Marketers are deeply invested in television, even though it’s a medium whose metrics haven’t caught up with the sophistication of other channels’ martech options. While it can feel easy— and even right—to invest in the traditional -40 GRPs, TV isn’t delivering the results marketers need to give their brands an edge.
Here at Keen, we know that willingness to challenge the status quo is what’s needed to create winning brands, instead of relying on gut instinct or industry convention.
TV’s Oldest Program Just Might Be Its Metrics
On the popular podcast, “Stuff You Should Know,” cohosts Chuck Bryant and Josh Clarke uncovered some surprising realities about how TV ratings actually work and why Nielsen, using the same methodologies for more than 60 years, are still a key, if antiquated guide to advertising decision-making.
“Marketers are victims of the antiquated system of Nielsen TV ratings.”
Nielsen gathers data for TV ratings from two sources: 116 million box meters installed on household televisions and “people meters.” But people and boxes don’t account for the myriad of variables in how people consume television today—streaming, mobile, DVR and tablets, to name just a few.
Yet even with so little reliable insight, TV remains marketers’ #1 choice. According to CMO.com.TV ad spending in the U.S. increased by 3.1 percent, hitting $72.4 billion last year.
Decision Point: Are your TV metrics adequate to guide smart decisions?
Nielsen may be imperfect, but it’s better than nothing, right?
PvM’s Amazing Race…to the Low End of GRPs
Makers of Airheads and Mentos and one of the world’s largest confectioners, PvM wanted a way to view their TV buy that more closely aligned with how their audience was ingesting it. Keen’s model provided insights that challenged how they thought about TVs role in their marketing mix and opened up a new opportunity for growth.
Consumer Insights Lead Bill Mackison embraced the industry’s 40-GRP rule of thumb, but after seeing Keen’s optimized media plan, he realized that sweeter results were available with far lower GRPs.
PvM’s optimized media plan showed lower GRPs actually delivered higher ROIs. The model helped PvM understand their strengths, and a new window of opportunity to grow – which included making a courageous decision to ditch the status quo and go low.
PvM’s courage speaks for itself—the brand uncovered a million-dollar opportunity for the second half of 2018 and increased sales volume by 82 percent—all as a result of building a future-focused, optimized model with Keen.
America’s Got TV Opportunity
The good news it that TV is still a great channel for marketers to build equity and drive brand growth, and the even better news is that with next-generation metrics those results can exceed expectations for both cost and impact.
Watch this two-minute video case study on PvM to learn more about how they leveraged better metrics to innovate their marketing strategy.