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How Geotargeted TV Advertising Can Energize Local TV Business

January 31st, 2019   ||    by John R. Osborn

Geotargeted TV advertising holds great promise for local TV stations and their local advertising buyers. But before we dive into that potential, here are a few definitions related to “location-based” marketing, courtesy of GeoMarketing from Yext:

  • Geomarketing uses location intelligence to increase the chance that a message will reach the intended consumer at the appropriate time (and place).
  • Geotargeting is the practice of delivering content to users based on their geographic location. Advertisers who buy local TV to reach target audiences in a specific DMA (Designated Market Area) use this targeting.
  • Micro or “extreme” geotargeting involves targeting on a more granular level through GPS signals, geofencing, and more.
  • Geofencing, GeoMarketing from Yext defines, is the practice of using global positioning (GPS) or radio frequency identification (RFID) to set a geographic boundary such as a zip code, a store/office building, an event venue, or even a home.

What Geotargeted TV Advertising Means for Buyers

Geotargeting presents exciting opportunities for buyers. For example, a local car dealer can send messages to device users who’ve shopped for cars in the last 30 days, and even geofence competitor location visitors. With 75 percent of US homes predicted to own smart TVs by 2020, according to Forbes, most of the country can now be reached with messages on internet-connectible TVs. Through ACR and ATSC 3.0 technologies, TV viewing behavior, geotargeting, and cross-platform demographic matching could, for instance, deliver a pet care ad to dog-owning homes that regularly watch the late news on the NBC affiliate in Des Moines.

GeoMarketing from Yext quotes Eric Hadley, CMO at GroundTruth, on the value of geotargeting: “If you’ve been to a gym, a sporting goods store, and a recreational park within days of each other, it’s a better indicator that you’re a fitness enthusiast than any content you may consume but never action upon.”

What Geotargeting Means for Sellers

This new generation of targetability opens local station inventory to a global marketplace when connected through a SSP (supply-side platform) to buyer DSPs (demand-side platforms). With such micro-targeting, buyers will need to purchase from a greater breadth of inventory sources to reach their entire audience. This brings new demand to local stations who would previously attract national advertisers only if the local DMA was critical to their sales. The reduced friction of automated buying is also key to bringing new demand.

Targeting Within a TV Market

People will consume local TV content on smart phones, tablets, PCs, smart TVs, legacy TVs, and through live and on-demand streaming. Some programming will be delivered via broadcast through digital antennae, and some through broadcast signals picked up on mobile devices.

Why Local TV Is Not Threatened by Increased Targetability

Local stations continue to fulfill the promise of trust for viewers, through news, sports, community programming, and as network programming “curator.” That trust will continue to make local TV providers important for advertisers concerned about brand safety as well as viewers concerned about their data.

Rapid, technology-driven change can be unnerving. Solid change management tools combined with strong technology partners will help guide the local TV industry to the right tech and talent investments for their operations.

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