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The Future of TV OR Digital Video THE CMO SOLUTION GUIDE TO PRESENTED BY: and February 2015
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The Future of TV ORDigital Video

THE CMO SOLUTION GUIDE TO

PRESENTED BY:

and

February 2015

At CMO Club dinners in New York City, Boston and Los Angeles we asked over 50 CMOs this very question. We were shocked. Shows from subscription-based services – namely HBO, Netflix, and Amazon -- made up a whopping 90% of the answers. From there, the conversation swirled into a lively discussion about the future of TV advertising. If a room full of marketers are not watching ad-supported TV, do they expect their customers to continue to receive their brand messages via this well-established medium? Broadcast vs. cable vs. over-the-top vs. YouTube and more…where are ad dollars going and how will marketers leverage content to deliver advertising based? These discussions left this group of self-admitted digital neophytes quite perplexed about how to handle the ever-evolving TV vs. digital video balancing act. It may be the toughest problem tackled since that Rubik’s Cube we toyed with in the ‘80s.

Well, this got us scratching our heads. Puzzled. Intrigued. And thinking.Thinking very hard.

We enlisted your peers to help solve this Rubik’s Cube. We decided to launch deeper research to capture and describe the TV vs. digital video conundrum. Our aim is to uncover actionable insights to help you as marketers navigate a clearer and more proactive route out of the dark, murky waters of how to allocate your video dollars across these media types.

The results of our efforts are at your fingertips. Join us on the following pages as we share both the wisdom and the most acute pain points articulated by over 80 senior marketers. Discover, along with us, how the marketing frontrunners are balancing ad dollars and attention on TV vs. digital. They don’t all agree on what makes the best approach, but they can help you apply their thinking to your unique marketing challenges. Our hope is that you will learn how to construct a clear, clever and customer-centric approach that drives great success for your business.

DAVID COOPERSTEINCMOSIMULMEDIA

WHAT WAS YOUR FAVORITE TV SHOW FROM THE PAST YEAR, AND DO YOU KNOW WHERE IT AIRED?

HERE’S A QUESTION FOR YOU:

PETE KRAINIKFOUNDERTHE CMO CLUB

PG 1 www.simulmedia.com ©2015 Simulmedia, Inc.

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

TABLE OF CONTENTS:

Executive Summary...................................................... pgs 4-5

The Marketer’s Media Mayhem................................pgs 6-10

CMO Guide to Balancing TVand Digital Media......................................................pgs 11-14

Time to Move Forward....................................................pg 15

About Us............................................................................pg 16

PG 2 www.simulmedia.com ©2015 Simulmedia, Inc.

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

The Future of TV OR Digital VideoPresented bySimulmedia and The CMO ClubWith special thanks to the CMOs who took part in shaping this research:

BOB KRAUTSVP, GLOBAL CMOPAPA JOHN’S INTL

JULIA FITZGERALDCMOSYLVAN LEARNING CENTER

RICHARD MARNELLSVP MARKETINGVIKING CRUISES

JULIE CARYEVP / CMOLA QUINTA

MARC SEGUINCMOPOPCHIPS

and

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 3 www.simulmedia.com ©2015 Simulmedia, Inc.

THE CMO SOLUTION GUIDE TO

For over a decade, marketers have toyed with digital advertising – on the web, in mobile, via search – moving dollars from traditional media like print newspapers and magazines to support these new channels. With the rise of professional digital video content over the past five years, leading marketers from Mondelēz to Allstate have begun to move all or a portion of their TV budgets into digital video efforts. But despite years of digital platform testing, CMOs still claim to be nascent in their ability to figure out the right balance between these media, and how to make the alignment between TV and digital video work best. As time and attention move to digital experiences and access points for content and engagement, consumers’ awareness of brands will depend on forming the right mix. Savvy CMOs need to learn the way forward or risk brand obsolescence.

The CMO Club, in partnership with Simulmedia, recently conducted research to help understand this TV vs. digital conundrum and provide a bridge for CMOs who need to close the growing gap between consumer media consumption patterns and CMO know-how. This study of how the best companies are deftly managing the TV and digital crossroads was undertaken to help educate the large majority of CMOs who are struggling to map their path forward.

The research was illuminating. This is a hot topic for marketers, as they get swayed by the digital allure of deep targeting and measurement, but are loathe to walk away from years of success built using TV as an efficient reach vehicle. What we found in the study were some interesting dichotomies in the minds of CMOs and marketing leaders, the kind that point to a disruption in the way things have been done on both sides of the equation.

Our story goes like this…

EXECUTIVE SUMMARY:

ONCE UPON A TIME, THERE WAS A TV INDUSTRY THAT DELIVERED RESULTS LIKE NEVER SEEN BEFORE. BUT THEN ALONG CAME DIGITAL MEDIA TO CHALLENGE TV’S KINGDOM. For CMO Club members, digital spend as a percent of advertising budget has gone from 11% three years ago to 24% today, and they expect that allocation to rise to 36% in three years from now (see Figure 1).

3 YRS AGO TODAY 3 YEARS FROM NOW

10.6%

23.7%

36.4%

AVER

AG

E D

IGIT

AL

SPEN

D A

S %

OF

AD

BU

DG

ET

FIG. 1 (INSERT CHART TITLE)FIG. 1 CMO CLUB MEMBERS DOUBLE DOWN ON DIGITAL

Source: CMO Club/Simulmedia Survey, Fall 2014

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 4 www.simulmedia.com ©2015 Simulmedia, Inc.

TV WILL NOT BE SLAYED BY SOME DIGITAL DRAGON. BUT TO MAINTAIN PEACE IN THE KINGDOM, MARKETERS NEED TO BRING BUDGET PLANNING UNDER ONE ROOF. Based on our survey of 80 CMO Club members, 54% of CMOs use digital video to supplement TV as a holistic strategy, yet only 31% of CMOs align their budgets for TV and digital advertising spend (see Figure 2). This separation leads to a disconnect between the value of each medium, as just over half (52%) claim that they have different expectations across the two platforms.

54% 31%48%

TV AND DIGITAL WILL CO-EXIST, BUT THEY WILL CONTINUE TO SERVE VERY DIFFERENT MASTERS. TV delivers reach, but has historically not been measurable at a granular level. Digital delivers depth and is highly measurable. Three quarters of the respondents said that they measure reach the same way for both TV and digital video. Along those lines, a mere one-third of the marketers surveyed see Nielsen as the ongoing foundation of their reach metrics.

TV’S REACH AND DIGITAL’S DEPTH MAKE THEM GREAT PARTNERS IN THE MARKETING MIX. When we talked to CMOs directly they saw the value of tying the two together. In fact, when we conducted our interviews, the most staunchly favorable to TV would drift into the value of digital, and vice versa!

TV AND DIGITAL WILL LIVE HAPPILY EVER AFTER. TV will go through a number of changes as a medium for entertainment and advertising in the next few years. As the line between “digital video” and “television” blur, strategies to put the best of both to work for driving sales will become the norm.

A HOLISTIC STRATEGY

ALIGNED BUDGETS

ALIGNED EXPECTATIONS

FIG. 2 WHEN IT COMES TO TV AND DIGITAL, MY COMPANY HAS:

Source: CMO Club/Simulmedia Survey, Fall 2014

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 5 www.simulmedia.com ©2015 Simulmedia, Inc.

Some digital ad channels—notably search and display ads—have been around for over a decade and are starting to mature, while others are just now gaining traction. Mobile represents a whole new way for consumers to engage with brands; we won’t tackle that here. Digital video is quickly rising across all screens—desktop, mobile/tablets, and living room TV screens—forcing both traditional and digital marketers to rethink the relationship between the two video advertising vehicles.

MARKETERS FACE MEDIA MAYHEM

Copyright ©2014 The Nielsen Company

Q3 2014

Q3 2013

Q3 2012

LIVE TV

WATCHING TIME-SHIFTED TV

USING DVD/BLU-RAY DEVICE

USING A GAME CONSOLE

USING INTERNET ON A COMPUTER

USING A SMARTPHONE

LISTENING TO AM/FM RADIO

USING A MULTIMEDIA DEVICE

4:32

4:50

4:44

0:30

0:24

0:28

1:06

1:04

1:00

1:33

0:53

1:10

2:44

2:51

2:47

0:04

0:12

0:09

0:10

0:09

0:09

0:09

FIG. 1 (INSERT CHART TITLE)FIG. 3 NIELSEN: MEDIA TIME SPENT SHIFTING QUICKLY

The term “digital” means many things to many people. In the marketing context, it is most frequently used to describe the distribution of, and engagement with, marketing, media, and entertainment across web, mobile, and other digital channels. It represents both a new frontier and a fundamental shift in the way people, as consumers or communicators, interact and engage with others, consume content, and rethink the process by which everyday life is managed. Yet while eMarketer indicates that digital media consumption surpassed TV media consumption for the first time in 2013, still one-third of US households—100 million people—do not have broadband Internet access. These people still depend on TV for their video media consumption (see Figure 3).

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 6 www.simulmedia.com ©2015 Simulmedia, Inc.

Copyright ©2013 eMarketer

2012

$3.88$1.81

$2.19$2.06

$3.18$2.21

$2.66$0.89

$1.31$1.76

$1.81$1.68

$1.67$1.59

2013 2014 2015 2016 2017 2018

TVDIGITAL VIDEO**

This causes angst for marketers, whose job is to make the best marketing and media investments to drive sales. Marketers are flummoxed by what a “just right” media strategy looks like. The old guard of TV and other mass media used to deliver valuable reach and immediacy, but this works less well to an audience whose attention fractured across dozens of programming networks, multiple devices, and the rapid growth of digital video options. Conversely, digital is more measurable and targetable, but the work required relative to the reach provided is hard to justify, as the options for where to place a digital video ad, which creative to use, and how to scale the effort are still art, not science. The result? Mayhem. Marketers are all over the map when it comes to optimizing the balance between TV and digital video advertising.

The interest in digital video is just now gaining noticeable traction as budgets have started to grow. In the US, digital video advertising expenditures are exploding: Digital video ad spending is estimated at $6 billion this year, growing around 42% annually. However, the actual dollars spent in TV still greatly trumps digital video. TV advertising dollars in the US were approximately $76 billion in 2014 and still growing just over 3% annually. Forecasts for annual increases in ad spend through 2018 are shown here (see Figure 4). While both will continue to grow, TV will continue to add more raw dollars of advertising than digital video will, particular during pivotal political and Olympics years.

FOR NOW, DIGITAL VIDEO IS BUT A RIPPLE IN THE TELEVISION OCEAN

FIG. 4 eMarketer: ANNUAL INCREASE IN SPEND ON TV AND DIGITAL VIDEO ADVERTISING, 2012-2018

BILL

ION

S

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 7 www.simulmedia.com ©2015 Simulmedia, Inc.

Marketers are not all in lock-step on how the trend towards digital works for their brand. Ruffles, PepsiCo’s chip brand, targeted primarily at millennial males, recently put all their advertising dollars into digital and dropped TV altogether. That’s right, 100% digital, 0% TV. Ruffles has definitely gone rogue with this “all or nothing” approach.

In stark contrast to Ruffles, consider the recent decisions by snack brand PopChips. The new CMO of PopChips, Marc Seguin, bucked the digital trend and shifted the company’s media budget from 80% digital spend to 80% TV spend. Why? He needed to scale both the brand and the business very quickly, TV gave him the reach he needed to build awareness for this relatively new entrant.

Media’s role for marketers is to help create and capture demand that translates into revenue-generating customers. While CMO input ranged from pro-TV to pro-digital and everywhere in between, CMOs are crystal clear that TV and digital deliver different things.

TV, like no other media in current existence, delivers massive and rapid reach. Those two intertwined attributes are not replicable in other channels. Thus TV is heralded for delivering reach and is a perfect “first step” for prospecting to large audiences for brand driven business like consumer products and automakers.

Digital is easily measured and delivers depth around customer interaction and engagement. Since many consumers will also make purchases digitally, using digital media helps to sway specific, targeted groups of prospects directly to purchase. As a later-stage funnel activity, digital’s depth via measurement and real-time activity is its’ competitive advantage. Companies that sell directly to the consumer and are promotion driven – like airlines, retailers, and mobile carriers – have adopted digital as a means to actively drive sales results.

Digital depth cannot match TV’s breadth. Nor should it. TV is not as measurable or personalized, so it cannot perform the magic that digital delivers. In that very unique way, TV and digital do not compete, they complement. Thus, the winning combination is the joint approach. TV’s reach and digital’s depth make them amazing partners in the marketing mix.

Digital just works better. Digital is influencing people effectively when they are way down the purchase funnel - driving them either to the site or the store. As we are more attached to new devices, there is an ability to brand. It is much more difficult to get people to watch “passive media” today. Radio and video do have a role, and need to maintain some connection to market the totality of the brand. Video on TV is harder to get people to consume.”

CMOOffice Supply Retailer

TV is the strong continuity platform. We need to rely on it to achieve massive reach, meaning 50-75% of our audience. Digital just doesn’t do what TV does for us. However, in our industry we are a leader, in that we are over 50% digital in our media mix. But we have different expectations for the platform, such as sales generation. We don’t expect digital to deliver the massive reach that TV does.”

Bob Kraut

SVP, GLOBAL CMO,Papa John’s Intl

A TALE OF TWO STRATEGIES: RUFFLES GOES ALL DIGITAL, POPCHIPS DIALS TV BACK IN

TV DELIVERS REACH, DIGITAL DELIVERS DEPTH

““

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 8 www.simulmedia.com ©2015 Simulmedia, Inc.

For most marketers today, the Holy Grail of a connected customer experience via the integration of digital and TV is the Holy Grail. Using TV as a reach vehicle and complementing it with complementary targeted and interactive experiences helps amp up momentum and customer engagement. Sequencing ads to lead with the reach of TV then engage and measure with digital may be the perfect 1-2 power punch. In fact, a sound digital strategy needs TV to gain visibility, and TV will reinforce brand messages that play out in the digital context.

The key for marketers, then, will be the development of an optimized, cross-platform and integrated strategy, centered on where each unique target audience spends time. Modern media strategy is built upon the fundamentals of how customers interact with businesses, not just where they get a brand message. The underlying principles are that:

Everyone needs a digital video strategy. From books and music to travel and pizza and even beauty brands, no business can be successful without some digital route to the consumer and video has become a core part of that strategy. Digital video is becoming a core part of the consumer media diet, from news chips to full-length episodes online.

But digital is only part of the answer. While digital is ripe with opportunity, its fragmentation and narrow spans of engagement create distinct challenges and increases complexity for marketers. And the 100 million dial-up and disconnected consumers represent significant buying power for consumer products and other mass marketers.

Aligning the two media is not so simple. TV’s reach and digital’s depth make them great partners in the marketing mix. The challenge for marketers now is to better understand what these two media – one established and one climbing the charts – are best at delivering for marketing purposes. For many CMOs, mastering TV marketing is something they have built their careers. Today’s marketing creativity is dependent on knowing how to weigh the benefits of each medium against activities that drive marketing success (see Figure 5).

TV is still the best way to gain reach and gain rapid awareness that can’t be done with digital. We toyed with the idea of an all-digital plan [for a recent launch], but digital can’t get there quickly enough. For the core business we use paid and organic search as must-do support for reinforcing the TV message. They have to work together - you must have the two to achieve your goals.”

CMOLarge Financial Institution

We made the decision over five years ago to combine the role of media for online and offline. Media always needs to be integrated. We have a media director who is channel agnostic, which means she will allocate the dollars holistically based on what each channel needs to contribute to overall success. To get there, we support our cross-platform efforts with marketing mix modeling (MMM) to help understand how the mediums work together.”

Julie Cary, CMOLa Quinta

THE LONG TERM STRATEGY - TV AND DIGITAL TOGETHER “

“REACH

COST/VALUE

TARGETING

MEASUREMENT

SPEED

TVDIGITAL DISPLAY

(WEB, MOBILE, ETC.)DIGITAL VIDEO

(n.i. OTT)

FIG. 5 TV’S VALUE PROPOSITION IS BEING TESTED BY DIGITAL

Source: Simulmedia

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 9 www.simulmedia.com ©2015 Simulmedia, Inc.

SEEK TO BUY AUDIENCES BEYOND NIELSEN DEMO

FRAGMENTATION DECREASES TV SPEND

AGENCY HELPS BALANCE TV AND DIGITAL VIDEO

STRONGLY AGREE

AGREE60%

48%

19.6%

24%

8%

7.8%

Alignment is not on short-term agendas. Despite the magic (measurable magic that is) that a TV and digital partnership can create, there is still paralysis. Marketers struggle today to apply budgets and measure outcomes.

CMO Club members point to change on the horizon. Traditional sources like Nielsen, dependence on TV, and reliance on agency advice are all in flux (see Figure 6).

Surprisingly, agencies are not perceived as helpful in the TV vs. digital conundrum. Despite the agency role—to help marketers find the best alignment of creative, media and consumer attention to drive business results—over half of the CMOs in this study responded that they were not getting the advice they needed from their agencies to create a balanced TV/digital video ad strategy.

Based on the survey findings about the state of TV vs. digital media knowledge, it is clear that there is a broad variance in CMO knowledge and skill in navigating this landscape. Without agency guidance or the benefit of a long track record, CMOs are often driving along the video highway without a roadmap.

Source: Simulmedia

FIG. 6 CMOs WANT TO CHANGE, BUT NEED NEW SOURCES OF SUPPORT

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 10 www.simulmedia.com ©2015 Simulmedia, Inc.

There is no playbook for optimizing your media across TV and digital. And customizing around your customers’ preferences and behaviors as well as your business and industry are essentials. Lastly, digital can range from video storytelling on Instagram and Snapchat to more digital-like targeting. The key—based on our findings—is to find the right mix built around your customers and optimized to use the best of each media platform. This is not an all-or-nothing TV vs. digital investment. The balanced portfolio concept, sequenced together strategically and thoughtfully, is where the magic happens.

CMO GUIDE TO BALANCING TV AND DIGITAL MEDIA

STEP 1 DEFINE YOUR CUSTOMERS NEED

STEP 2 FOLLOW THEIR PATH

STEP 3 USE DIGITAL THINKING

STEP 4 TEST, LEARN, TEST AGAIN

STEP 5 SCALE AND REPEAT

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 11 www.simulmedia.com ©2015 Simulmedia, Inc.

Here is a starting point for you based on best practices gleaned from first-movers and market leaders.

Are you trying to quickly build broad awareness for new prospects? Are you looking to reactivate prospects or dormant customers? Are you trying to deepen relationshipsand upsell/cross-sell existing customers? Knowing whom you are targeting and what you are seeking to accomplish is clarifying.

EXAMPLE: Bob Kraut, SVP, Global CMO of Papa John’s Intl has weekly revenue targets. TV advertising is best reach for immediate and broad awareness-building as consumers make pizza choices. Bob has a novel approach to using TV that is economical and effective. By focusing on just one part of the week – when consumers are most likely to order a pizza – he saves a lot of money spent just in brand building. Further, Papa John’s has created highly relevant ad content that features local and national sports celebrities such as quarterbacks, interacting with Papa John himself. Thus, Papa John’s is able to connect on a brand level and drive action in the same spot. The growth of their market share and their revenue results reflect the effectiveness of this approach. But Papa John’s doesn’t ignore digital, by any stretch. Bob told us that 50% of the business is online, which leads them to invest most heavily in digital relative to competition since that’s where the customers are today. This pairs perfectly for him with the leader tactic of TV to develop breadth, reach, and sales.

EXAMPLE: Not all customers have made the transition to digital, so the move to digital is not always the best choice. Richard Marnell leads marketing for Viking Cruises, and their clientele is more of the traditional TV-watching 55+ year old variety. When he thinks about the best mix of media for his business, TV still resonates strongly. When he is in-market on TV and aligns his media with what he knows about his audience, sales growth is inevitable. While he still believes digital will grow, for now TV is the route to win over the most likely buyers of his cruises. Notably, Viking’s success was driven by underwriting Downton Abbey on PBS, not just running ads across a wide array of networks.

STEP 1 DEFINE YOUR MEDIA CHOICE BASED ON WHAT YOUR CUSTOMER NEEDS

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 12 www.simulmedia.com ©2015 Simulmedia, Inc.

Customers take many routes to get to their actual purchase. The marketer’s role is to find them and help them get there, again and again. As consumers take new routes to purchase, understanding their behavior and preferences is the most critical step.

One great example of a consumer’s journey to purchase and the sources of online and offline information used to inform that decision is shown below (see Figure 7). Regardless of the specific sources used to sway decisions, one thing is certain: consumers are often making this journey using peer-reviews, self-educating via online content and can be anonymous prospects for the majority of the journey. That’s why marketing, media and content must be delivered at the right places, times, and formats to drive decisions and dollars.

STEP 2

STEP 3

KNOW YOUR CUSTOMER’S JOURNEY

USE DIGITAL THINKING TO DELIVER CUSTOMER-CENTRIC MESSAGES

ONLINE

OFFLINE

AWARENESS

SEO

Blogs

Billboards

Location

Email POS FacebookLoyalty

CampaignReceiptCheck-in

Chat

Offer

CallReviews

Incentives

Coupons

Relevance

MapsNewspaperWOM

TV

Direct Mail

Radio

Facebook

Local Search

Display

Deals/Offers

SEM

CONSIDERATIONTRANSACTION

LOYALTYADVOCACY

Knowing the role of each channel in the purchase journey, marketers can start developing a plan with messages appropriate at each step.

“Because we are a franchise, some of our co-ops still use local TV. But at an enterprise level national TV is no longer a productive media channel. Even direct response ad placements are not as effective as they used to be. Now we are investing in strong local presence in places where we have physical learning centers - events, community or school, where families/moms gather. We also doubled down on digital - video, programmatic display, content engagement, geo-specific search, social, and an educational mobile app network. Why an app network? Because moms come to download games for the kids and we get their emails to do better lead gen. The total approach is more inclusive, and more locally relevant, so it drives our message more distinctly.”

FIG. 7 THE EVER MORE COMPLEX CUSTOMER JOURNEY

EXAMPLE: At Sylvan Learning, CMO Julia Fitzgerald truly gets the power of meeting customers exactly where they are. For Sylvan Learning, that means using geographic proximity to be truly locally relevant. Her comments capture this perfectly:

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 13 www.simulmedia.com ©2015 Simulmedia, Inc.

Regardless of medium, there are ways to test the best approach. Media teams typically measure results based on ad delivery, audience reach, and price. But in today’s multichannel world tests and measurement can do some much more. Tests range from simple A/B testing of creative, to using mix models that incorporate message testing, to full scale media tests that involved running various media flights to determine correlation between campaigns and actions. Finally, there is the use of data – set top box data, clickstream data and more – that can provide deep insight into specific customer actions.

Once tests are run, the campaign has to roll. Measurement should depend on specificbusiness measures that prove the ROI. Here are a few ways in which the metrics of successwill change:

Sales results deliver short and long-term benefits. For sales, that means everything from direct daily transaction volume to long terms shifts in sales volume. The ROI of a TV or a digital campaign is easier when the two are synchronized, so that the immediate impact of TV on site traffic, search activity and transactions are tied back to the relevant parts of the campaign. But the long term is also important, since a successful TV effort can deliver the brand impressions that contribute to a new baseline of sales activity beyond the initial campaign.

Qualitative measures provide more direct impact. Softer measures like sentiment need to be measured to understand the impact of the message. From a TV standpoint, that measure may be brand lift and aided/unaided awareness. From a digital perspective, that same sentiment could be measured by mentions or shares in social media, that help to understand the direct impact of the campaign. And the feedback from the campaign will have to scale as well. Unexpected outcomes of these qualitative measures could range from surprising interest from unintended target audiences to highly valuable product innovation feedback.

EXAMPLE: At a large financial institution, each medium is tested for how it delivers for the business. The Head of Marketing told us that “the majority of our spend is still heavily in TV. But the direct mail arm of our credit card is still very strong. TV has historically reinforced the ‘arrival of an envelope’ delivered in a direct mail campaign. We need to understand how to manage that process relative to the rest of the funnel to get the consumer comfortable with the brand and the offer. Digital is helpful because it provides enough information to make a good decision. Look more at the overall mix and is it generating results. From a specific medium POV, digital is a large topic due to SEO/SEM, social, web, mobile – they have their own distinct attributes. For example, home page takeovers are evaluated differently that the search/paid search page.”

STEP 4

STEP 5

TEST CAMPAIGNS BASED ON BUSINESS GOALS, NOT MEDIA METRICS

SCALE THE PLAN, BUT REMEMBER TO MEASURE BROAD AND DEEP OUTCOMES

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 14 www.simulmedia.com ©2015 Simulmedia, Inc.

It’s time to embrace the partnership that can be and let go of the either/or approach when considering TV vs. digital media investments. TV’s breadth and immediacy cannot be replaced by digital. And real-time, interactive digital experiences exert powerful influence in customer behavior, experience and loyalty.

We’re sticking with our story…and it’s NOT a fairy tale!

Once upon a time, there was a TV industry that delivered results like never seen before. But then along came digital media to challenge the TV kingdom. The rise of diverse digital tools has led to a notable increase in digital spending across all businesses. Video is the next up-and-comer to emerge onto the advertising scene.

TV will not be slayed by the digital dragon. Digital can beat TV on detailed measurement and deep personalization, but it can’t efficiently reach an audience the way TV still can.

While TV and digital will co-exist, they serve very different roles. Connected, cooperative coexistence is the key.

TV and digital really will live happily ever after, spawning happy data-driven businesses, rejuvenating agencies, and helping marketers effectively reach their business goals.

TIME TO MOVE FORWARD

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 15 www.simulmedia.com ©2015 Simulmedia, Inc.

CONTACT US670 Broadway, 2nd Floor(e): [email protected](t): 646.201.5252

Simulmedia (simulmedia.com) is the leader in helping advertisers andagencies drive business outcomes by taking a digital approach to linear TV advertising through the application of national ad inventory, robust data science, and leading technology to deliver impressions that drive impact. Our Simulmedia Audience Network reaches 110 million house-holds across the U.S. through partnerships with over 80+ national cable networks and the top multichannel video programming distributors (MVPDs). Based on proprietary analysis of second-by-second activity for over 50 million people, Simulmedia determines the best options to extend the reach of campaigns to specific target audiences, and places advertising across those disparate TV networks. Since we began in 2009, Simulmedia has worked with more than 70 advertisers and their agencies to target, deliver and measure hundreds of TV campaigns, and on average reached their target audience 32% more efficiently than they were able to with traditional TV ad scheduling and targeting methods alone.

CMO Club is the world’s most engaged and inspired community of Senior Marketing Executives who help each other solve their biggest challenges, within a candid, trusted, and sharing environment. Collaboration fueled by inspiring events and within the members-only Digital Solutions Clubhouse raises the standard for what is required to be a successful Chief Marketing Officer. With more than 800 members and a no vendor selling policy, The CMO Club is the go-to center for today’s Senior Marketer for peerbased personal and career success support. For more details on membership or becoming a thought leadership partner, please visit: www.thecmoclub.com

SIMULMEDIA

THE CMO CLUB

PRESENTED BY:

THE FUTURE OF TV AND DIGITAL VIDEO

PG 16 www.simulmedia.com ©2015 Simulmedia, Inc.


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