Blockgraph outlines new path for data-driven TV | Ad Tech | News | Rapid TV News
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Blockgraph, an initiative spearheaded by advertising technology firm FreeWheel and its industry partners has released a new whitepaper containing research finding advertisers expect 40% of their TV advertising will be data-enabled by 2020.
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The whitepaper, Building the Future of Data Driven TV: The Quest to Create a Safe Identity Layer For The Industry, explores the current approaches for data sharing in the TV industry and in addition to proposing a new approach to secure use of insights in ecosystem, presents the findings from a new research survey of over 150 advertisers and agencies, commissioned from Advertiser Perceptions, on the challenges, opportunities and importance of bringing advanced data to television advertising.

According to the survey, the mean percentage of advertisers’ total TV spend that is data-enabled — using data to improve planning, targeting and/or analyse attribution — has grown at a 42% three-year compound annual growth rate to 20%. In addition, the research suggests that it would appear that data-enabled TV growth is about to accelerate in 2020.

Yet historically, the TV advertising ecosystem has faced a number of challenges. These include an increase in content options and distribution channels making it difficult to build a 360-degree view of an advertiser’s targeted audience. Among advertisers, over a third (36%) said identity resolution was one of the top three barriers preventing them from using data to build audience profiles; only 20% said that they could “easily develop a 360-degree view” of their audience.

Audience relationships and advertising rights were found to be split between a number of distributors and content owners, creating a complex ecosystem of data ownership and sharing. The survey indicated that 54% of advertisers were concerned about competitive leaks when sharing information with media partners, even via a trusted third-party provider, and only 5% had no concerns about sharing data with media partners.

All of this supply chain complexity places greater demands on companies to ensure consumer privacy and data security. Among advertisers, 79% said protecting consumer privacy was a top concern in 2019, up 10% over 2018.

In addition, the survey showed that operational and coordination challenges were making the data matching process inefficient in terms of turnaround time and expenses. Nearly two-fifths of advertisers cited this as a top-three barrier preventing them from using data to build audience segments for TV.

“The findings confirmed that advertisers are eager to bring additional data to TV, similar to their use of data in digital media. Yet, there is also the recognition that TV is different,” said Blockgraph general manager Jason Manningham commenting on the Building the Future of Data Driven TV research. “So, while they are bringing more data to TV, the growth, albeit strong, is actually tempered a bit by today’s challenges...Chief among our objectives is making data both easy to use by marketers and safe for data owners and their audiences. But it’s always helpful to understand how advertisers are thinking about data holistically, and the challenges that they are facing when it comes to data-driven TV. That was the impetus for our research.”

Considering that data is the cornerstone to almost all of the innovation that will make TV a smarter, more efficient, more effective advertising vehicle, we need to solve the sizable challenges that still surround data sharing and activation,” added FreeWheel general manager Dave Clark.