Long tail: 80% of national TV ad inventory occurs on shows with ratings below 0.5 meaning that most of the ad impressions occur in the long tail.
Advanced TV targeting benefits both sides:
1) Buy side — Discovery of additional inventory that reaches target audience.
2) Sell side — Ability to sell long-tail inventory at a higher CPM by showing effective cost to reach target audience.
The three big innovations in video advertising are:
1) Cross screen measurement
2) Cross screen planning/buying
3) Audience buying
Roughly 10–15% of linear TV advertising is transacted currently against customer data. Most of the focus is on the shift to addressable advertising for TV, but the bigger opportunity is combining the scale of linear TV optimized with customer data.
Flashback #2: Fixing TV’s Demo Obsession
Flashback #3: TV networks race into data-based ad sales
Addressable TV ad spending (% of total):
1) 2015 — $720M (1%)
2) 2016 — $1.5B (2%)
3) 2017 — $3.4B (5%)
4) 2018 — $6.7B (9%)
Quote from Chris Ripley — CEO @ Sinclair Broadcast Group:
“I think there will always be a certain amount of inventory that is non-targeted, because some advertisers just want to blanket the country…But I think a big portion of the inventory, especially if it’s technically capable of being targeted, will be targeted.”