{"id":5284,"date":"2023-08-03T01:09:19","date_gmt":"2023-08-03T05:09:19","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2023\/08\/03\/all-advertising-is-performance-advertising\/"},"modified":"2023-08-03T01:09:19","modified_gmt":"2023-08-03T05:09:19","slug":"all-advertising-is-performance-advertising","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/all-advertising-is-performance-advertising\/5284\/","title":{"rendered":"All Advertising is Performance Advertising"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Jason Fairchild, CEO of\u00a0<\/em><a href=\"https:\/\/streaklinks.com\/Bl2kMHP6OlKDIeBJzQKqdHhw\/https%3A%2F%2Fwww.tvscientific.com%2F\"><em>tvScientific<\/em><\/a><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">If you asked any major TV advertiser if they would knowingly spend hundreds of millions of dollars on non-performant\u00a0advertising, the answer, of course, would be no. It follows, then, that\u00a0all\u00a0major brand\u00a0advertising\u00a0is\u00a0performance\u00a0advertising\u00a0&#8211; it just comes down to how successful\u00a0performance\u00a0is defined, which is itself a function of the technologies and tools available.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Thanks to new advancements in technology, marketers now have the power to execute TV\u00a0ad\u00a0campaigns and measure their actual\u00a0performance\u00a0by establishing a connection between viewed\u00a0ads\u00a0and real-world outcomes such as store visits and purchases.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">This wasn\u2019t always the case. TV has long been considered a \u201cbranding\u201d channel that delivered high-level, awareness value but was impossible to measure. Conventional wisdom has held that\u00a0performance\u00a0advertising\u00a0is associated with driving product sales, while branding aims to foster loyalty and customer lifetime value. \u201cBrand lift\u201d studies purported to fill in the missing measurement information for TV campaigns, but have been widely recognized as inadequate.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Legacy proxy metrics, often centered around reach and frequency against the target audience, have been the standard for structuring and evaluating TV\u00a0ad\u00a0campaigns for generations. These legacy proxy metrics for TV tend to prioritize wide-scale exposure with limited scientific precision, leading to a &#8220;spray and pray&#8221; approach to campaign planning and optimization. By relying solely on legacy metrics, marketers overlook the potential of reaching new audiences that can generate substantial returns on\u00a0ad\u00a0spend (ROAS).<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">This raises the question of why major brand\u00a0advertisers\u00a0advertise\u00a0in the first place. Is it to drive Gross Rating Points (GRPs), or is it to sell products? If the ultimate goal is to sell products, it becomes imperative to question the disconnection between established KPIs and\u00a0advertisers\u2019 actual objectives. The inability to measure outcomes accurately from TV\u00a0ads\u00a0has contributed to this misalignment. Moreover, the\u00a0advertising\u00a0industry&#8217;s adherence to legacy targeting and measurement paradigms has hindered necessary change.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Marketers need to reevaluate their strategies and embrace the opportunities presented by new targeting and measurement capabilities for TV. By leveraging these advancements,\u00a0advertisers\u00a0can bridge the gap between\u00a0ads\u00a0viewed and actual outcomes, thereby obtaining more accurate insights into the effectiveness of their campaigns.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Marketers can now focus on metrics directly related to their ultimate objective: driving sales. By connecting the dots between\u00a0ads\u00a0viewed and tangible outcomes such as store visits and purchases,\u00a0advertisers\u00a0can measure the true\u00a0performance\u00a0of their TV campaigns and find new audiences in the process. This shift empowers marketers to move beyond legacy metrics and adopt a more data-driven approach, resulting in improved ROAS and better-informed decision-making.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Currently, the US\u00a0ad\u00a0market is worth about $300 billion, with two-thirds of that directed toward\u00a0performance\u00a0channels like search, social, email and display. TV has represented most of the one-third that has remained branding-focused. With new technologies applied to CTV, that ratio is likely to continue shifting toward\u00a0performance, where every dollar spent can demonstrate firm ROI.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The evolution of targeting and measurement capabilities in TV\u00a0advertising\u00a0has provided marketers with an opportunity to execute campaigns with greater precision and measure their true\u00a0performance. Moving away from legacy proxy metrics and embracing actual\u00a0performance\u00a0advertising\u00a0for TV allows brands to align their objectives with tangible outcomes, ultimately leading to improved ROAS and more effective\u00a0advertising. As the\u00a0advertising\u00a0industry continues to adapt to these changes, it is crucial for marketers to leverage the power of data and analytics to drive their campaigns<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The evolution of targeting and measurement capabilities in TV\u00a0advertising\u00a0has provided marketers with an opportunity to execute campaigns with greater precision and measure their true\u00a0performance.<\/p>\n","protected":false},"author":7,"featured_media":5285,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[3],"topics":[2],"class_list":["post-5284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-brands-marketers","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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