We recently released our ‘2017 North American TV and Video Outlook’ featuring interviews with technology and agency leaders from the advertising industry. Below’s excerpt from the report features a Q&A with Joe Kriakoza, VP & General Manager, Automotive at Oracle.
Read Joe's full Q&A below and download our full report here.
How would you describe the state of the TV and video market in 2016? What do you expect to see happen in 2017?
Two words: convergence and consolidation. And with it, unfortunately, a lot of consumer confusion. People are figuring out how they actually use cable versus TV, versus OTT, and then understanding which is the right subscription model for them. But the market is healthy. There’s a lot of innovation alongside that convergence and consolidation.
In 2017, I think we will see even more convergence and fragmentation, but also excitement and healthy growth. Addressability, targeting and validation make sense for a market that’s previously relied on wide distribution and limited targeting. Addressable households are currently in the tens of millions, hopefully they’ll soon be in the hundreds of millions.
I also expect more effective planning tools and cross-media proliferation.
Have brands understood how to best leverage the value of data? What can they do better in 2017?
Brands are getting better and better at audience planning versus media planning. They’re connecting more deeply with their consumers, and that’s a major shift in how brands have thought about where to spend their dollars. More and more agencies are taking an “audience first” approach. Primarily this is happening in digital, but they’re also starting to translate that to TV where it’s available – and where it is, they are really beginning to force the issue.
In 2017, brands should focus on finding that
sweet spot between campaign scale and targeting accuracy , which is relevant reach. It’s about making sure you know and understand the audience you want to be speaking to and recognize them at scale.
Did brands align their video strategy across devices in 2016, or did they still plan their campaigns in silos? What will a cross-device campaign strategy look like in 2017?
Unfortunately, planning does still take place in silos, mostly because of the complexities around formats and creative.
But there’s definitely more talk and activity than ever around the alignment of devices - especially for TV and video planning, targeting and messaging.
What’s starting to happen differently is a bottom-up approach. So, where digital video gave marketers the ability to get much more targeted and specific about the inventory they wanted, that then translates to – how do I make my linear TV buys more like video? There’s an effort to try to align
the two. And there are TV to digital extensions happening as well – where we take viewership data from different providers and set top boxes, and give advertisers the opportunity to target based on that data.
So it’s crossing over in lots of different ways, it’s just not a perfect science yet.
In 2017 I think it will only increase, because inventory activation platforms will offer more cross- platform buying, and data platforms are going to improve on syncing people across devices and media.
The desire for cross-device frequency controls is increasing, because as a marketer these controls are important – first, so you’re not being annoying to the consumer, but also to sequentially message them better, based on where they are in the path to purchase.
What are the most notable changes in how brands think about and plan their TV and digital budgets?
Again, I think the idea of audience planning is becoming more prevalent – and being able to use first and third party data across a range of media outlets, whether it’s digital, over the top or linear, and then measuring the results. Ultimately, all of this is to find the true ROI of campaigns. Data is making this possible, and that data is reaching beyond just age and gender to purchase behaviors – what consumers buy; online behaviors – what consumers shop for and engage with; and location behaviors – movement and where consumers go.
Have you seen brands thrive in this new world of multi-screen, anytime, anywhere viewing or are brands struggling to piece the fragmented view of the customer back together?
Brands are definitely struggling with fragmentation, as are the various solution providers and startups trying to solve the problem. It’s a complex set of equations to link together all of these disparate elements – media planning, measurement, activation etc. – all tools that have largely operated in silos up to this point.
Brands have a lot more to think through. And it’s early in the process, because consumers are still
in a major migration period. It’s important to work with vendors that can help simplify the cross-device conundrum.
How is the convergence of TV and video changing the relationship between brands, agencies and media owners?
I think agencies are doing their best to work as system integrators – to answer this need from their clients.
While some clients are doubling down on their own internal resources, media companies also taking a bigger hand in planning, creative and development programs, because some of the agencies are still ramping up in these areas.
It’s quite similar to what happened in the early days of digital: in those days, when you needed a digital creative, the media owner would create it. And even for reporting, not having third party ad server
tools to be able to report effectively – even today, these things are still evolving and developing.
Are auto clients embracing advanced TV?
Where addressable advertising is available, automotive clients are aggressively testing it. The more progressive ones are going even further,
to where it’s a regular part of their planning engagement. Because it’s smarter, tighter and
it’s driven by data. These brands don’t have reservations, they have a test and learn attitude.
They’re doing this through programmatic TV and the the ability to optimize plans. So, if men age 25-54 are the primary target for a truck brand, programmatic TV is making this smarter by adding more data to that target.
For instance, your audience plan says your target should actually be men aged 25-54 who currently own a six-year-old truck and run a small business, and who index to very specific programs like MMA and bullfighting. In other words, the types of things you can do go beyond just the standard Monday Night Football spots.
There will be a need for more infrastructure and controls and options around private marketplaces and guarantees so that higher quality and more coveted TV spots become available. But I think that is starting to happen already via some of the networks working with the MVPDs. Videology has done some of this with their recently launched TV tools.
What opportunities do you think advanced TV offers to the automotive industry?
Relevant reach. Instead of seeing the same Corolla ad during Monday Night Football week after week, despite the fact that you’ve never owned or likely will own one, a more appropriate vehicle and offer will be tailored to the household. And then also knowing – am I actually reaching potential buyers? Or am I reaching people in New York City who don’t own a car and don’t care to own one? Using Advanced TV for optimization and tightening of TV buying can save millions.
What is your attitude to programmatic TV?
I think it’s fantastic that the industry is driving progress in this area. And it’s coming from the marketers, which is where it needs to be driven by, so the MVPDs and the big TV networks will oblige.
It won’t be quite the same as programmatic in digital, for various reasons – it’s just not as centralized when you think of infrastructure, demand/supply pricing dynamic etc. – these are all very different in the TV landscape. Many elements will be similar, like the ability to add data and leverage efficiencies. But the main point is it will just be a lot more effective in the long run.
Does advanced TV offer a different value for traditional TV advertisers?
For traditional TV advertisers, advanced TV is a new way to reach more targeted groups and measure more effectively, in conjunction with, if not replacing current methods of buying.
For non-traditional advertisers, advanced TV is a way to take digital skills, and start applying them to TV. It represents new ways for them to reach their customers without having to spend a Super Bowl budget. And combined with that, the improved tracking and targeting means there’s less fear about tangible return.
What factors should marketers consider in running video ad campaigns?
Screen type, size and context absolutely all matter. There’s lots of data to support the fact that more engaging content means more successful campaigns. And the various ways for advertisers to hit their brand versus performance goals, absolutely are not equal.
This is true even down to the ways publishers can deliver content, even just in the digital realm. For instance, whether it’s on mobile or desktop, through Facebook or YouTube – these can all have very different results.
A single video view across all media is good starting point as a metric, but it’s a difficult one to achieve without having nuances built in for how you measure the various different levels of engagement.