Watch: Connect The Dots To Pay-By-Outcome Ads

Originally posted on Beet.TV

So far in the history of advertising, marketers have had to satisfy themselves with measuring the effectiveness of their spending against relatively soft outcome metrics, like clicks, views or consumers propensity to buy.

But now some marketers are beginning to demand publishers and networks charge them only when ads have generated an actual sale.

“The kind of accountability that the advertisers are getting used to is now infecting the TV marketplace,” according to Simulmedia CEO and digital ad veteran Dave Morgan, whose company is helping ad buyers plan TV campaigns with digital efficiency. “We’re going to see a shift from selling just on media outputs like gross rating points and demographics to business outcomes – by sales…

(This will be accomplished) not by a media mix model on what happens a year ago or a campaign you did nine months ago… but tying off on sales data with retailers, packaged goods companies and loyalty cards – connecting every singe TV impression to its individual impact at the household or personal level on sales.”

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