In OTT, What Is ROI? The Whole Value Chain Debates

The panel was cautioned against comparing the emerging technology of addressable TV to forebear marketing channels, just because it exhibits …

SAN JUAN — For decades, the notion of return on investment from TV ads has been ironically straightforward.

Brands would buy ads and, with little insight in to who really watched what, would need to unleash a slew of media mix modelling tools to understand what exposures may have led to which purchases.

That imprecision has led the industry to focus on the half-full glass – TV is an amazing medium for building mass initial awareness, if not for closing a deal with a customer.

Now that over-the-top TV services and addressable TV advertising technologies, which allow for precision targeting, are coming on stream, the industry is contemplating changing the way it trades ads, like offering guarantees on business outcomes, measurable with digital attribution.

For an industry that is worth north of $70 billion in the US alone, the change could be profound. But how quick is it happening? What will the real nature of ROI look like? And who stands to gain?

At Beet Retreat, a panel representing all sides of the value chain – brand, agency, programmer, and technology supplier – was convened to thrash out the issues, concluding three days of debate in Puerto Rico. Here is what they said…

TV is not direct mail

The panel was cautioned against comparing the emerging technology of addressable TV to forebear marketing channels, just because it exhibits similar one-to-one qualities…

Vijay Konduru, VP Brand Sponsorships and Media, Discover

“There’s going to be this inherent reaction to treat addressable TV like it’s direct marketing or direct mail. But, if you benchmark the performance of, let’s say, addressable TV from an ROI perspective, from an effectiveness perspective, it’s never going to perform similarly to direct mail.”

Top of funnel still matters

Addressable and OTT TV ads can laser-guide creative to individual households or even individual viewers, just like digital – very different from conventional mass broadcast. But reaching that mass is still important…

Jonathan Steuer, Chief Research Officer, Omnicom Media Group:

“Awareness matters. The high-funnel stuff, brand-level marketing, actually really matters. In a rush to try to make everything accountable in a direct markety, outcome-based way, you end up minimizing the value of all that high-funnel stuff. We’ve done that largely because we never thought of making TV accountable at all. ”

ROI is a team sport

With so many technological possibilities at play, and the emerging possibility of selling ads only when an attribution can prove they have led to a purchase or other action, the whole notion of return on investment (ROI) is up in the air. But all sides of the value chain are playing the game…

John Hoctor, CEO & C0-Founder, Data Plus Math:

“Agencies, marketers, media folks (are now) partnering on (defining) ROI, which is kind of interesting. We’ll go on a lot of sales calls as the tech provider, as the glue that’s kind of holding it all together, to talk about what sort of outcomes can we measure for this particular advertiser. There’s some advertisers where the outcome is pretty clear, and you can measure it. There’s real budgets going against it. But it has not displaced the GRPs that are out there. But everyone is leaning into it. We’re in tons of these meetings with all of these folks. It’s a super hot topic.”

Turning around the TV ship

New technologies offer advertisers the ability to buy ads on TV in a manner consistent with digital – transacting not just for precise targeting but also buying specific business outcomes. But that is going to need the TV industry to change decades of habit…

Brian Norris, SVP, Audience Sales, NBCUniversal:

“TV has been transacted in a very similar way for the last 50 years or more. We’ve been really vocal about transitioning away from legacy measurement. Marketers by the way, are interested in that, and they’re leaned into it … (moving) into some sort of impact-, outcome-based measurement.”

Ashley Swartz, CEO, Furious Corp:

“But, still, 90% of your business is transacted against the Nielsen guarantee. $10 billion top line … moved against a currency that you and Linda (Yaccarino, Chairman of Advertising & Partnerships at NBCUniversal) and everybody openly express you feel needs to be refreshed. I guess maybe it’s also. ‘Guys, when is it worth the effort?’”

Jump right in

Beet Retreat heard frustration from attendees that many parts of the media-buying landscape still treat addressable TV advertising as a test-and-learn opportunity, with many holding back from significant investment. When could that change… ?

Jay Prasad, Chief Strategy Officer, VideoAmp:

“In 2018, a lot of it was research, so that you can prepare for how you want to start transacting moving forward. So by 2020, I’m hoping a lot of that volume, which is already pretty significant, is now moving into actual delivery, with measurement that is making buyers and sellers, both more effective in what they’re trying to do.”

This video was produced in San Juan, Puerto Rico at the Beet.TV executive retreat. Please find more videos from the series on this page. The Beet Retreat was presented by NCC along with Amobee, Dish Media, Oath and Google.

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Wipro shines more than Infosys, TCS in Q3FY19: Logs 31% rise in Q3 PAT to Rs 2544 crore

Surprisingly, it is Prem Azimji’s Wipro who has outshine in IT services December 2018 (Q3FY19) quarter in comparison to peers TCS and Infosys.

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Stocks in Focus on January 17: NIIT Tech, Hexaware to HUL; here are 5 newsmakers of the day

NIIT Technologies: Reports suggest that the Baring Private Equity Asia Ltd is likely to acquire NIIT Technologies in a deal that may value the IT …

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Google Reportedly Bans ‘Ethereum’ Keyword On Its Advertising Platform

Decenter replied to this, explaining that the firm comprised a group of developers who handle smart contract audits, adding that they had been …

Decenter, a Serbia-based Ethereum startup, has reported that its advertisements on Google are not showing.

The firm, which provides services in smart contracts auditing, states in a tweet posted on January 10, that Google Ads had blacklisted the Ethereum (ETH) keyword.

Google Ads responded via its official account, replying to the Decenter tweet by saying that advertisers could promote crypto exchanges that targeted the United States and Japan on the platform, but that ads targeting other countries may be the reason the startup’s ads got rejected.

Decenter replied to this, explaining that the firm comprised a group of developers who handle smart contract audits, adding that they had been receiving an ‘error message’ whenever they use “ethereum development services” and “ethereum security audits” as keywords.

Google Ads responded to this too, telling the developer group that the Google “wouldn’t be able to preemptively confirm if [the startup’s] keyword is eligible to trigger ads.”

Google’s support team, however, recommended that the group refers to the ‘cryptocurrencies’ section of Google’s policy regarding financial products and services.

Decenter then posted their complaint on Reddit, asking if anyone else in the Ethereum community was experiencing the same thing and whether there had been any changes to the Google Ads policy.

In their open query, the team had noted that any keyword that contained “ethereum” no longer showed in the group’s campaigns. They added:

“The keyphrases such as “ethereum security audits” were simply getting impressions until January 8th and then suddenly stopped, showing only this very ambiguous error as the explanation.”

Screenshot of ETH related error on Google Ads|Source: Decenter tweet, January 10.

The startup further explains on Reddit that they had carried out searches for “ethereum smart contract audits” and “eos smart contract audits”; interestingly noting that only searches about EOS showed ads.

Decenter also notes that the apparent ban does not apply to related words like ‘ico’ bitcoin or eos.

One Reddit user posted a comment that criticizes Google for seemingly not acting impartially. The user notes that the tech giant is bogged down by multiple “political and economic agendas,” and that they willingly “use their various services to promote their preferences.”

” AdSense and Youtube are notorious for this, but there have been some incidents regarding the play store as well.”

Google announced a blanket ban on all crypto-related ads on its platform in March 2018. However, the search engine provider announced in September that it was allowing cryptocurrency related advertising after a change in its policy.

As per the update, the new changes would allow crypto exchange ads targeted for the U.S. and Japan.

Google’s ban on crypto advertising in many other locations will likely not change soon, maybe until the company can finally filter ads that promote crypto-related scams and other fraudulent activities.


Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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Google Reportedly Bans ‘Ethereum’ Keyword On Its Advertising Platform

Decenter replied to this, explaining that the firm comprised a group of developers who handle smart contract audits, adding that they had been …

Decenter, a Serbia-based Ethereum startup, has reported that its advertisements on Google are not showing.

The firm, which provides services in smart contracts auditing, states in a tweet posted on January 10, that Google Ads had blacklisted the Ethereum (ETH) keyword.

Google Ads responded via its official account, replying to the Decenter tweet by saying that advertisers could promote crypto exchanges that targeted the United States and Japan on the platform, but that ads targeting other countries may be the reason the startup’s ads got rejected.

Decenter replied to this, explaining that the firm comprised a group of developers who handle smart contract audits, adding that they had been receiving an ‘error message’ whenever they use “ethereum development services” and “ethereum security audits” as keywords.

Google Ads responded to this too, telling the developer group that the Google “wouldn’t be able to preemptively confirm if [the startup’s] keyword is eligible to trigger ads.”

Google’s support team, however, recommended that the group refers to the ‘cryptocurrencies’ section of Google’s policy regarding financial products and services.

Decenter then posted their complaint on Reddit, asking if anyone else in the Ethereum community was experiencing the same thing and whether there had been any changes to the Google Ads policy.

In their open query, the team had noted that any keyword that contained “ethereum” no longer showed in the group’s campaigns. They added:

“The keyphrases such as “ethereum security audits” were simply getting impressions until January 8th and then suddenly stopped, showing only this very ambiguous error as the explanation.”

Screenshot of ETH related error on Google Ads|Source: Decenter tweet, January 10.

The startup further explains on Reddit that they had carried out searches for “ethereum smart contract audits” and “eos smart contract audits”; interestingly noting that only searches about EOS showed ads.

Decenter also notes that the apparent ban does not apply to related words like ‘ico’ bitcoin or eos.

One Reddit user posted a comment that criticizes Google for seemingly not acting impartially. The user notes that the tech giant is bogged down by multiple “political and economic agendas,” and that they willingly “use their various services to promote their preferences.”

” AdSense and Youtube are notorious for this, but there have been some incidents regarding the play store as well.”

Google announced a blanket ban on all crypto-related ads on its platform in March 2018. However, the search engine provider announced in September that it was allowing cryptocurrency related advertising after a change in its policy.

As per the update, the new changes would allow crypto exchange ads targeted for the U.S. and Japan.

Google’s ban on crypto advertising in many other locations will likely not change soon, maybe until the company can finally filter ads that promote crypto-related scams and other fraudulent activities.


Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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