In 2018, TV advertisers in the United States spent nearly 70 billion USD on TV commercials.
That may seem like an enormous sum but it continued a decline that started in the mid 2000s, as the traditional “television audience” declined, as well.
As a result, advertisers, through their agencies, will spend even more than that on mobile and web advertising with the number expected to double by 2023.
Technology Forces Change in Advertising
With the advent of DVRs, came the ability for TV viewers to skip over commercials. At the same time, commercial-free subscription services like Netflix and Hulu were launched and have grown into behemoths in roughly a decade, starting to tearing down what took television 6 decades to build.
The advertising world – and the world of television – has been turned on its head; what was the usual and predictable way to spend ad dollars is gone and new methods are being created and tried out.
For TV networks and cable companies, it’s been a time of confusion as they scramble to assemble attractive ad packages for their clients in a time of shrinking TV audiences, more and more of whom each year are cutting their ties to cable and moving to streaming content.
Television Struggles to Stay Relevant
It’s imperative for television companies to know as much as they possibly can about their clients, the advertisers: what their spends will look like; how those spends will unfold – will the budgets mostly go to web-based content or live special productions like the Super Bowl and other top-flight sports and entertainment one-offs?
Fox knew it needed to get a handle on its advertising clients and their spending patterns and plans but it didn’t have any means by which to begin that task.
The company contacted Gerent, looking for advice and answers.
Disjointed Data Leads to a Snowy Screen
What Gerent uncovered was a situation where data was scattered in various silos within the company, stored mostly on personal spreadsheets – perhaps the ultimate silo.
As a result of a complete lack of coordinated information, Fox had no idea how much each of its advertisers was spending or planning to spend. Any forecasting the company did was little better than a guess.
What the company lacked, Gerent explained, was a technology solution to track advertisers and their brands, their ad agencies - even their parent companies. Any updated advertising deals that the company was offering couldn’t be shared effectively with the decision makers controlling the budgets.
Knowledge sheds light and the company was often in the dark.
Gerent proposed a two-phased approach for its new media client that includes the following elements:
- Salesforce Sales Cloud
- Partner Communities through Community Cloud
- Wave Analytics
The first phase is aimed at ad agencies with phase two (utilizing the same Salesforce elements) bringing in the actual advertisers, themselves.
Along with Sales Cloud, Partner Communities and Wave Analytics, Gerent will roll out Seismic, a third-party application that generates context-perfect content recommendations by using and analyzing data from the Salesforce CRM that Gerent has designed.
Wave Analytics permits the company’s sales force to use a mobile app that works with large data files to create graphs, PowerPoint displays and other illustrations by drilling down into key aspects of a business. It also integrates with the company’s own system to bring ad data directly into Salesforce.
Through Community Cloud, the Fox will finally be able to share real-time information with agencies and advertisers and permit two-way communication by connecting and facilitating electronic interactions.
Poised to Take Action
The company now has the capability to generate a 360 degree view of its clients, their brands and associated spends. This is driving more focused business decisions on which agencies or advertisers to target and when.
It can now offer more insightful advice to its clients that will enable them to make better business decisions.
The Gerent-tailored solution also allows the television company to be able to pinpoint how, when and on what an agency or advertiser will spend ad dollars – powerful insights that it never had before.
At a time when technology is creating a tsunami of change in advertising and agencies are looking for the best platforms on which to spend, a television company needs an arsenal of analytical weapons to make a difference and remain relevant.