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Political advertising has advanced significantly in recent decades. Historically, campaigns had limited options for where they could advertise, and those channels had limited inventory. Political campaigns primarily relied on radio, print, and linear TV to reach voters, using mass marketing strategies to appeal broadly to unspecified audiences. These mediums had limited targeting capabilities and provided few data insights. However, this has all changed thanks to the rise of technology and changing media consumption habits.
With the advent of the internet and the emergence of various digital channels, political campaigns now have more inventory and options for getting their message out there, including connected TV (CTV) — a subset of advanced TV that has become a predominant channel for digital ad spend. CTV is the fastest-growing medium for political ads, with the upcoming 2024 election expected to see $1.5 billion in CTV marketing ad spend (nearly half of all political digital advertising dollars!). CTV’s share of political ad spending is set to jump from 2.7% in 2020 to 12.8% this year. The Harris campaign is leading the charge, allocating $200 million for digital ads, much of which will go to streaming platforms.
CTV advertising promises to be an effective method for political campaigns trying to reach voters with personalized content in 2024. Let’s look at CTV political ads a little closer and overview the implications for your political campaign.
The growth of CTV in political advertising
CTV has become central to political ad strategies in helping campaigns gain exposure through targeted, personalized ad experiences to specific audience segments based on demographics, behaviors, and interests. With CTV advertising, political campaigns have become more adaptable to changing viewer preferences and can ensure their messages resonate with diverse audiences across digital platforms. This strategy represents a critical opportunity for political campaigns to tap into the growing viewership of streaming and adjust their marketing plans to meet voters where they spend their time.
Although traditional broadcast TV remains at the forefront of political advertising, recent increases in CTV political ad spending in 2024 reflect shifting media consumption preferences toward streaming services. Today, the average American adult spends almost 2 hours per day on CTV devices. It’s worth noting that CTV has the most significant audience share with Millennials, which makes CTV an especially worthy investment for targeting the younger generations whose voting habits aren’t as established yet.
2024 political ad spending
Compared to the previous U.S. presidential election year in 2020, campaigns and interest groups are expected to increase their political ad spending promoting causes and candidates by almost a third in 2024, totaling approximately $12.32 billion, according to Reuters. This is said to encompass all advertising for federal, state, and local politics, including lobbying and election activities.
While traditional media still dominates political ad spending, digital platforms are growing, with 45% of digital ad spending projected to be allocated to CTV for its refined targeting capabilities and increased inventory in this election cycle. For reference, only 19% of digital political ad spend went to CTV in 2020.
While the presidential election tends to garner the most attention among voters, it’s essential to note that political ad spending goes well beyond the big race; over 500 seats are up for election in 2024. Down-ballot races and issues in state and local elections will significantly impact where ad dollars are allocated.
Experian’s relevant ballot initiative audiences
If you’re looking to reach voters based on their attitudes and behaviors around crucial ballot measures, Experian offers over 240 politically relevant audiences that can help. Our consumer behavior and interest audiences can fine-tune your targeting for local and national ballot initiatives if, for example, you were targeting military families who favor initiatives supporting veterans or households with children interested in supporting school funding. This precise targeting ensures your political ads reach the most receptive audiences and maximizes the impact of your ad spend.
Third-party cookie deprecation and CTV
The phase-out of third-party cookies has created a challenge for political campaigns relying on digital advertising strategies. In the past, political advertisers have used cookies to track a user’s web activity to understand their browsing behaviors across sites and create detailed profiles for targeting purposes. However, due to recent changes in online privacy regulations, third-party cookies are going away.
Political advertisers have recognized the need for innovation and are exploring new avenues for effectively reaching target audiences without third-party cookies. CTV has arisen as a promising solution, as it doesn’t rely on these cookies to paint a picture of audiences and offers an alternative for precise, privacy-compliant targeting and ad spend optimization. CTV publishers tend to know quite a bit about audiences, including their viewing habits, location, preferred CTV devices, and more — and utilizing this information can give your campaign deeper, more accurate data without invading user privacy.
Benefits of CTV over traditional TV advertising for political campaigns
CTV political ads are a great way to familiarize a candidate’s core audiences with their message and engage them with the campaign. Here are some specific ways a political campaign can benefit from CTV in its advertising strategies.
Broadened access to data
Traditional broadcast and cable TV are a means of one-way communication. This means viewers consume broadcasted content without direct interaction or a feedback loop for tracking engagement and behavior data.
CTV solves the limitations of traditional TV by offering access to more data than linear TV using technology and internet connectivity to gather real-time insights. CTV data on audience interactions, preferences, demographics, behaviors, location, income, and more enable precise targeting and tailored messaging for more impactful campaigns. Furthermore, digital infrastructure enables CTV devices to track clicks, ad impressions, and conversions, which marketers can use to understand interests, viewing habits, and audience demographics more effectively. To sum it up, CTV broadens the scope of data available for political campaigns to refine their targeting.
Targeted, personalized ad experiences
With traditional TV advertising, marketers have historically had to rely on mass marketing strategies, broadcasting ads to a general audience and hoping to reach the right demographic segments. This imprecise approach limits a marketer’s control over who sees their ads and wastes time and money.
In contrast, CTV platforms can collect abundant data on viewer behavior, preferences, and demographics, helping advertisers precisely target audiences and reach groups most likely to benefit from the ads. With CTV, advertisers can segment audiences based on gender, age, interests, location, and past viewing behavior. This level of granularity enables them to customize their messages to resonate with specific people and increase the relevance and effectiveness of their political ad campaigns. By delivering ads to the right groups of people at the right time, CTV helps advertisers maximize campaign impact and drive better results.
It’s worth noting that streaming viewership is beginning to change. Although younger generations have engaged the most with CTV, there is research to show that older generations are starting to help fuel its continued growth. Gen X and Baby Boomers have begun to embrace streaming and seek out ad-supported services to ad-free alternatives. These gradual shifts in behavior highlight the importance of understanding streaming generations to reach target audiences effectively.
Real-time ad campaign optimization
While traditional TV relies on fixed ad placements, CTV offers programmatic buying, which refers to buying and selling ad placements on CTV through automated technology. Programmatic CTV advertising is highly data-driven, which gives advertisers flexibility in their messaging strategies, helps them refine their targeting, and deliver relevant ads to the right people at the right time. With real-time analytics, campaigns can monitor ad performance, adapt to changing circumstances, and make data-driven decisions to maximize advertising impact and budget efficiency leading up to the election.
Challenges and considerations for advertisers
Despite how widely beneficial CTV advertising can be for political campaigns, marketers also need to be aware of its limitations.
Navigating ad fraud
Ad fraud is a major problem for unsuspecting advertisers. CTV ad fraud involves fake CTV devices or bots mimicking viewership and cheating marketers into paying for unviewed or non-existent ad placements. According to DoubleVerify’s Global Insights, CTV bot fraud increased nearly 70% in 2022 compared to the previous year, with CTV fraud instances tripling since 2020. In 2023, digital ad fraud cost the marketing industry $84 billion. These ad fraud schemes are rising due to the high CPM of CTV ads, leading to a bigger payout for fraudsters who steal ad dollars.
One of the primary challenges is the need for better technological safeguards to detect and mitigate illegitimate traffic, such as bot activity. Political advertisers often rely on third-party ad fraud and verification technologies to avoid falling victim, but these solutions cannot guarantee complete protection. This usually leaves advertisers unaware of fraudulent activities until they’ve already incurred financial losses.
As political campaigns increasingly embrace CTV political ads, they become bigger targets for fraud and must make protection and measurement central to validating their campaign efficacy in conjunction with robust fraud detection measures. These efforts can help protect the integrity of political ad campaigns, mitigate fraud, and ensure messaging reaches genuine voters.
Ensuring ad effectiveness
Measurement and attribution of CTV political ads can be challenging. CTV offers better insights into audience preferences and behavior than linear TV, but despite the existing measurement tools, CTV is fragmented, involves many platforms, and lacks standardized metrics and attribution models tailored to political campaign goals. These problems make it hard to compare campaign performance, track CTV users across their viewing experience, and ensure ads appear in the right environments.
To fully understand your ad effectiveness, you should ensure accurate tracking mechanisms of audience behaviors with individual ads to assess the impact of CTV campaigns on voter engagement and turnout. This will help you better understand how to achieve campaign objectives, where to focus your efforts, and how to appeal to viewers in future campaigns.
It may also be helpful to understand some of the metrics advertisers currently employ for CTV measurement, including completion rate and return on ad spend (ROAS). Because CTV ads often can’t be skipped, this advertising strategy has a high completion rate, sometimes nearing 90%. ROAS is more focused on what you get in return for your ads, allowing you to track profits per dollar spent on ads. Political marketers can also use metrics like campaign impressions, total reach, view-through rate, and cost per completed view to understand how their ads are performing.
Ethical considerations related to transparency and misinformation
Political advertisers are responsible for upholding transparency and accuracy in their messaging to build trust with voters. Given how polarized the current political climate is, misinformation could make or break a political campaign. Whether intentional or unintentional, spreading misinformation through CTV can undermine the democratic process and erode public confidence in political institutions. Political marketers must do their best to prioritize ethical conduct, adhere to regulatory guidelines, and ensure their ads convey truthful information to voters.
Looking ahead: CTV in the 2024 elections
The current election cycle promises record-breaking political ad spending in 2024 and will underscore CTV’s role in shaping the future of political communication and engagement. With shifting viewer preferences and the ongoing evolution of digital media consumption habits, political campaigns need to look at CTV as a critical platform for voter engagement so they can allocate resources and shift their strategy to harness its full potential.
Using the targeted capabilities and expansive reach CTV advertising offers, political entities can optimize ad creative for the streaming environment, implement data-driven targeting strategies, and effectively connect with voters across diverse demographics and geographic regions.
Reach your ideal voters with Experian’s political audiences
Effective audience targeting is essential for political campaigns wanting to sway voters and shape public opinion in the next election. Don’t miss the opportunity to reach your ideal voters and make a lasting impact in the 2024 elections! With Experian’s political audiences, you can target voters based on their political affiliations, personas, and attitudes toward relevant ballot initiatives in your advanced TV advertising.
Experian offers a comprehensive range of political and geo-indexed audiences designed to help political campaigns and organizations connect with desired segments in a meaningful and impactful way. Our geo-indexed audiences can help you discover, segment, and craft messaging without the use of sensitive personal information, so you can confidently reach your target audience without sacrificing data privacy.
Our syndicated audiences also span multiple verticals and categories. With over 240 politically relevant audience segments available for activation, you can confidently execute your political campaign marketing strategy with precision and impact. When you connect with our audience team, we can also help you build and activate an Experian audience on the platform of your choice.
Partner with us to reach your ideal voters and make a lasting impact in the 2024 elections.
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In this article… Benefits of retail media for advertisers Retail media network use case: Experian's impactful marketing attribution with a discount store giant Kroger Precision Marketing’s newly announced platform Home Depot retail media Amazon retail media Walmart retail media The future of RMNs Retail media networks (RMNs) are an exciting innovation within the advertising industry. A retail media network refers to an advertising platform that a retailer owns, providing marketers with the opportunity to buy advertising space on the retailer's digital platforms as well as extend their reach offsite with key platforms the retailer has partnered with to open up their media buying to advertisers. The retailer uses first-party data and customer insights to create new advertising opportunities and connect with shoppers throughout their buying journey. In this article, we’ll discuss the significant advances in retail media trends and technology — and their implications for the future of advertising. Benefits of retail media for advertisers Every online impression counts in the digital era, making retail media especially advantageous for advertisers. It yields new opportunities for advertisers to thrive, which we’ll discuss below. Get access to first-party data First-party data is a valuable asset for advertisers. Retail media networks offer advertisers direct access to customer insights from the retailer's data vault, which helps them create highly personalized ad campaigns and connect with current and potential customers. Custom marketing options for each brand Retail media provides brands with various marketing options, from product listings to onsite display advertising. These options allow advertisers to customize their approach, deliver tailored messages to their target audience, and meet consumers where they are. Reach new customers Retail media networks empower advertisers to connect with new and existing customers using retailers’ extensive digital presence. These networks extend beyond a retailer's own website and allow brands to tap into a broader audience base; major RMNs often have a significant offsite presence and provide advertisers with opportunities to reach consumers across various digital touchpoints and platforms beyond the retailer's controlled environment. This reach enhances brand visibility, engages diverse audiences, and contributes to the growth of customer acquisition. Closer proximity to purchase decisions Another benefit of retail media is its ability to position brands closer to the point of purchase in the customer journey. Targeted, data-driven advertising strategically placed across various touchpoints enables retailers to influence consumers when they are already lower in the purchase funnel. This proximity increases the likelihood of faster purchase decisions, especially when complemented by strategies such as timely offers and retargeting, expediting the decision-making and conversion processes. Consumers prefer personalized advertising Research has shown that approximately 50% of consumers will spend more money with companies that personalize their e-commerce retail experience. Ads relevant to a consumer’s interests and aligned with their behaviors make shoppers more likely to engage with a brand and find it easier and more convenient. As retailers honor consumer preferences for personalized advertising, they’ll find it easier to align with consumer preferences and provide an improved shopping experience. Retail media network use case: Experian's impactful marketing attribution with a discount store giant Experian’s past collaboration with a discount store giant involved implementing a comprehensive marketing attribution strategy. The primary goal was to effectively demonstrate brand campaign performance and optimize ad spend within the retail media network. We built a full-stack attribution solution that connected their offline and online data, and our approach was as follows: We started by collecting exposure data from all touchpoints, such as the website, app, and offsite display and social, to turn anonymous exposures into identified individuals and households. Additionally, we gathered debit and credit card transaction data from in-store and online points of sale to better understand purchase behavior. We also unveiled new demographic insights for the retailer. To streamline the decision-making process, we provided an easy-to-read reporting tool that showcased vital performance metrics. Takeaways from the collaboration emphasized the importance of: Understanding the audience seeing the ads and those making purchases. Analyzing incremental lift and identifying insights or trends. Sharing these valuable insights across the organization and with advertisers to inform future campaigns and brand positioning. Utilizing recent trends in the retail media landscape This case study serves as a prime example of how recent retail media trends are shaping a data-centric, integrated, and insights-driven future for advertising in retail. Our marketing attribution strategy aligns with the industry's shift toward data-driven decision-making in RMNs. Today, retailers are adopting full-stack attribution solutions like ours, enabling them to connect offline and online data to understand customer interactions better. This reflects the trend of looking for a holistic view of customer journeys and highlights the importance of integrating diverse data sources to understand consumers comprehensively. Moreover, our strategy to transform anonymous exposures into identified individuals, integrate transaction data, unveil new demographic insights, and provide an easy-to-read reporting tool mirrors the trends of enhanced personalization, merging online and offline data, and simplifying analytics within RMNs. Using new retail media Our introduction of a user-friendly reporting tool highlights the potential of new retail media to change how advertisers analyze data and gain actionable insights. It emphasizes the value of advanced tools in optimizing ad campaigns, measuring performance metrics, and informing future strategies. New technology will continue to drive effective marketing attribution and shape the future of retail advertising. Kroger Precision Marketing’s newly announced platform Kroger Precision Marketing (KPM) represents another excellent retail media use case. The retail media arm of the popular supermarket chain is looking to the future with the launch of its advertising platform. KPM is committed to innovation, and this move underscores its desire to be at the forefront of the retail media landscape. Let's take a closer look at some of the essential features of this new platform. In-house KPM recently announced the launch of an in-house advertising platform — a significant shift from their previous practices, where they relied on external tools and systems for their retail media services. By bringing the ad technology in-house, KPM has greater control, flexibility, and the ability to align its platform precisely with its retail media goals. This decision enhances Kroger’s self-sufficiency and enables quicker adaptation to evolving market demands. KPM’s new in-house platform was officially rolled out on October 13, 2023, and is redefining how advertisers interact with Kroger’s expansive base of consumers. Easier for media buyers KPM's in-house platform is also focused on providing better tools for media buyers. The platform is designed to offer advanced automation and optimization capabilities that will make campaigns more efficient and data-driven. By using this platform, media buyers can easily reach the right audience, customize their messages, and fine-tune their campaigns — all in one place. Integrated platform KPM’s new platform will integrate with existing ad campaigns and eventually encompass all their retail media options. This interoperability makes migrating ongoing campaigns easy and minimizes disruptions to advertising efforts. In the long run, the platform will serve as the foundation for all KPM's retail media services. Advertisers will have a one-stop solution for on-site and off-site media channels to ensure consistency and efficiency in retail media strategies. KPM's emerging retail media solutions demonstrate a commitment to advertisers and their changing needs in a shifting digital era. Home Depot retail media Home Depot, a well-known player in the home improvement retail industry, has made great strides in retail media. With an impressive annual customer transaction count of 1.7 billion and 3.6 billion visits to homedepot.com, their Retail Media+ platform provides advertisers with unparalleled visibility, reaching 198 million individual customers across 2,322 stores, according to their site. The benefits of Retail Media+ also include 24/7 self-service access to advertising portals, real-time reporting for campaign optimization, and dedicated support. What Home Depot’s Retail Media+ does right Home Depot’s Retail Media+ has set itself apart through strategic initiatives that prioritize enhancements to the shopper experience. Here's a closer look at what makes Home Depot's approach to RMN noteworthy: Seamless integration: Retail Media+ seamlessly integrates into the customer's journey without disrupting their experience. The platform allows the delivery of targeted ads across various Home Depot-owned spaces, including the website, app, in-store, email, and offsite channels like social and video. Supplier-centric ad inventory: Home Depot allocates the majority of its RMN ad inventory to suppliers. This ensures the ads presented to customers align closely with the products available at Home Depot for a natural connection between onsite and in-store experiences. Customer-centric approach: Melanie Babcock, Vice President of Retail Media+ and Monetization at The Home Depot, emphasizes maintaining a customer-centric perspective. The goal is not merely to monetize the website but to enhance the customer journey by incorporating suppliers into the process. This approach contributes to a more personalized and relevant shopping experience. Exploration of offsite opportunities: Home Depot is actively exploring opportunities to expand its RM+ platform beyond onsite channels. Initiatives include piloting in-store video screens and venturing into connected TV (CTV). By considering the entire customer journey, Home Depot aims to provide value to suppliers while gaining deeper insights into customer behavior. Strategic use of data science: With the help of data scientists, Home Depot ensures personalized precision in its advertising efforts. This aligns with the shopper's preferences and needs and makes the ads more relevant and engaging. Ongoing adaptation and expansion: Home Depot's proactive stance is evident in its continuous efforts to adapt and expand its RMN initiatives. The exploration of offsite channels, partnerships with platforms like Roku and Disney Advertising, and the piloting of in-store video screens showcase a commitment to staying at the forefront of evolving digital retail trends. Home Depot's success with their RMN stems from its commitment to creating a symbiotic relationship between customers, suppliers, and the retail brand. Home Depot has set a benchmark for RMNs by aligning advertising efforts with the customer's journey and embracing technological advancements. Amazon retail media Amazon Advertising, the retail media division of Amazon, has become another dominant force in the industry. Let’s take a quick look at what they’ve done well and what they could improve. Scale of Amazon’s retail media In 2022, eMarketer estimated that Amazon commanded a 76.9% share of retail digital media spend, blowing its competitors out of the water. Walmart, the second-largest player, trailed far behind with a 6.1% share. This underscores Amazon's unparalleled influence and market presence in the digital advertising landscape and solidifies its position as the go-to platform for advertisers looking to reach a massive audience. What works for Amazon Amazon has an unmatched advantage when it comes to personalizing ads and delivering relevant content to consumers. With over 200 million Prime members in the U.S. alone, Amazon has access to vast amounts of valuable data that spans shopping habits, preferences, and more. This data is invaluable for advertisers looking to target their audiences with precision, and it gives Amazon a significant edge in the market. What needs to change Although Amazon continues to thrive, there’s always room for improvement. For instance, to attract brand dollars, traditional retailers are starting to concentrate on channels where Amazon has less historical dominance, such as in-store experiences and email marketing. Understanding this potential, Amazon has been experimenting with email tools to enhance merchant-audience connections and widen its reach. As ad sales' profitability becomes more significant, incorporating these offerings into Amazon's retail media strategy could further strengthen its market position. Walmart retail media Walmart has been working hard to become a more dominant retail media force. Walmart Connect, the retailer’s retail media network, has done an excellent job bridging the gap between online and in-store activities. It provides a unique closed-loop system that connects online and in-store activity on an unprecedented scale. This mechanism offers advertisers a comprehensive view of Walmart customers’ behavior, giving them valuable insights and measurable business results. With this closed-loop approach, advertisers can access a holistic view of customer activity and achieve successful marketing campaigns. How Walmart ties together online and in-store activities Walmart’s massive brick-and-mortar presence and its comprehensive online platform provide a complete view of customer behavior and preferences. This synergy between the digital and physical is a compelling selling point for advertisers that gives them a holistic view of consumer interactions. Walmart's connected shopping experience integrates both online and in-store activities, allowing advertisers to engage with customers from the research stage to the online or in-store purchase stage of the buying journey. New features and technology Walmart’s retail media platform is trying As part of their innovative initiatives, Walmart Connect introduced the "Holiday Hub," recognizing Walmart as America's go-to holiday shopping destination. Advertisers can use this hub to gain key customer insights and implement product best practices to ensure a meaningful omnichannel connection during the holiday season. In terms of new features and technology, Walmart Connect provides various advertising options to help brands stand out from the crowd: The Search feature ensures visibility when customers actively search for products, with ads appearing prominently in search results and on browse pages. Display ads, strategically placed on Walmart.com, the Walmart app, and across the web, aim to make a premium impression on customers based on their omnichannel Walmart history. For in-store influence, Walmart Connect offers opportunities to inspire shoppers through digital TV and point-of-purchase screens across 4,700+ Walmart stores. Walmart's closed-loop measurement uniquely enables advertisers to correlate online ads with purchases, providing unparalleled scale and accuracy in measuring campaign impact. Whether for a small business or a global brand, Walmart Connect offers solutions to help marketers discover new and effective ways to connect with their target audience. The future of RMNs The future of retail media networks (RMNs) is bright and holds exciting possibilities. These five key dynamics will likely drive retail media evolution: Smaller retailers getting into the RMN game With each passing day, more small brands are becoming active with RMNs. This trend is highly beneficial, bringing diversity, competition, expanded reach, and collaborative potential to the landscape. The future of RMNs is expected to be shaped by a mix of established and emerging brands. This will create an inclusive environment for advertisers and consumers alike. Potential for cross-platform campaigns Cross-platform campaigns in RMNs allow advertisers to create a cohesive, impactful, and data-driven advertising approach across different retail media networks. This shift in campaign strategy aligns with the dynamic nature of consumer interactions in the digital landscape, as it provides a comprehensive solution for brands that seek to enhance their presence and influence across diverse channels. Targeted vs. personalized ads Personalized ads are becoming a notable trend in RMNs and replacing targeted ads. This means RMNs now provide consumers with more relevant and tailored content based on their interests and preferences. The shift is driven by the increasing demand for personalization and the need to improve the consumer shopping experience. RMN advertisers must take advantage of these personalized ad opportunities to create stronger brand awareness. Conversions vs. brand awareness Advertisers often struggle when deciding whether to focus more on conversions or brand awareness. For a well-rounded strategy, RMN advertisers should craft campaigns that balance these two goals. Using the data and insights from RMNs, advertisers can personalize their messaging to drive sales and build and reinforce brand recognition. This approach can help RMN advertisers make brand awareness a central component of their advertising efforts. Third-party data integration to enhance data and audiences As RMNs evolve, data expansion is essential for targeted, personalized, and contextually relevant advertising experiences and will help drive the future success of retail media. Advertisers using third-party data, in particular, can unlock new dimensions in audience targeting to create more tailored and impactful campaigns. Third-party data allows for a broader understanding of customer behaviors and preferences and facilitates relevant content delivery. Data insights for more connected, tailored advertising Moving forward, it will also be important for advertisers to achieve a consistent view across online, app, and in-store activities. They need to understand where customers prefer to be reached and where they are most likely to engage so they can ensure a strategic alignment of messaging and optimize the effectiveness of their retail media strategies. The future of RMNs lies in using comprehensive data insights for more connected and personalized advertising. What about AI? Where is it useful? In the retail media context, AI (Artificial Intelligence) enhances advertisers’ capabilities by providing valuable insights and automation to drive more effective and personalized ad campaigns. AI helps analyze vast amounts of data, predict consumer behavior, and empower advertisers with the tools to optimize their strategies. Ultimately, it helps them deliver more tailored, relevant content to consumers that best aligns with their interests and preferences. Humans still needed to drive change While AI is a critical technology in retail media, it doesn’t replace the need for human expertise. People are still essential for driving change, making strategic decisions, and ensuring AI-driven solutions align with business objectives. Moving forward, advertisers will need to utilize both AI-driven capabilities and human expertise to see the greatest success. A connected customer identity is the key to success The future of advertising lies in the seamless integration of customer identity across various touchpoints. Experian's cutting-edge solutions are leading the way in this transformation. We can help businesses navigate this dynamic environment with helpful tools that unlock a comprehensive view of audiences and facilitate effective campaigns across multiple channels. Partner with Experian to achieve retail media success Experian’s comprehensive data and identity solutions can help RMNs maximize their opportunity, with our new solution tailored to enhance RMNs’ strength in first-party shopper data. Experian’s solution helps RMNs unlock expanded customer insights, enriched audiences for activation, identity resolution for cross-channel audience targeting, and real-time measurement and attribution. This comprehensive solution is designed to help RMNs capture more advertising revenue. Our goal is to ensure you capture the most advertising dollars and make your RMN operate at its peak performance. Read more here Our Consumer Sync solutions can connect customers across multiple touchpoints and channels, specifically bridging the gap between online and in-store to ensure a holistic view and strategy for audiences, campaigns, and performance. With access to over 2,500 frequently updated data points, we have the depth and breadth of data needed to supplement your audience strategy. We’ll help you unlock a broad view of your audiences to see well-rounded profiles, gain the reach required to access your audience across multiple channels, and turn opportunities into revenue. Additionally, our Consumer View solutions can help deepen your understanding of your customers, their behaviors, and campaign success. Connect with a member of our team today to get started. Get in touch with us Latest posts
Every year, the Experian team attends the Consumer Electronics Show (CES) in Las Vegas, to immerse ourselves in the world's most significant consumer tech showcase and stay at the forefront of the latest technological advancements and innovations that shape the AdTech industry. This year's event was a vibrant melting pot of innovation and vision, from streamers taking a bigger bite of the advertising pie to the emergence of AI-powered solutions and drone delivery services. Amidst these advancements, the dynamic interplay of technology, media, and advertising raised important questions, especially in the context of evolving regulations and cookie deprecation. During CES, we captured insights from various thought leaders, and in the coming months, we'll be sharing these valuable perspectives with you. Watch the video below for full insights coming from our content studio onsite during the event. Or, keep reading for a recap on four key trends from CES and what they mean for your business in 2024! “My first CES was a major success. You could feel the buzz in the air as new ideas and partnerships were being created within and across industries. The intersection of the different players within retail media, connected TV, retail technology, the demand and supply-side, and agencies all in an ever-changing world of regulation and privacy begs for a solution that can maximize a successful outcome for all.”anne passon, sr director, sales, retail & cpg 1. Audience targeting: How first- and third-party data work together A central theme at CES was the importance of audience targeting, highlighting the crucial role of first-party data. However, it’s clear that to maximize its potential, this data needs to be augmented with sophisticated identity solutions and enriched with third-party insights, all while navigating the complexities of privacy regulations. This integrated approach is vital to understanding audiences and for creating more effective marketing strategies that comply with privacy regulations. 2. Standardizing metrics in retail media networks The challenges around retail media networks, particularly in terms of standardizing metrics like incremental return on ad spend (iROAS), were a hot topic at CES. This complexity around this topic underscores the need for neutral, expert third parties to help bring clarity and consensus, aiding businesses in navigating this multifaceted domain. 3. The challenge of switching data solutions Discussions covered the broader challenges associated with transitioning to new data solutions. For businesses, this involves a critical assessment of the benefits versus the costs and complexities of adopting new platforms or systems. This decision-making process is increasingly significant as data strategies become integral to marketing success. 4. Identity solutions in a cookieless future With the industry moving toward a cookieless future, the spotlight at CES was on the importance of robust identity solutions. Understanding the functionality and necessity of various universal IDs is essential to minimize data loss and maintain effective targeting. Investing in flexible and adaptable identity solutions like the Experian Graph is essential to maintain effective targeting and audience engagement in this new landscape. Announcements and advertising innovations at CES 2024 CES was a stage for significant announcements and innovative marketing initiatives: Criteo and Albertsons announced their collaboration in retail media. Instacart's partnership with Google for enhanced shopping ads and AI shopping carts. NBCUniversal's advancements in streamlining programmatic advertising. Brands like Netflix, LG, Freewheel, and Amazon Ads also captured attention with their creative marketing strategies, ranging from unique collaborations to themed promotions and captivating events. These insights from CES provide a glimpse into the future of technology, media, and advertising. They highlight the need for adaptability, innovation, and informed decision-making in these dynamic industries, especially in the context of privacy regulations. Stay tuned for our series of posts where we'll dive deeper into these topics, sharing exclusive insights from industry thought leaders. Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing. Latest posts
In this article… A history of ad-supported TV The resurgence of ad-supported TV models Free ad-supported streaming vs paid ad-supported TV What FAST popularity means for marketers The future of ad-supported TV In the early days, streaming services were presented to viewers as convenient alternatives to cable that allowed you to get content whenever you wanted it — without ads. But as standalone streaming platforms have grown in number and prominence, often charging high monthly costs for subscription-based content and continually hiking their rates, many are warming back up to the idea of ads if it means lower monthly fees. Cue free ad-supported TV (FAST) streaming services: free video content with no paid subscription requirement. These services generate revenue through advertising and deliver content with periodic commercial breaks to support their free model. This option has become popular as viewers have sought out cost-effective alternatives to traditional scheduled television. Free streaming TV platforms such as the Roku Channel, Tubi, and Pluto TV are growing, with one in three U.S. viewers subscribing to free ad-supported TV streaming services. If premium streaming platforms keep raising their monthly costs, we can predict that FAST will continue to grow. In this article, we’ll talk about the current state of the ad-supported TV climate, including the opportunities and challenges it poses for marketers. A history of ad-supported TV Historical context is crucial to understanding the current climate of ad-supported TV and its implications for your marketing. Before the rise of cable TV, television was free for viewers, with advertisers covering the costs. The first TV commercial, a 10-second spot for the Bulova Watch Company, aired in 1941 during a baseball game and cost the company $9. This ad kickstarted the era in which advertisements funded the TV model, which quickly surpassed radio in popularity and led to an explosion of content. From 1956 to 1988, commercials became embedded in culture, giving rise to marketing icons like Ronald McDonald and memorable campaigns like Nike's “Just Do It.” From 1989 to 2006, the world saw the rise of online entertainment and advertising with the invention of the World Wide Web — and subsequently, online video broadcasting and advertising emerged. But between 2007 and 2014, over-the-top (OTT) broadcasting and connected television (CTV) innovation disrupted traditional broadcasting, with ad-supported streaming gaining greater prominence. Platforms like Netflix and Hulu allowed viewers new freedom from the confines of scheduled programming. By 2022, CTV advertising thrived thanks to programmatic advertising, which allowed businesses to reach targeted audiences with relevant campaigns. Ad-supported streaming became widespread as platforms like Netflix and Disney+ incorporated advertising into their models. Free ad-supported TV (FAST) emerged as a form of advanced television that displaced traditional cable and satellite TV. Recent years have witnessed a notable shift back to ad-supported streaming television due to the proliferation of streaming services, subscription fatigue, and the desire for cost-effective content consumption. Looking ahead to the future, TV advertising is expected to continue growing with the potential to be influenced by innovations like virtual reality and artificial intelligence. Why did the popularity fade? Ad-supported TV waned in popularity due to the introduction of cable TV and subscription-based models. Cable TV offered ad-free content for a subscription fee, which reduced the appeal of traditional ad-supported broadcasts. Uninterrupted content became a critical selling point for cable providers, but it created fragmentation for advertisers and made it more challenging for them to reach their target audience. With cable and, later, satellite TV dominating the market, advertisers had to adapt their strategies. The decline in the popularity of ad-supported TV led to a decreased reliance on traditional advertising methods, and marketers began exploring alternative avenues to connect with consumers effectively. The recent resurgence of ad-supported TV, particularly in streaming services, indicates a shift in viewer preferences. You can utilize targeted advertising cost-effectively, as viewers prefer free, ad-supported content over subscription-based models. The resurgence of ad-supported TV models The resurgence of ad-supported TV models can be partly attributed to the COVID-19 pandemic and changing viewer preferences. In 2020, stay-at-home measures led to a surge in media consumption, and people turned to streaming for entertainment. This shift provided a unique opportunity for ad-supported models to regain popularity. But as viewers explored various streaming options, subscription fatigue set in. Paid streaming proliferation increased costs, and people began reconsidering spending on multiple subscriptions. The pandemic triggered a fundamental shift in TV consumption and caused viewers to favor ad-supported streaming models that offered free content with occasional commercial breaks. In fact, LG Ad Solutions research revealed that 80% of American TV viewers use free ad-supported streaming services — and 63% express a preference for this model. This finding challenges assumptions made during the initial stages of the pandemic, where subscription-based consumption seemed dominant. The study suggests that as subscription fees accumulated, viewers sought more content without increasing costs, driving a preference for ad-supported streaming. Furthermore, the landscape of ad-supported TV saw notable entries from major streaming platforms: HBO launched its ad-supported model in June 2021. Netflix and Disney+ introduced their ad-supported tiers in late 2022. Amazon announced in September 2023 that they would be launching their ad-supported service in 2024. These developments emphasize the industry's recognition of the demand for ad-supported content and further contribute to the prominence and endurance of this model. Most popular platforms A report from Samba TV showed that one in three U.S. viewers subscribes to free ad-supported TV streaming services, such as Pluto TV, Tubi, or the Roku Channel. The report highlights Amazon's Freevee as a standout due to its high viewership growth in the first half of 2023 compared to competitors. Here are some details to note about Freevee and its major competitors: Freevee (Amazon Prime) With a focus on bringing diverse content to its audience, including thousands of premium TV shows and movies, Freevee has positioned itself as a go-to destination for those looking for quality programming without subscription fees. In early 2022, Freevee had 65 million monthly active users, and their ad prices, similar to competitor costs, range between $13 and $24 per day — around $400 and $720 per month, respectively. Pluto TV (Paramount) As a pioneer in the FAST streaming space, Pluto TV, now under Paramount, boasts a diverse range of 250+ channels. According to Statista data from November 2022, 8% of Americans watched TV on Pluto on a daily basis, with men watching more often than women. You can strategically engage with Pluto TV's varied audience for around $999 a month, with advertising costs influenced by factors like viewership and channel prominence. Tubi (Fox) Surpassing many competitors in viewership, Tubi, owned by Fox, offers an extensive collection of free content (200,000 movies and TV episodes) and enjoys 74 million active monthly users. Tubi has experienced the fastest growth among young, diverse audiences and has produced or acquired 200 titles that almost 54 million viewers have watched. You can market to viewers on Tubi for $10 to $45 daily or $300 to $1,350 monthly. The Roku Channel With over 350 channels and premium original content, The Roku Channel has become an important player in the FAST space. Approximately 38% of streaming hours in U.S. households are spent on the Roku Channel. With Roku Ads Manager, you can get started with only $500. New players The FAST industry is seeing an influx of new players all the time, which is contributing to the industry's growth and innovation. As traditional subscription-based models adapt to include ad-supported tiers, the competition in the ad streaming sphere has intensified, prompting both established and emerging platforms to explore the FAST model. Statista reports that the number of users in the FAST market is expected to reach 1.1 billion by 2028! The recent entry of industry giants like Netflix into the ad-supported realm has set the stage for significant shifts. When Netflix announced and launched its ad-supported tier in late 2022, the industry experienced a notable spike in CPMs (cost per mille/cost per thousand impressions). This reflected the initial scarcity of users on this tier. As more subscribers embraced the ad-supported offering, CPMs decreased. Subscription video-on-demand (SVOD) platforms, including Disney+, are also incorporating ad-supported tiers into their models to cater to viewers' preferences for cost-effective streaming options. Industry reports illustrate a decrease in CPMs as more users engage with ad-supported tiers, which creates a vibrant, competitive environment for advertisers like you. Free ad-supported streaming vs paid ad-supported TV The affordability of free ad-supported streaming services is attractive for viewers seeking cost-effective alternatives to traditional cable or non-ad-supported streaming platforms. Platforms like Pluto TV and Tubi provide viewers with a wealth of content without the financial commitment of a subscription. Free ad-supported streaming services like these have gained traction for their cost-effectiveness. In contrast, paid ad-supported TV models present a unique proposition — pay for the service and enjoy reduced subscription costs by opting for an ad-supported plan. These models provide users with a middle ground between subscription-based and free ad-supported streaming. The future popularity of free ad-supported streaming versus paid ad-supported streaming is likely to be influenced by a combination of viewer preferences, content strategies, ad experiences, and broader industry dynamics. As both models evolve, streaming services will continue to experiment and adapt to meet the diverse needs of their audiences. What FAST popularity means for marketers The shift towards FAST aligns with changing viewer preferences. This makes things easier for your marketing, as you can: Engage a broader audience: Without the barriers of subscription fees, and the ability to place ads in front of diverse demographics, you can customize campaigns for specific audiences and ensure your messages resonate with viewer interests. Convey your message to a captive audience: The rise of FAST also implies an increased viewership of commercials, as these services typically feature ad-supported models with limited options for viewers to skip or fast-forward through ads, creating a more captive and engaged audience. Expand your brand exposure: The cost-effectiveness of ad-supported models provides a valuable avenue for brand exposure without the hefty price tags associated with traditional TV advertising. As a marketer, it’s essential for you to understand the dynamics of ad-supported TV platforms so you can recognize unique advertising formats, optimize campaign frequency to prevent ad fatigue, and embrace the potential for localization and personalization. As advertising evolves with the growing popularity of FAST, you have an opportunity to stay ahead of the curve, craft compelling campaigns, and maximize your reach at a time when ad-supported streaming is at the forefront of entertainment. The future of ad-supported TV The re-emergence of ad-supported TV, along with recent innovations, indicates that the future of this model is bright. Teevee Corporation, a hardware startup led by the co-founder of Pluto TV, is an excellent example. It is set to unveil a groundbreaking ad-supported physical television that won’t cost consumers a single cent — as long as they’re okay with a second integrated screen that displays ads while they watch the main screen. This TV is distinct from streaming services and uses automatic content recognition (ACR) for contextually relevant ad delivery. Teevee's approach introduces a new dimension to viewer engagement that combines traditional broadcasting with targeted advertising. Major streaming platforms are actively contributing to the evolution of ad-supported TV as well. Amazon made the strategic move to bring Amazon Original titles and additional ad-supported channels to Freevee to demonstrate its commitment to the ad-supported market. The platform introduced 23 new ad-supported TV channels from major entertainment players such as Warner Bros. Discovery and MGM. As a result, Amazon's Freevee experienced tremendous growth in viewership in the first half of 2023, up 11% year-over-year. These recent advances illustrate what the future of streaming with ad-supported TV may look like moving forward, where hardware innovation meets strategic content integration, and major platforms compete to enhance their ad-supported offerings. How Experian can help Although the FAST industry is rapidly evolving, Experian stands at the forefront with powerful data-driven solutions that empower you to take advantage of this valuable marketing opportunity. Consumer Sync is a robust identity solution that empowers advertisers by facilitating collaboration and offering insights that contribute to more effective and targeted FAST campaigns. Audience segmentation, attribution, and campaign optimization play vital roles in FAST advertising. Our Consumer View solution provides industry-leading data solutions for audience segmentation, which allows marketers to predict buying behaviors and deliver personalized experiences. Connect with Experian's TV experts As you explore the possibilities of ad-supported TV, Experian offers the expertise and solutions you need to elevate your marketing strategies. Connect with our TV experts today to gain a deeper consumer understanding, refine your targeting, and ensure the success of your campaigns. Connect with our TV experts today Latest posts