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Top 7 Ad Selling Points for Premium TV

December 14th, 2017   ||    by Charlene Weisler   ||    No Comments

What do we really mean by premium TV? For some, it’s a tiered linear TV service that requires a subscription, such as HBO and Showtime. For others, the definition has expanded to include packages of channels offered by multi-channel video programming distributors (MVPDs) and over-the-top (OTT) companies like Apple.

So, it seems that for those in the business of selling television, “premium” is in the eye of the beholder.

What Sellers Need to Know

Adam Gerber, senior vice president of investment for North America at media-buying agency Essence, reflected on the current status of premium TV in a recent Adweek article. According to Gerber, “premium” is an overused term, and he concluded that “premium content is what works best for the marketer.”

At its essence, this makes sense. While the definition of premium TV is malleable, its selling points—selling points shared by much of broadcast TV—are rock-solid. Here are the top seven ad selling points for premium TV.

1. Reach

Premium TV has high penetration. It offers the most popular programs, with the potential to reach every television household in the U.S. According to David Poltrack, chief research officer at CBS Corporation and president of CBS VISION, “Reach is the most important component of TV advertising.”

Cut back on the reach of television at your peril, Poltrack cautioned, as less television results in lower reach and fewer sales.

2. Targetability

It also enables marketers to target specific audiences, from broader Nielsen market breaks to hyper-targeted addressable segmentations.

3. Quality

Premium content is king. Curated content that includes live sports and news, as well as watercooler entertainment programs like Game of Thrones, give a marketer marquee fandom placement opportunities.

In a presentation on the future of media, business consultant Michael Wolf noted that broadcast is more attractive than Virtual Pay TV for cord-cutters who still want traditional live/linear programming, reported Business Insider.

4. Measurability

Television is measured with an industry currency, meaning all program performance is comparable and trendable.

5. Viewability . . . By Humans

Unlike digital, television content and ads are fully viewable on the screen. There’s no “below the fold” in TV.

“We want to ensure our partners are protected, and that we’re serving humans, not bots,” said Pooja Midha, senior vice president of digital ad sales and operations at ABC. “Not all impressions are created equal.”

6. Safe Advertising Environment

Careful curation ensures advertising is not placed in objectionable or hateful programming content. Television is less of the Wild West when it comes to ad placements offering brand confidence to advertisers.

7. New Technology

ATSC 3.0 has the potential to offer richer content on the local television level, with the ability to gather more granular data and adopt new business models, according to Tracy Swedlow, founder of TV of Tomorrow.

And Wolf believes television delivery will be a good use case for 5G, especially with fixed wireless-to-the-home.

Premium TV—no matter how one defines it—offers compelling advantages for brands in the media ecosystem. “Premium video creation is a vibrant place, and continues to thrive,” said Midha. Not too different from local at the end of the day.

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