By Walt Horstman, senior vice president, monetization
Advertising and marketing budgets are often the first line items to face scrutiny when senior executives face economic uncertainty. In the process, leaders tasked with bringing their offerings to market must urgently address a single question: How can we do more with less?
The question is once again front and center as concerns about inflation and recession cloud the outlook for 2023 and beyond. The answer to this question, however, is likely to be far different today from the path pursued in past downturns.
We have a profound set of capabilities that did not exist previously, such as connected TV and sophisticated audience targeting. Brands can now take advantage of allocating their spend to vehicles that are going to drive efficiency, performance and incremental reach.
Economic uncertainty is driving brands to media that can prove performance and can prove reach to finding the audiences they want to engage with, which is much more important now in our vastly fragmented media landscape.
This confluence of factors – the turbulent economy, changing consumer attitudes and the emergence of new technologies – has heightened interest in accurate, real-time analysis as brands seek evidence to prove performance and validate target audience reach.
The significant difference between now and previous economic downturns is the wealth of data that we have available – not only data in digital media but also the data that we have in linear television.
This makes it even more important for an advertiser to ensure that their media spend is driving incremental reach. There’s no point for them to spend their already scarce dollars to add a new media vehicle if it’s just going to add frequency to an existing media plan – it’s got to drive incremental reach. Data allows advertisers to construct a campaign using audience data to ensure it is optimizing performance and maximizing incremental reach.
In this new world where we have all this data, and can prove out effectiveness, it questions some of the historic practices which have been the go-to of how you do TV promotion.