my estimate nearly 70 of all ad availsTransacting linear using advanced audiences also known as data driven linear DDL has been around for over 15 years driven by advancements by agencies publishers measurement and marketing technology companiesA major step forward for transacting using DDL took place in 2022 when VideoAmp data started being used by agencies and publishers The scale of the VideoAmp data 40 million identities large helped democratize DDL by making that capability available for advertisers with more narrow targets than what a 40000household panel could support That sample size allows publishers to forecast and steward DDL buys with far greater precision and leverage lower rated programming to drive greater yield increased target GRPs for advertisers This point is especially important with the continued fragmentation of audiences in linearFor this upcoming broadcast year when Nielsen enables advanced audiences with their Panel ampamp Big Data service the market will have two options for DDL using big data providersBut today heading into the 20252026 upfront while over 75 of national GRPs are controlled by publishers enabled for DDL only about 4 of national TV ad spend uses publisher optimization capabilities for DDL The other 96 are bought based on traditional agesex even if they are planned based on advanced audiencesOne thing that is clear from the confluence of events the TV upfront market happening at the same time there is massive uncertainty in the economy due to tariffs and the Big Beautiful Bill being considered in Congress is that advertisers are moving dollars to market channels that provide direct measure of outcomes Data driven linear allows advertisers to leverage linear TVamp8217s benefits while taking a giant step forward in connecting with the audiences that drives salesWe decided to analyze the amount of consumer spending for top verticals that advertisers may be missing by not leveraging DDL at greater scale At datafuelX based on our experience optimizing nearly 200 campaigns we see that publishers are able to generate increased target DDL impressions through optimization This increase ranges from 510 for publishers with more narrow portfolios fewer networks and around 30 for publishers with broader portfolios more networksWe used ROAS norms from Arima for linear TV and modeled the increased target audience impressions that each category would generate from optimization and how that translates to increased consumer salesFocusing on seven advertiser verticals Pharma QSR Technology ampamp Telcom RetailApparel CPG Automotive and Financial Services we found that these verticals could generate an additional 31million per year in sales by doubling DDLamp8217s share and additional 62 million by tripling DDLamp8217s share and an additional 280 million by leveraging DDL for all spend with DDL enabled publishersWhen we look at the opportunity vertical by vertical we see that the increased sales opportunity is as large as 74 million for doubling DDLamp8217s share of spend as large as 147 million for tripling DDLamp8217s share and as large as 100 million if DDLamp8217s share was equal to the share of GRPs that DDL enabled publishers representWe often hear that procurement and historical agesex CPM benchmarks are a major reason for not moving away from agesex buying But in the new world where we have data at scale which allows us to accurately forecast optimize steward and deliver deals where DDL campaigns can be executed as efficiently as agesex deals are advertisers willing to sacrifice the increased consumer sales that more DDL will provideAt a time when there is so much uncertainty in the US economy leading advertisers to move dollars to media that they can directly tie to sales response leveraging DDL allows advertisers to both take advantage of the known benefits of linear while driving higher ROI from that linear spendPosted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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Unlocking Linear TV’s Untapped Potential with Data Driven Buying

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Howard Shimmel

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