Audience Targeting, ROI Draw Advertisers to Digital Video
The typical media relationship: I want to see the shows, they want to interrupt with ads.
So our goals are not in alignment.
The tension that comes from misalignment can work for a while, but it’s when alignment kicks in that the enterprise really scales.
When a viable alternative comes about, the misalignment begins to break down.
The fact that the Nielson ratings continue to be used to set ad rates, and influence decisions about which television shows are renewed and which are cancelled, is just baffling to me.
Even more baffling is that even though the Nielson ratings can (and do) track recordings on DVRs, such as TiVo…the networks choose to exclude that data.
If you want to make educated decisions, using all the available data will help you to make better decisions. This would include all viewings, recordings, downloads, and rentals to know how popular a show is.
Let’s say that hypothetically I am an network executive at A&E, and I have renewed “The Walking Dead” for a second season, set to begin in October 2011. In 2010 this show had an average viewership of a little over 5 million people, making it (along with Mad Men) the most watched shows ever on A&E.
So if I am selling ads for 2011, should I use that 5 million figure…or should I look into how much social media, DVD sales, iTunes downloads, etc have further increased the viewership of this show?
I’m no network executive, but personally I would be building a large online campaign to get people interested in Season 1, and build up the Season 2 premiere as a “major event.”…and I’d hope to be able to charge more for ad time that A&E ever has before.