Television Update Winter 2016-2017: The Shift in Ad Currency - eMarketer
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Television Update Winter 2016-2017: The Shift in Ad Currency

eMarketer Report

By: eMarketer

Published: December 12, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

For decades, TV advertising time has been valued and transacted on the basis of delivering the standard age and gender audience segments, such as adults ages 25 to 54. But richer, more descriptive advanced targets are emerging to form the basis for secondary audience guarantees, supplementing the primary benchmarks.

  • Advanced targets are created by combining first- or third-party consumer purchase data with TV viewing information, resulting in TV ratings that better reflect advertisers’ targets as opposed to the standard age and gender descriptions.
  • In the 2017–2018 TV season, secondary guarantees made on advanced target delivery could account for as much as 10% to 15% of the inventory sold by those network groups that are leaders in data-driven targeting.
  • The variety of advanced TV offerings introduces new complexity to the marketplace. Differences in the data sources used to create these targets make it difficult for media agencies to evaluate offerings vs. their own in-house TV investment models. Third-party verification of network-produced advanced TV ratings will be inevitable as advanced targeting scales.
  • Advanced TV offerings will eventually include targeting capabilities across both TV and digital—which currently make up more than 70% of spend for a typical media plan. TV and digital targeting is a longer-term prospect, given the networks’ primary focus on selling just TV inventory. The undertaking also requires integration of TV and digital audience estimates within a closed system.
  • TV networks have begun to work more directly with advertisers, many of whom are providing networks with first-party customer and transaction data to develop more precise TV targeting and gauge ad effectiveness on network properties.

"With US digital ad spending surpassing TV ad spending in 2016, the influence of digital targeting capabilities on the traditional TV space will only rise as the years progress. Marketers’ push to drive advertising results will also encourage TV networks to guarantee audiences via more advanced, digital-like metrics."

Table of Contents

Age and Gender Targeting: Currency for the Decades

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Advanced Targeting Currency

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Implementing Advanced Targeting: Infrastructure, Inventory and Risk Mitigation

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TV and Digital: ‘Switching Faces’

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5 charts are included in the full report:

Television Update Winter 2016–2017: The Shift in Ad Currency

US TV* vs. Digital** Ad Spending, 2015-2020 (billions)

Advanced Targeting Currency

Marketing Measurement Challenges According to US Marketing Executives, Feb 2016 (% of respondents)

Benefits of Buying Advanced TV Advertising* According to US Senior-Level Agency and Marketing Professionals, July 2015 (% of respondents)

Implementing Advanced Targeting: Infrastructure, Inventory and Risk Mitigation

Importance of Select Criteria When Recommending Ad Technologies to Clients According to US Senior Agency and Brand Buyers, Aug 2016 (% of respondents)

TV and Digital: ‘Switching Faces’

US TV* vs. Digital** Ad Spending, 2015-2020 (billions)