New TV Perspectives Series Explores Video Delivery Ecosystem
MARLBORO, Mass. – Mercury Media, the largest privately-owned, full service direct response media agency in the country, released the first installment of TV Perspectives, a series of white papers authored by Michael Goodman, Senior Director, Research and Analytics for Mercury Media and former Director, Consumer Research at Yankee Group. The series will explore innovations in cross-platform advertising with a focus on direct response television.
The first piece in the series, titled “The Power of Television,” highlights television’s continued viability as an advertising medium and explores how networks and content providers are using emerging video platforms and market segmentation to grow their audiences and improve their offerings to advertisers.
“Television advertising is not dying,” said Goodman. “Rather than fragmenting the marketplace, emerging video platforms like broadband and mobile TV are acting as audience multipliers.” Goodman points to innovations like Addressable TV, TV Everywhere and Interactive TV as leading the evolution toward “a harmonious video delivery ecosystem.” These platforms have the potential to generate qualified leads and drive sales in record numbers. “Rather than cannibalize traditional television, emerging video platforms, like Hulu, cable VOD and FLO TV, are supplementing viewership and creating new revenue streams for programmers,” said Goodman.
Among Goodman’s top findings are:
TV is still the #1 screen. Television viewership remains at hundreds of hours per month, while viewership of broadband and mobile video remains in the low single digits. It is reckless to proclaim that any great revolution is taking place.
Consumers want utility not glitz from ads. Consumers are not looking to be entertained by ads. Rather, they want ads that demonstrate the utility of a product or service or solve a problem. Ads should contain calls-to-action, such as an incentive, and give consumers the opportunity to engage with brands through dedicated telephone numbers or URLs.
Advertising must be accountable. Metrics like brand awareness, ad recall, persuasion and engagement are insufficient measures of campaign performance. These metrics provide useful insight but do not measure effectiveness in generating leads and driving sales. This is the criteria upon which all ad campaigns should be measured.
Direct response advertising creates brands. All advertising leaves an impression about the advertiser, whether its purpose is to create awareness or produce orders. Direct response advertising influences all those that it touches, not just those who respond, so ads need to send a conscious message about the brand, in addition to generating a response.
Addressability comes at a cost. The downside of addressable advertising is higher CPMs (cost-per-thousand viewers), but if addressable advertising allows you to get better-quality leads with either a higher profit per sale or higher conversion rates, then it is a worthwhile investment.
About Mercury Media
Mercury Media is the largest privately-owned, full service direct response media agency in the country, headquartered in Marlboro, Massachusetts with an offices in Santa Monica, California and New York City. The agency launched the first full service Hispanic direct response specialty practice, Mercury en Español, in 2009. Established in 1989, Mercury Media specializes in long form, short form and digital direct response advertising and is committed to providing its clients with best-in-class measured media solutions across multiple platforms to achieve their strategic objectives and maximize their return on investment. By leveraging its unparalleled experience in direct response media and cutting edge analytics, the agency develops and executes innovative media campaigns that deliver superior results. For additional information regarding Mercury Media’s clients, services and expertise please visit: www.mercurymedia.com For original articles, please visit The Mercury Index Blog at www.mercurymedia.wordpress.com. Follow us on Twitter: www.twitter.com/mercurymediadr
