Three of the top advertising executives believe there is no going back to the way business was done before the Covid-19 outbreak.
Nearly a year after the U.S. pandemic, those in charge at Procter & Gamble, NBCUniversal, and advertising tech company The Trade Desk stressed the surge in data-driven ad buying, noting that the advance television decline is permanent.
Marc Pritchard, P & G’s Chief Brand Officer, said during a CES 2021 panel today that the “inevitable future” of advertising will be fully digitized and include real-time trading.
“All advertising and media are becoming a form of digital, a form of programming – data driven and automated – that allows us all to define the audiences we want to reach and what kind of programming our brands are linking to should be able to allow this with and then, ”said Pritchard during the virtual Variety Entertainment Summit at CES.
The death of the upfront
Because of the pandemic, advertisers planned to spend 33% less ahead of 2020 – a loss of $ 7 billion to television’s long-running shopping market.
With the emphasis on flexibility and the advent of digital channels for networked TV services, marketers are now looking to fundamentally change the way TV advertising is bought and sold. For P&G, this meant working directly with networks and broadcasters on their own schedule.
“We essentially worked together and negotiated a deal about our timing and the timing that would work best for our company,” said Pritchard. “I would expect that from anyone.”
NBCU wants to be one of those networks to work with brands and agencies the way they want. The company unveiled its One Platform offering at CES 2020 to do just that: unify ad inventory across all screens.
Linda Yaccarino, chairman of global advertising and partnerships at NBCU, said the goal is to trade media “in a very nimble way across any platform,” linear or digital.
There is also an increased amount of TV inventory available, with the increase in CTV usage during the pandemic and the introduction of new ad-supported streaming services, including NBCU’s Peacock.
As both marketers and consumers use digital channels, the old ways of trading media seem to be disappearing.
“It takes these barriers away,” said Yaccarino. “It takes you to Peacock who really sucks when it all goes digital.”
Be more careful
The pandemic also forced marketers on tight budgets to prove the effectiveness of their advertising campaigns. As a result, they poured robust measurement offerings onto digital channels.
“Almost every advertiser in the world is more aware of their choices,” said Jeff Green, CEO of The Trade Desk, adding that the focus on data-driven advertising has been “very good for business.”
Pritchard also said that working more closely with media owners has opened the door to cross-platform measurement for both traditional TV and digital media.
Outside of television, marketers have also explored platforms that host user-generated content, which is difficult to moderate. For example, last summer many brands stopped advertising on Facebook because of hate speech on the platform. For P&G, the disruption in 2020 led the brand to focus on transparency and security, ensuring that “every single aspect of our media ecosystem is assessed and ensured that our ads are served in a safe place,” said Pritchard.