From 14 June onwards, viewers the world over will once again be glued to their television screens – not just watching exciting football matches but also ads from retailers and brands. The budgets for those thirty-second slots during half-time are not for the faint-hearted. Yet despite the importance of television, particularly during major events such as the World Cup, a report by the consultancy company Magna revealed that 2017 was the first year in which global spending on online advertising outstripped global spending on TV ads[1].
In the German advertising market, however, more money is currently being invested in television. In 2017, gross spending on television advertising amounted to 15.3 billion, which corresponds to around 48 percent of the entire advertising budget. However, the pace of growth here is slowing tangibly. While expenditure on television advertising increased by almost 7 percent from 2015 to 2016, advertising growth rose by just under 1.5 percent in 2017[2].
Whereas television advertising primarily focuses on awareness and brand recognition, online advertising tends to centre on performance and results. Regardless of which channel or campaign a business uses, the goal at the end of the day is to achieve maximum ROAS with the existing budget and increase the company’s revenue. However, retailers and brands can only do this if they consolidate information from all marketing channels and use this to create an overall picture of the customer journey across all touchpoints.
Today’s consumers move seamlessly between devices and channels. Within a few short moments, consumers can trawl through a search engine on their smartphones to find that little black dress, visit an online shop to find out more about a product that they have just seen, switch to a comparison website and post a photo of it on Facebook – and all because they have just seen an ad on television.
If a retailer were able to connect all of these touchpoints, it would give them a perfect 360-degree view and enable them to offer the consumer a seamless shopping experience. In most companies, however, these touchpoints are allocated to separate departments and budgets, each with different goals and different decision-makers. In some cases, they are even implemented by different advertising agencies and technology service providers.
It is time for retailers to adapt to their customers.
To help you combine different channels and create a personalised ad experience, Criteo has developed a unique solution that extends Criteo technology to television. This solution combines television advertising with Criteo Dynamic Retargeting, enabling you to measure the impact of your ads. Fashion retailer Navabi, for example, was able to increase its conversion rate by 330% thanks to this innovative combination of branding and performance campaigns.
Working with Criteo, Navabi analysed the relationship between retargeting and television. It turned out that the Criteo Dynamic Retargeting solution plays an important role in the customer journey by helping convert website traffic into sales. Using Criteo Dynamic Retargeting to directly target television viewers after a TV ad strengthened the advertising impact of the cost-intensive TV ad.
Customer Lifetime Value (CLV) is a crucial metric here. In addition to channel-based KPIs, it can help you really understand and successfully target today’s omnishoppers. CLV doesn’t just estimate the impact of an individual marketing campaign. It also predicts the total value a consumer brings to a retailer throughout his or her entire relationship with the business. As such, CLV could be the perfect KPI for combining campaigns, channels and teams under a shared goal.
You can find out more about combining Criteo Dynamic Retargeting and TV advertising at our webinar on 21 June 2018. Register here.
[1] Available at: https://www.wuv.de/medien/werbemarkt_2017_online_ueberholt_erstmals_tv
[2]Available at: https://www.wuv.de/medien/mobile_waechst_langsamer
