Why CMOs Should be Paying Attention to Convergent TV If you're a CMO, there's a good chance you've been hearing a lot about "Convergent TV" lately. But what is it?
And why should you care? In short, Convergent TV is merging digital audience targeting techniques with linear TV content into one balanced, closed ecosystem that aims to eliminate the open market of ad buying and selling, creating the most optimal ad exchange. Sounds great so far, right? And it is! But some wrinkles still need to be ironed out before it can truly become the game-changer it
has the potential to be. Here's everything you need to know about Convergent TV so that you can make an informed decision about whether or not it's right for your brand. Convergent TV is the brainchild of a group of media companies that came together with the goal of simplifying the complex and often confusing world of digital advertising. The idea is to create a unified platform where all forms of TV
content (linear, digital, etc.) can be bought and sold in one place using a single currency. This would eliminate the need for brands to buy separate ad packages for each type of content, making TV advertising simpler and more efficient. One of the main benefits of Convergent TV is that it would allow brands to target their ads more precisely than ever before. Using data from connected devices, Convergent TV would give brands the
ability to target specific households with tailored messages based on their viewing habits, interests, and demographics. This would allow for much more customization than is currently possible with traditional linear TV advertising. Another benefit of Convergent TV is that it would help brands reach cord-cutters and cord-nevers—two groups that have been notoriously difficult to target with traditional TV ads. By offering a unified
platform for all forms of TV content, Convergent TV would give brands the ability to reach these audiences through digital channels such as streaming services and social media platforms. There's no question that advertising is in a state of flux. With the rise of ad-blocking software and the impending death of the third-party cookie, many brands are struggling to reach their audiences online. But there's one silver lining in all of
this: TV. Thanks to relationships between ad-tech vendors and digital TV providers, targeting is based on data like IP address and not proxies based on cookies. This means that TV is in a much better position to take over advertising in the coming years. Here's why: 1. Ad blocking software is a growing problem for digital advertisers. This software prevents ads from loading on websites, meaning that
brands pay for ads that their audiences never even see. But TV ads can't be blocked in the same way. Ad-blocking software only works on web pages, so it can't touching commercials that are aired on television. This gives TV a major advantage over digital when it comes to ad delivery. Ad blocking software is a growing problem for digital advertisers. This software prevents ads from loading on websites, meaning that brands pay for ads that
their audiences never even see. The result is wasted advertising spend and frustratingly low ROI for marketers. TV Ads are still relevant because ad-blocking software only works on web pages, it can't touching commercials that are aired on television. This gives TV a distinct advantage when it comes to ad delivery. Not only does TV have a higher chance of reaching its intended audience, but it also has a better chance of driving brand
awareness and product consideration. For these reasons, TV should still be a key part of any advertising mix. 2. The death of the third-party cookie won't affect TV advertising. Another challenge facing digital advertisers is the impending death of the third-party cookie. Third-party cookies are being phased out because of privacy concerns. Some users don't like the idea of being tracked across the
internet, and there have been a few high-profile incidents where companies collecting data from third-party cookies have had their data breached. As a result, Google, Firefox, and Safari have all announced plans to phase out third-party cookies within the next few years. This cookie is used to track user behavior online, but it's scheduled to be phased out by Google, Firefox, and Safari in the next few years. without this cookie, brands will
have a much harder time targeting their ads to specific audiences. But since TV advertising doesn't rely on cookies, this change won't affect it. This means that it will become even more important for reaching consumers as digital advertising becomes less effective. 3 .TV providers are already using sophisticated audience analytics and targeting capabilities. While many brands are just now waking up
to the power of TV advertising, TV providers have been using sophisticated audience analytics and targeting capabilities for years. This means that they have a wealth of data that they can use to target specific demographics with specific messaging. And as TV providers continue to hone their craft, they'll only become more effective at reaching their audiences. With programmatic CTV, ads can be served in real-time based on a variety of
factors such as location, demographics, and even viewing habits. This level of targeting ensures that your ads are being seen by the people who are most likely to be interested in your product or service—and that means more conversions and ROI for your business. In addition to being able to target your ads more accurately, CTV also offers better analytics than traditional TV advertising methods. With deterministic linear CTV analytics, you
can see exactly how many people saw your ad and when they saw it. This level of transparency is invaluable for developing future campaigns and making sure that your advertising budget is being used effectively. So what's holding Convergent TV back from becoming a reality? The short answer is that some kinks still need to be worked out before it can truly become a game-changer. For one thing, the platform is still in its early stages and has
yet to sign any major partnerships with media companies or advertisers. Additionally, Convergent TV faces stiff competition from other ad-tech companies who are also vying for a piece of the pie. What's your opinion?
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Dave Morgan is the CEO and founder of Simulmedia. He previously founded and ran both TACODA, Inc., an online advertising company that pioneered behavioral online marketing and was acquired by AOL in 2007 for $275 million, and Real Media, Inc., one of the world’s first ad
serving and online ad network companies and a predecessor to 24/7 Real Media (TFSM), which was later sold to WPP for $649 million. After the sale of TACODA, Dave served as Executive Vice President, Global Advertising Strategy, at AOL, a Time Warner Company (TWX). Who are you, and what do you do? Dave Morgan, a serial several time entrepreneur in adtech. I founded and run Simulmedia, an automated platform for brands and agencies to buy targeted video
ads across all of streaming and linear TV. When you look back to the 1990s at RealMedia, did you expect the industry to become so automated? Why or Why not? I did not anticipate the programmatic automation that we have today in advertising. I certainly expected the precision part of it, but I didn't come from a Wall Street background
and didn't have the context of programmatic trading. When was your start in the convergent TV space? My start in convergent TV was actually back in 1998 in Europe with Real Media, where we served and sold addressable TV ads across 3 or 4 million households in the UK, France and Switzerland
in partnership with NTL, Cable & Wireless, France Telecom and Swisscom. When the dot com bubble burst, we ended up shutting down the initiative, but what we learned there was very much on my mind when I started Simulmedia 20 years later in 2008. Why is there not a single industry standard
yet for interoperable, cross-screen addressability Linear TV and digital people, whether on the buy side or sell side and certainly on the measurement side are still very siloed, and still interact like oil and water at
times. Few have learned the nuances of the other and thus have difficulties finding middle grounds to work together on standards. It hasn't helped that Nielsen, which dominates TV audience and measurement standards in the US, has been incredibly slow over the years to deploy its own unified standard. I'm hopeful that will change with their new product Nielsen One, but the emergence of a dozen or so companies with alternative currencies on the CTV side means that the evolution is likely to be messy for years to come. What do you see to be the key to prevent inundating consumers with too many ads? Reducing the amount of irrelevant, redundant ads that consumers get is a real need. Fixing it starts with caring. Right now, too many companies are happy to add another bad ad if they can make more money. As streaming TV ads become more programmatic, I fear that we'll replicate the banner model where any advertiser can get their ad aired as long as they're willing to pay a penny more in an auction 10 milliseconds before the ad avaia runs. I would like to see some of the streaming services focus on ad experience as a differentiator. Netflix says that they are going to innovate here. Let's see how they do. |
TheRundown
At least 10 News Stories you Must Know
(but don't have time to read!) |
1. According to a press release, Pete Davidson is apologizing on behalf of Taco Bell for "going too far" with its breakfast innovations for menu items offered prior to 11 a.m. The release cites several examples of Taco Bell's over-the-top breakfast creations, including the Waffle taco shell, the Breakfast Burrito, and the Croissantwich. While some may argue that these menu items are delicious, others have
criticized them for being too high in calories and unhealthy. However, Davidson believes that Taco Bell was just trying to "give the people what they want." He says that the fast food chain was simply trying to "innovate" and that it "didn't mean any harm." He urges people to forgive Taco Bell for its breakfast missteps and to come back and try the new menu items. after all, he says, "they're really good." 2. Netflix's co-CEO, Reed
Hastings, recently predicted "the end of linear TV." He was quickly met with criticism from broadcasters, who explained why he is wrong. Linear TV refers to the traditional model of television, in which viewers watch programming at a set time on a set channel. Netflix, on the other hand, allows users to watch shows and movies on demand. Hastings' prediction is based on the fact that more and more people are choosing to stream content online rather than watch it on traditional TV.
However, broadcasters argue that linear TV is not going anywhere anytime soon. They point to the fact that live events, such as sports and news, are still best enjoyed in real-time. In addition, they argue that linear TV offers a level of curation and quality control that streaming services cannot match. While it is true that the landscape of television is changing, it seems unlikely that linear TV will disappear entirely. 3. FuboTV has seen
some impressive performance improvements among advertising campaigns that have used The Trade Desk's Unified ID 2.0 (UID 2.0) identity platform. Compared to the year prior, the sports-first streamer saw a 61.5% increase in advertising spend, a 25% increase in ad impressions, and a general increase in CPMs for campaigns using UID 2.0. This is great news for both uboTV and The Trade Desk, as it highlights the effectiveness of UID 2.0 in driving better results for advertisers. And it's not
just uboTV that's seeing these benefits - other publishers who are using UID 2.0 are also reporting similar improvements. So if you're an advertiser looking for better performance from your campaigns, make sure to check out UID 2.0. 4. It looks like TikTok may be getting into the live shopping game. The social media platform is reportedly in talks with TalkShopLive to launch live shopping capabilities in North America. If the partnership goes
through, large brands will be able to offer live shopping on TikTok as early as next month, just in time for the holidays. It's unclear exactly how the live shopping feature would work on TikTok, but it's likely that users would be able to purchase products directly from brands' TikTok posts. This would be a major coup for TalkShopLive, which has been working to bring live shopping to social media platforms for some time now. And it could be a big win for TikTok, which is always
looking for new ways to engage its users and get them spending money on the platform. Of course, nothing is set in stone just yet. The partnership is still being negotiated and it's possible that it could fall through. But if it does go through, we could see a whole new way of shopping on TikTok very soon. 5.If you're looking to get to know someone better, there's no need to ask about their weekend plans. Just check their TikTok
account. According to the latest finding by Consumer Reports, TikTok is tracking people's behavior across the web - even if they aren't using the app! Hundreds of leading companies and organizations are sharing data via the TikTok pixel, including IP addresses, unique ID numbers, what users have been clicking on, and more. So if you want to know what someone is really up to, just take a look at their TikTok account. You might be surprised at what you find! 6. LinkedIn's new page features give companies the ability to customize their posts and make them more engaging. The templates can be personalized to create visual posts that are hopefully more engaging. The clickable links let you turn copy links into visual call-to-action buttons or stickers anywhere. The pinned comments help you extract the most relevant comments from your posts for everyone to see first. And the page commitments help you highlight your
brand's vision and causes, such as work-life balance, diversity, equity, etc. So if you're looking to level up your company's LinkedIn page, these new features are definitely worth checkin' out! 7. The SEC has charged Kim Kardashian with pushing crypto. The reality star reached a $1.26 million settlement with the SEC. Kardashian will also have to disclose any paid promotions in the future. This is not the first time that the SEC
has charged celebrities with pushing crypto. In 2018, Floyd Mayweather and DJ Khaled were both charged with pushing ICOs without disclosing their payments. It seems that the SEC is cracking down on celebs who are cashing in on the crypto craze without being transparent about it. I guess we can all take comfort in knowing that even the rich and famous are not above the law. 8. CEO Tim Cook says Apple avoids the word 'metaverse' because the
average person doesn't know what it means — a stark contrast to rival Facebook, which is all about getting people into its metaverse. It's a brave new world out there, and it seems like every day there's a new word or concept that we have to wrap our heads around. For the average person, trying to keep up with the latest Terminology can be exhausting. And apparently, Apple feels our pain. In an interview with CBS This Morning, Cook was asked about the company's plans for augmented
reality and virtual reality, and he responded by saying that Apple is interested in both but is focusing on augmented reality because it has more "practical" applications. He went on to say that Apple avoids using the word "metaverse" because it's not something that the average person is familiar with. It's a smart move by Apple, given that the concept of a metaverse is still fairly abstract. By contrast, Facebook is all-in on the metaverse, with CEO Mark Zuckerberg saying that he sees it as the
next major computing platform. It remains to be seen whether Facebook will be able to bring the metaverse to the masses, but for now, it looks like Apple is content to stay away from the hype. 9. It is with great sadness that we announce the passing of Dan Wieden, one of the advertising industry's most influential figures. Dan was a co-founder of Wieden+Kennedy and the creator of the timeless "Just Do it" Nike campaign. He was also a
true pioneer in the field of advertising, and his work has had a profound impact on the industry. We have gathered recollections and remembrances from industry leaders in interviews, emails and social media posts about Dan and the legacy he has left the ad world. We will miss him dearly, but his work will continue to inspire us for generations to come. Thank you, Dan, for everything. 10. Stan Lee, the legendary co-founder of Marvel
Comics, is known for creating some of the most iconic superheroes of all time. Among them is Slam-Girl, a relatively obscure character who is now making her debut in the world of non-fungible tokens (NFTs). Thanks to OneOf, a leading web3 company, Slam-Girl is being brought to life on the online marketplace eBay. OneOf is known for its innovative use of blockchain technology, and it has partnered with eBay to create a truly unique NFT. The result is a one-of-a-kind collectible that fans
of Stan Lee and Marvel Comics will surely appreciate. 11. U.S. Senator Elizabeth Warren (D-Mass.) and Representatives Mondaire Jones (D-N.Y.), Katie Porter (D-Calif.), Mark Pocan (D-Wisc.), Pramila Jayapal (D-Wash.), and Jesús “Chuy” García (D-Ill.) sent a letter to the Federal Trade Commission (FTC) calling on the agency to oppose Amazon’s proposed $1.65 billion acquisition of iRobot, raising concerns about Amazon’s anticompetitive practices
that put consumers and their privacy at risk. In the letter, the lawmakers point to Amazon’s history of problems with antitrust violations, including its unlawful use of non-compete agreements with third-party sellers and its manipulation of search results to favor its own products. The letter also cites Amazon’s record of violating consumer privacy, including its use of Alexa voice recordings to target ads and its sale of consumer data to third parties. “The FTC should thoroughly
investigate this proposed acquisition and take appropriate action to protect competition and consumers,” the lawmakers conclude. |
The Watercooler
Impress your Co-Workers with these useless facts about marketing
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31.3% of US Based TikTok Users are Aged 40yo+
The 40+ Age Group of TikTok Users Has Grown 5.5x since Q1 2021
53.8% of TikTok Users in the US Have INCOMES of $75k+
Video gets 70% MORE ENGAGEMENT Than Images |
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