The article linked below, written by Joe Flint and published in the Wall Street Journal this morning, highlights a new capability in television advertising. While TV ads have historically taken a 'one size fits all' approach that serves one ad to all viewers, new data from Nielsen have the potential to disrupt the space and slow the mix shift towards digital advertising. By partnering with DirecTV and Dish Network, Nielsen will gain access to data from 55 million devices, including smart tvs and set top boxes. This data should help targeted advertising increase share within the TV ad space; today, targeted ads represent just $2 billion of ad sales in TV, compared to $70 billion spent on traditional (non-targeted) TV ads. Nielsen's innovation solves a critical problem with targeted TV ads today: it's hard to implement and track viewership of different ads sent to specific zip codes and households.
Though Nielsen's progress represents a positive step towards targeted ads in TV, barriers remain, an example of which is the technical debt within many legacy TV networks. If TV networks can't efficiently deploy targeted ads, the rollout of Nielsen's data/analytics may be slower than planned. Further, though Nielsen's emerging capability to serve targeted TV ads will most certainly impact the TV advertising segment, whether it will help this segment compete with digital media powerhouses (e.g., Facebook, Google, etc.) remains to be seen.
https://www.wsj.com/articles/targeted-ads-headed-soon-to-network-tv-11605016201?mod=business_lead_pos3
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