Advanced TV KPIs: How to Measure Success
As consumers move away from traditional TV, marketers need to adapt and change the way they’re measuring the success of TV campaigns.
Gross rating point (GRP) has been the bedrock of traditional TV advertising, to the point where there is even a saying that “no one loses their job buying GRPs.”
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In simplest terms, GRP is the calculation of which demographics are watching a certain program. For example, when running an ad on a new hit sitcom, you can calculate that during one of the commercial breaks, you will hit mostly women aged 18-49. You’ll hit everyone else watching as well, but the majority will likely be this demographic.
Measuring success in traditional TV advertising boils down to calculating GRP and ultimate sales lift (or web traffic lift, downloads, etc.). In other words, the broad strokes of who are we hitting with your message and how much bottom line has shifted (hopefully as a result of your message).
Advanced TV introduces programmatic technology to this equation and opens up a world of new KPIs modern marketers can use to increase and prove ROAS.
Why You Need to Move Beyond GRP
GRP is the calculation of your audience based on a rating system where each demo has a different weight. In the traditional approach, audience targeting is projected using this calculation. Afterwards, you get a report on how many people actually watched your ad.
This approach doesn’t hold when it comes to Advanced TV because audience figures alone cannot capture the full picture of campaign performance. The potential of programmatic technology means you can now:
- Utilize third-party data
- Precisely target your audience
- Coordinate Advanced TV with other channels
- Monitor performance in real time
- Use a whole new lexicon of metrics
All these inform which KPI you should consider when using Advanced TV. It opens the door to detailed audience profiles, actionable insights, real-world attribution (e.g., foot traffic), and a more complete, real-time picture of ROI.
What You Can Use Instead
Examples of Advanced TV KPIs LumenAd uses:
- VCR (Video Completion Rate)
But that’s just the tip of the iceberg. An example of a KPI you could use in an Advanced TV campaign is cost per visit. Say you’re a retail store looking to increase foot traffic in a specific geographic area.
- First, you get specific with your targeting by utilizing third-party geographic and psychographic data.
- Next, you partner with a location attribution partner (like LumenAd partner Cuebiq) to measure who visits your store after seeing one of your ads.
- As your campaign develops you use retargeted display ads to keep your message top of mind.
- Throughout the life of the campaign you can measure the lift in foot traffic and see how other channels work with Advanced TV to achieve your goals.
To facilitate this, as tvtechnology.com says, you need a “provider deliver an apples-to-apples comparison of digital, mobile and other advertising mediums using the same metric.”
LumenAd is such a platform. It unites all data, channels and vendors (like Cuebiq) into one hub for accurate, easy to understand cross-channel performance. If you’d like to see how it works, schedule a demo today.
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