NEW YORK: Audience-targeted TV ads produce better business outcomes than traditional buys, or your money back.
That's essentially the offer being made by Simulmedia, which has pioneered a digital approach to linear TV advertising. "We directly connect ad placements with the business outcomes they deliver to show that properly targeted TV ads have bottom line impact," said Dave Morgan, the company's CEO.
He argued that the current system, whereby marketers only know that their ads are served in a context that promises to reach viewers meeting certain demographic specifications, should be consigned to the past.
"We want to change the media conversation to business outcomes," he declared. "While reaching TV audiences at scale is getting harder, we take the risk out by showing – and guaranteeing – that audience targeting can and will impact sales and revenue."
So sure is he of this claim that if marketers agree to spend $1m via its Audience Network for one month, Simulmedia will guarantee a higher Return on Ad Spend (ROAS) against any designated target business outcome as compared to their concurrent TV advertising base campaign.
It can do this by matching up TV ad delivery with credit and debit card data for more than 60m households across the US.
"If we fall short on ROAS," said Morgan, "we will make good on the percent of the benchmark that we fall short, in the form of future media credits."
It's a bold step but Morgan maintained that "the best and easiest way to shift the conversation with TV buyers and advertisers from [ratings and demographic buys] to business outcomes was to guarantee the outcome".
The Wendy's Company, owner of the eponymous quick service restaurant chain, is typical of the sort of advertiser Simulmedia wants to attract. Tim Sullivan, vp/media at Wendy's admitted to the Wall Street Journal that much of his planning and buying of TV advertising was not based on business results but classic benchmarks like ratings and reach.
"I like it," he said of the guarantee on offer. "We plan on exploring this more – they must be pretty confident it will work if they are offering these kinds of terms."
Data sourced from PR Newswire, Wall Street Journal; additional content by Warc staff