Who would have thought terms like segmentation analysis, customer up-sell, lifetime value and incremental revenue growth would be terms applied to the broadcast medium. With the advent of viewer databases and audience behavior, traditional broadcast executives can begin to mine critical audience viewer data and behavior to achieve significant levels of audience targeting and measurement.
Like the old saying that England and America are ”two nations divided by a common language,” broadcast advertising and direct-to- consumer marketing are related disciplines that can’t seem to relate to each other. While direct marketing can lack the audience reach and emotional connection that are broadcast video’s strengths, Reach and Gross Rating Points lack the firm connection to marketing efficiency and customer value that target segment response lift and incremental revenue per customer provide. Where is the common ground to be found?
In our work with leading video content providers, we are seeing the future of broadcast advertising take shape through viewer-level behavioral data and analytically driven marketing. With viewer level data and database analytic tools, broadcasters can offer a compelling business case to advertisers for segment based video targeting across screens to close the gap between reaching an audience and reaching the most valuable audience segments efficiently.
A well executed data strategy gives you the information you need to be in control of your marketing and to manage the cost of your data investment to maximize its value. Data driven marketing fueled by viewer databases – linked to insights on viewer segments, media consumption and purchase behavior – creates the bridge between the message and the actions it drives. This ability to precisely connect ad spend to viewer engagement and behavior segments has proven itself in-market with test vs. control studies that produce 25-35% higher sales rates and viewer engagement behavior.
But perhaps the most compelling outcome of combining viewer databases with behavior are the insights that clarify the value that results from a specific segment across multiple screens – traditional TV, online video, and mobile/social platforms. As the potential partnership options and content licensing landscape evolves, the knowledge of the current and potential value of a viewer segment is critical to striking strategic agreements that safeguard current ad revenue and fairly compensate content owners as viewing behaviors evolve.
Based on our experience in thinking through the critical issues and strategic decision drivers on marketing data strategy, we believe the right place to start is to assess your viewership data strategy maturity to quantify the strategic value of enhancing your viewer data. In a recent study for a leading content distribution partner we were able to identify and recommend specific investments in viewer data and ad sales tools to capture 30% more revenue from existing viewer relationships.
In summary, today’s rapidly evolving video consumption environment is upsetting long-held beliefs on how best to capture the value of your relationships with your viewers. Making sense of the opportunities and pitfalls in the emerging multi-screen, multi-partner video world requires a robust ability to use viewership data strategically. A deep understanding of viewers, their choices and preferences can make the difference between seizing opportunity and ‘losing it in translation.'