It’s a fabulous time to be a TV watcher, but 2022 is also a befuddling time to be a media planner or buyer. With audiences now splitting their attention between linear and streaming, the complexity makes it seem like there are innumerable ways to make mistakes.
Understanding the risks within today’s TV advertising landscape will result in better reach, more connection, and less duplication and waste. Here are the five pitfalls to watch for and the ways media planners and buyers can avoid them:
Pitfall #1: Missing your audience completely
Twenty-seven percent of TV watchers do not watch any linear TV, according to Samsung Ads data. That’s too many customers for a linear plan to miss. It’s one thing to not be chosen by your target customer. It's another when your customers simply aren't hearing from you.
How to avoid it: The missing audience is in ad-supported video-on-demand (AVOD). AVOD continues to gain popularity with 74% of TV audiences watching AVOD for an average of 61 minutes per day, Samsung Ads found. As a rule of thumb, spending 60% of TV budget on linear and 40% on connected TV (CTV) brings reach to the linear and CTV audiences close to parity. This allocation benefits total national reach as well.
Pitfall #2: Over-communicating with your linear audience
The frequency problem in linear is no secret. Samsung Ads’ data shows that 24% of the linear audience now consumes around 90% of linear minutes. One advertiser Samsung Ads recently analyzed showed their ad an average of 65 times to linear TV viewers in households with Samsung TVs. If repetition is the strategy, then that’s fine. If not, that’s a lot of waste.
How to avoid it: For a typical TV buy targeting adults between the ages of 18 and 49, planners should cap their linear allocation at about 650 million impressions or 500 gross rating points. This is the point at which increased spend will not materially increase reach, but will start heaping on frequency. No matter how much is spent, it costs a fortune in cash and over-frequency to push much past 50% national reach in linear.
Pitfall #3: Duplicating your linear and streaming audiences
With few sources of authoritative data about audiences in AVOD, identifying which apps add incremental reach can be a matter of guesswork.
How to avoid it: Work with partners that can connect you with the data to truly de-duplicate. Recent analysis of client campaigns shows about 25% overlap between linear and AVOD buys, which is actually pretty good. However, as AVOD budgets rise, the problem will intensify.
Pitfall #4: Duplicating your AVOD buys
Some may wonder: By buying multiple AVOD options, aren’t advertisers walking into another duplication trap?
How to avoid it: The solution is to buy AVOD broadly. The apps and aggregators associated with broadcast and cable TV networks, represent just 36% of all time spent in AVOD, according to Samsung Ads data. Without expanding your AVOD buy, you encounter further reach and frequency issues. Buy broadly into free ad-supported streaming TV (FASTs), and streaming apps—including non-broadcast and cable networks, music, and social video—to reach that other 64% of time spent.
Pitfall #5: Under-communicating to your target
What is under-communication? It’s when your target audience doesn’t get enough frequency for your message to cut through. Light linear and streaming-centric viewers pose a challenge to frequency. One cause is under-investment in AVOD—the target is not seeing enough ads in streaming. Another cause is simply preference, with some audiences spending time in non-ad-supported viewing.
How to avoid it: Reach your audiences where they are. With data, elusive audiences can be identified, and advertisers can change their inventory and targeting strategy to double down on a selected group.
As a TV advertiser today, it can feel like there are so many pitfalls that sticking with the same approach is the safest approach. But understanding the risks can help us embrace, and manage, the changes required to keep TV moving forward.
—Justin Evans, Global Head, Analytics and Insights, Samsung Ads
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