Simulmedia Presents Closed Loop TV Insights at the ARF

What is the result of a media buy? In digital, there is an ongoing “war of attribution” amongst digital channels, which are measureable but typically awarded for the ad placed closest to the actual purchase. This is known as last-click attribution.

In TV, that “last click” is hard to identify. But with an analysis we call “Closed Loop,” we can know the “last exposure,” its value, and the individual value of every other exposure leading up to the response (viewership in the case of the ARF study discussed below, sales lift for other verticals). We know this because Closed Loop analyzes households’ response to ads that we know have been viewed, where we know the responses from the same households in which we know all ad exposures. In the case of sales, we use direct matches to connect sales to exposures.

Simulmedia recently introduced this new Closed Loop analytics approach to evaluate the performance of tune-in campaigns, which we presented at the ARF Audience Measurement conference in June. We are now expanding this Closed Loop analytics approach to provide performance insights into a variety of industry verticals.

What did we do to develop this Closed Loop insight? For the ARF, we took a comprehensive look at television promotions across all national networks as reported by Kantar and analyzed the statistical relationship between promotion occurrences and their promoted program viewing, to discover what placements and campaigns worked to drive viewership. The study, based on set top box data collected in February and March 2014, was intended to test the approach, demonstrate the analytics, and prove their value.

The findings show that Recency of a promotion matters most. Spots within 7 days of the promoted program were the most effective, while spots that aired more than 14 days in advance were not very effective at all. Reach-focused exposures, dispersed across dayparts and networks, also delivered strong results. Ad exposure frequencies of greater than 5 were much less effective. The frequency effectiveness drop-off starts at 3 exposures, and then drops significantly at 5 exposures.

So what? Well, this research proves that not all spots have the same value. Some drive response more than others. Closed Loop allows advertisers identify which spots matters to optimize response.

Beyond optimizing spot placements to drive response, Closed Loop methods can also be used to drive insights in diagnosing the effectiveness of targets, creative messaging, and other campaign elements and synergies.

Closed Loop makes television return-on-investment transparent and trackable. We will report on how this analysis applies to other verticals in the coming months.

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