3 Challenges Linear TV Presents For Today’s Marketer

General Sep 15, 2016

A new white paper from Krux examines the future of video advertising across channels. Here's an excerpt.

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For most major brands, linear TV continues to receive the lion’s share of their media budgets, accounting for 36.5% of all ad spend in 2015. But linear TV also presents significant challenges for today’s marketers, leading Forrester to predict that digital ad spend – infinitely more measurable – will overtake TV ad spend in 2016.

Three critical challenges that Linear TV presents for today’s marketer:

  • TV has a Measurement Problem. Digital advertising has fundamentally changed the marketer’s view of the world. Thanks to cookies, IDFAs, cross-device identification, attribution and numerous other innovations, marketers can track who sees their ads, on which devices, and determine whether those investments actually resulted in sales. Contrast that with linear TV, where an ad’s impact on sales requires massive investments in consumer surveys and research.
  • GRP and Nielsen MarketBreaks Don’t Cut it Anymore. Digital advertising, particularly programmatic, has taught marketers the value of targeting their message to the right individual at the right time. GRPs and MarketBreaks are far too broad for today’s marketer. They want the same level of efficiency they enjoy in digital channels, which means focusing their ad spend on the exact programming and day parts that are over-indexed with their audiences.
  • Millennials Don’t Do Linear TV. Millennials are certainly avid fans of today’s breakthrough TV shows, but they’re no fans of the traditional TV tune-in model. In fact, 19.6% of millennial households don’t even subscribe to cable or satellite TV. Instead, TV is consumed on a multitude of devices – laptops, mobile phones, tablets, OTT boxes– whenever and wherever they choose to consume it. This is a significant development. Millennials are the largest generation of consumers in the history of the U.S., and their spending power is vast. By 2017, Millennials will collectively spend $200 billion annually and  some $10 trillion in their lifetimes.

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This post is excerpted from a new white paper from Krux, Connecting Linear TV & Digital Media Investments to Drive Campaign Efficiency. Download the full paper.