TV Advertising Comes Out of the Dark
And since content production represents a small percentage of costs relative to the larger media expenditures, in most cases incremental production costs can be readily justified based on the improved return on the media investments.
Customization also can increase the relevance of TV spots, which can reduce the minimum number of times a commercial must air to be effective. At the same time, context or exposure-based customization can help reduce TV ad wear-out, thus extending an ad’s maximum effective frequency.
TV ad customization will become even more critical as targeting becomes more prevalent, because the value of a customized message increases as the profile of a viewer segment and the context of the message narrow. The bottom line is that effective targeting will necessitate efficient customization.
New Technology Requires a New Mind-set
To best leverage targeted TV advertising, it takes a shift in the way we currently measure media and advertising effectiveness, as shown in the chart below.
Of course, there needs to be some proof before we embrace these new metrics.
Early trials for testing TV ad customization and targeting have shown positive responses. In one test, 1-800-FLOWERS.COM used Adtag and Adcopy to air different types of Mother’s Day offers to several different income-level cable zones. A generic offer was established as the control group to run against low-, average- and high-priced offers targeted to appropriate income zones. In addition, dynamic updating was used to generate an automated, day-to-day countdown via titling and voice-overs. According to a Forrester Research report, the results were impressive: Response for the targeted offers and dynamic countdown was nearly twice that of the control group and the average order value was lifted 10 percent, for a net result of more than double the total sales.
Overall, the benefits associated with targeted and customized TV advertising outweigh the related incremental costs.