Broadcaster VOD benefits from ‘rebalancing’ and retailer tie-ups

Advertisers are planning to invest more in broadcaster VOD and less in linear TV as they rebalance their spend, says the CEO of Thinkbox; it’s a trend that recent retailer tie-ups may accelerate. 

What’s happening

Lindsey Clay was responding to an ISBA survey that found two thirds of the UK’s largest advertisers plan to make their deepest budget cuts on broadcast TV. “This is a rebalancing that has been happening for a while,” she said. “They’re changing how they use TV as it evolves. Total TV advertising will be resilient.”

Meanwhile, broadcasters and retailers are entering into tie-ups that match logged-in viewer data with loyalty club or member data with the aim of making advertising more effective and measurable.

Why it matters

The tie-ups are in part a response to the deprecation of third-party cookies and will enable advertisers using the media networks of the particular retailers to better target consumers watching the relevant broadcaster and then measure any subsequent sales impact. IAB Europe estimates that the European retail media market is worth some $8.5bn, so more deals are likely to follow.

Who’s doing what?

• ITV has signed a deal that will match its own first-party data on its ITVX platform, which launches next month, with that from Tesco’s Clubcard and Boots’ Advantage Card databases, The Drum reports.

• Channel 4 has tied up with the Nectar loyalty program, used by Sainsbury’s, to enable advertisers to run addressable campaigns through its VOD service and chart the results. Matching data can be used to create audience segments, a process already being tested by two PepsiCo brands – Walkers Baked and Pepsi Max – McCain and L’Oréal.

Sourced from The Drum