projected that the current distinction between “media” spend (TV, digital, print, radio, outdoor and cinema) and “below-the-line” marketing spend (price promotions, PR, sponsorship, direct mail and telephone marketing) would continue to blur in the future of advertising.
This co-branded television campaign by Tylenol and Stop & Shop targeting caregivers is a perfect example. Further, with advances in data-driven television ad buying and the scale that can now be achieved through household-level addressable TV, consumer packaged goods (CPG) manufacturers should rethink how they allocate their marketing dollars in order to truly capitalize on their targeting and partner strategies. In other words, the ability to use rich datasets beyond age and gender demos for TV planning has created a real opportunity for CPG manufacturers to use TV to reach individual consumers with messaging that drives specific behaviors.
Today, more than half of CPG marketing spend goes to below-the-line tactics, including trade and consumer promotion and shopper marketing. On the other hand, according the Cadent Consulting Group, only 13.3% was spent on traditional advertising in 2017. It’s incredible to think that only a portion of this was used to create some of the most impactful ads of our time: Always’ #LikeAGirl, Ariel’s #SharetheLoad, and Dove’s Real Beauty Sketches, to name a few. Advanced TV offers boundary-pushing brands a prime opportunity to connect their big, beautiful ads to below-the-line tactics in a concerted, measurable manner.
While below-the-line tactics often prove effective at driving volume, they rely heavily on price discounts to drive action and do little to grow brand equity — a gap that TV ads fill nicely. With advances in TV targeting, CPG brands can avoid becoming pigeonholed; they can avoid a scenario where they are only known for being inexpensive relative to their competition.
Here are three advanced TV strategies that CPG manufacturers can consider to drive real value and results in a time where consumers value personalized, meaningful experiences to drive brand loyalty.
1. Optimize National Linear Investment to more closely align with both the purchase behavior and media consumption habits of high-value consumers. CPG manufacturers that are looking to target a specific audience (e.g., moms with kids in the household that also purchase organic products) can use rich data sets from third-party providers like IRI, Kantar Shopcom and Nielsen Catalina Solutions, or increasingly, second-party data through their retail partners, to identify the specific TV networks and dayparts where this audience indexes the highest. In doing so, advertisers will not only more efficiently reach their actual target consumer, but they can better allocate spend to the times of the day and week that are adjacent to prime shopping periods. Almost all major cable networks have enabled a data-driven capability, and Open AP — the consortium comprised of Fox, Turner, Viacom and…