BIG, BIG DATA combined with addressable program promotions is a recipe that drives targeted audiences to view programs on channels.
- That’s the key Takeaway from a Case Study shared by Cambridge Analytica (CA).
- The Good News: It means higher ratings, stronger revenue streams, and more money for programming.
- CA’s giant database captures 2,000 – 5,000 characteristics on 230 +/- million U.S. adults.
- The company’s two units are:
The Case Study Client: A U.S. Network
- CA’s client is a small- to mid-size U.S. cable / satellite channel.
- It is a minnow in an ocean of video entertainment options including channels, SVOD services, YouTube, and much more.
- The network’s challenge, and it’s a big one, is to establish awareness of its programs, and then to have viewers tune-in.
About the Pilot Campaign
- The campaign addressed a multi-episode series.
- The client sent a list of its known viewers to CA Commercial.
- CA’s data scientists analyzed this list and then matched it to their enormous database.
- The list was used to model out a target audience of homes with people predicted by CA to be most likely to respond to advertising for the new show.
- The modeled target audience segment was further split into sub-segments based on the personalities of the people within the homes.
- Behavioural psychologists then drafted a briefing pack that provided guidance on the messaging to be used to target each of the personality-driven sub-segments.
- The network created promos for the show based on the strategies provided by the psychologists.
- Each target audience segment had a commercial assigned to it that was specifically designed to increase tune in to the series among the homes in the particular segment.
- Four promos were created for the test.
- CA’s TV and digital teams activated an ad campaign that included viewing by desktop, mobile, connected and addressable TV.
- Ads were sent to specific target audience segments via digital and addressable TV advertising with zero wasted impressions.
- Addressable TV is data-driven and allows ads to be sent to specific homes.
- There are currently around 58 million addressable U.S. TV homes.
- The findings are based on a panel of 2.7 million smart TVs.
- Ad detection for TV was electronically and passively collected using automatic content recognition technology built into the TVs.
- Digital ad exposure was collected via a digital sync.
- Tune-in to the show and the network is based on data backhauled from the smart TV panel.
Uplift & Conversion
Source: CA Commercial
How To Read the Chart
- The bars in the above chart show tune-in conversion rates for homes that were not exposed to advertising (light blue) and for homes that were exposed to advertising (dark blue).
- Tune-in conversion rates reflect the number of smart TVs that tuned to the cable TV show expressed as a percentage of either smart TVs that were exposed or were not exposed to ads.
- The numbers above the dark blue bars are uplift multiples; e.g., an uplift multiple of 4 times means that the smart TVs that were exposed to advertising tuned in at four times the rate of the smart TVs that were not exposed to ads.
- The type of ad exposures defines the sets of bars.
- The dark blue bar:
- In the 1st set of bars: it represents the tune-in conversion rate for homes that were exposed to ads on desktop and mobile and not TV.
- In the 2nd set: it represents the tune-in conversion rate for smart TVs that were exposed to ads delivered via connected TVs and addressable TV but not desktop or mobile.
- In the 3rd set: it represents the tune-in conversion rate for smart TVs exposed to ads via connected TV or addressable TV and ad exposure by desktop or mobile is not excluded.
- In the 4th set: it represents the tune-in conversion rate for smart TVs exposed to ads via desktop or mobile and ad exposures from TV are not excluded.
Findings: Up To 50X Uplift
- The homes exposed to the ads tuned into the show at 7 times the rate of the homes that were not exposed to the ads.
- The highest uplift was generated when homes were exposed to both TV and digital ads.
- In these homes, the uplift was as high as 50 times.
- Conversion rates were higher for some segment and creative combinations than others.
- It was possible to produce these insights while the campaign was still in flight, and to make changes that conserve costs or improve the efficiency of the campaign.
- A key finding was there was little benefit to running 30 second promos rather than 15 second spots. The latter are half the cost when used for TV.
- This campaign is a window into the present, not the future, for networks, SVOD services and the largest-scale producers.
- The secret sauce is a combination of:
- BIG, BIG DATA
- Highly-targeted marketing and creative
- A mix of TV and online delivery of promo spots
- Plus addressable TV’s.
- These solutions are only affordable now for large-scale players.
- But I’m sharing them now because it is important for producers and investors to closely follow developments in addressability and get into the conversation.
- And BTW, thanks to CA Commercial for sharing their Case Study.
- They are not the only firm in the field, and the major networks are all building out their own massive data bases.