Since the summer of 2020, targeted advertising campaigns have offered certain viewers spots based on their location, the composition of their household or other personal criteria. While marketing usually struggles to measure the impact of such advertisements, it appears that some metrics still provide relevant information.
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What is targeted advertising?
The concept of targeted advertising designates advertising addressed to a household on the basis of geolocation, socio-demographic criteria and the centers of interest of the households, as well as on data that the advertisers hold.
Concretely, this means that a family of four living in Royan no longer sees the same advertisements as a single person living in Savoie, for example. This is in line with the targeted advertising that you can already see when browsing the internet.
For the moment, only TF1, France Télévisions and M6 are adapting their advertisements to their viewers.
This type of advertising has been authorized since August 2020. Several rules have already been established to avoid excess. Channels are prohibited from showing targeted advertisements during children’s programs. These advertisements should also be limited in terms of volume. The exact coordinates of the businesses will not appear on the screen. Advertising must also specify that it is not shown on all screens.
How does targeted advertising work?
Almost any household can receive targeted advertising, at least logistically. In fact, for targeted advertisements to be broadcast on a screen, the household must receive television via its internet box or via a connected television. 63% of households can be reached by these advertisements.
From a purely technological point of view, the players in the sector speak of a “challenge”. Indeed, the targeted advertisements are downloaded thanks to the Internet connection and replace the traditional spots. The goal is for viewers to see no difference or cut.
Beforehand, the advertisements will have been chosen according to a number of factors. Their price at “cost per thousand” viewings will, for example, have been defined in advance. On the customer side, the operators asked them for their consent before any targeted advertising was broadcast. The director of the “Value Factory” of Bouygues Telecom ensures that three quarters of the customers questioned have given their agreement.
Why do targeted advertising on television?
Targeted advertising makes it possible to send spots to French households that are more in line with the needs and desires of consumers. For example, those of them who live in the countryside are likely to see pubs for barbecues or even 4x4s, while those who live in cities will see more spots extolling the merits of home gardens or electric cars.
It is still possible to refine the selection of content when in addition to the place of life, advertisers can know the socio-professional category of their customers. Thus, a person living in a difficult neighborhood and another living in the middle of Paris will not see the same advertisements.
Thanks to this type of advertising, professionals can hope to see their activity grow, or new customers will join them. Where before, they would not have been able, or had no interest, to create an advertising spot for fear that the fallout will be zero, they can now hope to reach their core target.
What data becomes essential?
In order for this type of advertising to be displayed, certain “prerequisites” are necessary. Responsibility for operators to transmit various information, such as the geolocation of households or viewing habits.
Internet service providers will inform advertisers about the number of telephone packages in the same household (which provides more or less precise information on the composition of households), whether there is a subscription to channels intended for young children or for channels dedicated to sport (which can give an idea of the age of the members of the household), or the existence of one or more subscriptions to video on demand services (these provide information on the level of consumption TV from the foyer).
Through possible partnerships forged with technology experts, this information could be enriched with purchase data from advertisers.
Information shared between one and the other is excluded from data resulting from Internet browsing of households or relating to their invoicing.
Targeting can be refined, thus allowing advertisers to send different advertisements to two households in the same building.
What is the benefit of targeted advertising for marketing?
Thanks to this targeting of the population, professionals benefit from ultra-localized communication in their catchment area. And when their services are aimed only at certain metropolises and not at the entire territory, it saves the costs generated by a national campaign.
Where marketing can intervene is in the extent of the impact of an advertising campaign. This could be, for example, to check if the brand’s site is experiencing unusual traffic, if the stores receive more visitors or if more people are asking for quotes (depending on the advertiser’s industry) .
It is possible to draw a parallel between targeted advertising on television and paid advertising on social networks. Here too, it is possible to choose your target. The strength of social networks is that they offer more performance measures. For television advertising, the measurable impact is closer to that of PR. For example, you will find in the markers to watch the increase in the visibility of the brand on the market. This is reflected, in surveys, by more people familiar with the brand in question.
Targeted advertising also allows advertisers who once could not / would not access advertising to run spots. This therefore allows their marketing strategy to invest in a new channel and capture new customers. For example, the builder of swimming pools in the Dordogne could finally see its regional offer appear on the small screens of French homes.
How to measure the impact of an advertising campaign?
To measure the impact of a targeted advertising campaign, it is quite possible to use the same indicators as for a classic campaign, without targeting. It would suffice to refer to the following indices:
The idea is to measure the audience when the advertisement is on television, while relying on the GRP (Gross Rating Point). This acronym designates a calculation estimating the probabilities that the advertisement has been seen by the target.
Carrying out tests after the broadcast of an advertising spot allows advertisers to better understand the impact of said spot. These tests consist of questionnaires, submitted to a panel. With the results in hand, advertisers will be able to check that the target has understood the message, whether the brand’s image is improved by the distribution of the spot or whether the target has retained the content of the advertisement.
Viewers are 3 in 4 to consult a second medium when watching television. It is therefore possible to measure the impact of a targeted advertising campaign by focusing on specific indicators, such as website traffic.
The drive-to-web is based on several indicators:
- Audience indicators
It is possible to know how many targeted people were interested in the product highlighted by the advertisement. Thanks to the drive-to-web, it is possible to obtain an indicator as to the nature of this audience.
- ROI-related indicators
When a business is pursuing sales goals, it can refer to the ROI of its advertising campaigns to ensure that they are beneficial to them. All she will have to do is ensure that her sales or the add-to-cart rate increase.
- Awareness indicators
More often than not, brands like to be on TV. This is not surprising since this support allows them to benefit from a certain notoriety in a short time. To measure its impact, it is possible to refer to the entries in the various search engines or to count the new subscribers on all the social networks.
- Behavior indicators
These indicators allow advertisers to better define how their audience uses the site or application. For example, they will know how long Internet users have been on the site’s pages, from where they were directed to a particular page, how old they are, etc.
The end of the puzzle with “social CRM”?
The acronym CRM (Customer Relationship Management) brings together two concepts: that of customer relationship management, and the tool that allows said management.
The management of the customer relationship is done through the knowledge and grouping in one “place” of all interactions with him.
Social Media management, which combines the management of social media as well as the use of the data conveyed therein, improves marketing actions and helps a business develop.
Some experts see in this tool the possibility of more accurately measuring the impact of a targeted advertising campaign.
The problem with this method is that it does not allow you to know who comes to the company site or comes to the store after the advertisement has aired.
Fortunately, other avenues for reflection emerge:
- The use of a QR code, which would allow tracking of the page or application visited via the QR code;
- The use on the site of a form indicating how customers found out about the brand or the offer;
- Using a promo code, to attribute sales to advertising.
To go further, download this free guide to evaluate the digital experience provided by your company and improve your online interactions with your audience.