Television Update, Spring 2020

Television Update, Spring 2020

The Outlook for Data-Driven Linear TV

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About This Report
COVID-19 has dampened 2020 TV advertising—however, data-driven linear (DDL) and addressable TV stand ready to scale as economic conditions eventually return to normal.

Executive Summary

Data-driven linear (DDL) TV advertising is looking to hold steady during the COVID-19 pandemic, while addressable TV test initiatives portend expansion of ad inventory to be realized in 2021.

How is the coronavirus pandemic affecting DDL TV advertising?

COVID-19 has softened advertising demand, including for TV. Earlier this year, there was strong evidence that the volume of DDL TV ads would dramatically increase as marketers pursue more ways to bolster advertising effectiveness. At least two scenarios will be at play: Advertisers will bargain-hunt standard linear ad inventory in lieu of paying DDL premiums; and those who have reduced budgets may deploy DDL to spend more selectively.

How will DDL TV advertising achieve future scale?

Future scaling of DDL TV advertising requires more standardization of executional processes across buyers, sellers and data firms. OpenAP, a consortium of four TV network groups, has streamlined the processes for media agencies to simultaneously execute these types of campaigns across multiple networks.

What progress is being made on testing sources of expanded addressable TV ad inventory?

Two initiatives, Nielsen and Project OAR, have been launched to test commercial overlays on smart TVs during the 14 to 15 hourly minutes of national ad inventory.

Live campaign testing will involve monitoring the rate of successful on-screen rendering of addressable ads as well as workflow processes such as target selection, trafficking and creative optimization.

The COVID-19 lockdown has delayed in-market testing until the latter part of 2020.

WHAT’S IN THIS REPORT? This report covers the most recent outlook for DDL TV advertising and updates on testing of new addressable advertising sources.

KEY STAT: After shelter-in-place orders were enacted, US consumers increased their time spent with TV in 2020. We have revised our forecast for time spent per day with TV upward to 229 minutes, a 9.3% rise over 2019.

Here’s what’s in the full report

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2charts

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16expert perspectives

Insights from industry and company leaders.

Table of Contents

  1. Executive Summary
  2. An Overview of Data-Driven Linear TV Advertising
  3. Addressable TV: In Search of More Inventory
  1. Key Takeaways
  2. eMarketer Interviews
  3. Sources
  1. Media Gallery

Interviewed for This Report

Kelly Abcarian
Nielsen
General Manager, Nielsen Advanced Video Advertising
Interviewed March 25, 2020
Scott Brown
Nielsen
General Manager, NielsenTV and Audio Measurement Products
Interviewed March 25, 2020
Jane Clarke
CIMM
CEO, Managing Director
Interviewed February 21, 2020
Denise Colella
NBCUniversal
Senior Vice President, Advanced Advertising Products and Strategy, Advertising Sales
Interviewed February 21, 2020
Pete Doe
clypd
Chief Research Officer
Interviewed May 5, 2020
Ethan Heftman
A+E Networks
Senior Vice President, Precision and Performance Advertising Sales
Interviewed February 18, 2020
Bob Ivins
Ampersand
Chief Data Officer
Interviewed March 23, 2020
David Levy
OpenAP
CEO
Interviewed March 20, 2020
Harish Narasimhan
Adcuratio Media Inc.
Founder and CEO
Interviewed March 23, 2020
Jamie Power
Cadent
Chief Operating Officer for Addressable, Head of Analytics
Interviewed March 23, 2020
Tracey Scheppach
Matter More Media
CEO and Co-Founder
Interviewed April 6, 2020
Aleck Schleider
Amobee
Senior Vice President, Client and Data Strategy
Interviewed February 18, 2020
Lyle Schwartz
GroupM
Former Chief Integration Officer
Interviewed March 13, 2020
Philip Smolin
Amobee
Chief Strategy and Revenue Officer
Interviewed March 9, 2020
Geoff Wolinetz
FreeWheel
Head of Sell-Side Revenue
Interviewed April 27, 2020
David Wyler
IRI
Vice President, Advanced TV and Digital Video
Interviewed March 11, 2020

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authors

Gerard Broussard

Contributors

Ross Benes
Analyst
Chuck Rawlings
Researcher
Yoram Wurmser
Principal Analyst