Page 36 - Adnews Magazine May-June 2021
P. 36

                  Attribution must embrace the long-term value of TV
Measurement divides the industry
TV is consistently regarded as the most effective advertising chan- nel bar none, whether you look at brand building, sales revenue or profitability.
The evidence of TV’s strength has been well-documented in driv- ing both short and long term busi- ness objectives (The Long and Short of it, Les Binet and Peter Field), or when regarding the catalytic effect of cross channel performance (New Insights into Multiplatform TV, Accenture). Bottom line: TV works and works brilliantly.
But when it comes to the reality of day-to-day performance manage- ment and measurement, the indus- try starts to divide around two very different perspectives: 1) invest and manage only in what you can meas- ure – a position aligned to short- term conversion or response met- rics, or 2) plan towards the promise of proven longer-term brand build- ing and revenue generation benefit.
Every CMO knows there is value in both approaches and that they are not mutually exclusive, but ultimately what gets meas- ured gets done. Unfortunately, many TV attribution vendors have amplified this division, focusing only on short-term data and short- term value.
Although TV advertising needs to become more accountable to cause and effect, the prolific use of short-term response data will inevitably exclude the impact of relevant factors and performance that fall outside a limited window of time. This means that brands are seeing less than half of the full effectiveness story.
The reality is that advertisers place more than 60% of their TV investment against objectives, ad creative, planning and buying that has been designed specifically to generate long-term business growth and value. To the contrary, attribution has remained firmly on the side of short-term measure- ment, and we feel that this needs to urgently change.
Brands need holistic TV measurement
Much of our advertising world is pulled into binary components. It’s either “this” or “that”. Left or right. Digital or traditional. Display or video. Long or short.
But invariably, the answer is never “or”, it’s always “and”.
Short-term accountability has led the way at the expense of long term measurement, distorting the performance truth. All Connected TV, VOD, or Streamed advertising carries a native bias of over-report- ing and over-credit of their short- term effect, reducing complex media planning and customer journey choices down to a simplis- tic view or post-impression metric. Measuring short-term effects is the easy, binary choice to make.
As the econometrician Grace Kite has recently published, “Peter Field and Les Binet have shown us a model for how short – and long-term marketing can and should work together, but the reality of achiev- ing this in practice is much harder.”
This highlights the need for all brands to benefit from holistic TV attribution – bringing real-time con- trol and visibility into the hands of marketers, that can deliver a more balanced intelligence that accounts
for both short and long-term per- formance together.
Seeing the bigger picture
Adgile’s research indicates that less than 5% of brands spending +$1m AUD per year on TV advertising are using attribution to understand the effectiveness of their campaign investment, leaving a significant amount of spend on screen that could potentially be wasted.
Not only does this highlight a major performance management issue for advertisers, it also points towards a clear capability gap of the TV measurement industry. When effectiveness is everything, bringing accountability to adver- tising holistically requires an attribution solution that can go beyond short term performance, and reflect the bigger picture and power that TV can deliver.
Working with a set of exist- ing customer partners, Adgile has developed a ground-breaking Long Term Effects Attribution product – managed and delivered through our cloud-based perfor- mance management platform, Catalyst – and sitting in comple- ment to our existing industry-lead- ing Short Term Effects solution, fuelled by Adgile’s 1st party, real- time TV advertising content data.
Having a common performance management platform by which to access both Short and Long Term attribution side-by-side, allows users to seamlessly understand and optimise their TV advertis- ing. But the real difference goes beyond operational efficacy – it’s with the use of different data sets that reflect different objectives and campaign planning variables.

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