Buying inventory based on outcomes can help advertisers save costs by lowering inventory wastage on the wrong audience.
Before COVID-19, there was a clear movement in the ad industry towards business outcomes. Companies like A+E, Warner and NBC on the sell-side relied on outcome-based guarantees or optimisation tools, while agencies like Horizon Media on the buy-side planned massive strategic commitments for the business outcomes.
Marketers must engage in measuring discussions that combine the goals of outcome-based guarantees in linear ads with the convergent TV world or TV will continue to lag behind digital. Before fully implementing a convergent TV ecosystem, brands must address concerns around the language, metrics, and assurances of cross-channel planning.
Advertisers can gain insights into outcome-based inventory buying for convergent TV from companies like Facebook and Google, which account for over 35% of the advertising market share. Advertisers should attribute consumer behaviour to TV ads and should have benchmarks or baselines to effectively quantify convergent TV success. Benchmarking can be quantified by having publishers run advertising in the most effective areas.
[2 minute read]