Tuesday, October 23, 2012

Battleships versus Righting The Ship

According to TiVo Research and Analytics, the "battleship moment" in last night's debate was the most viewed moment of the debate.

The reason TiVo knows this is because they do second-by-second analysis of what viewers pay attention to.

If they can do it during a debate, they can do it during a commercial.

Would advertisers be able to use that data?  Would it be helpful to know how many viewers watched second 29 compared to how many watched second 9 of their commercial?

Logic seems to say yes.  More of the spot being watched by more people is better than less of the spot being watched.

But here's the question.  Does it improve ROI?

It depends, doesn't it?  On which ROI the advertiser is referring to.

If the return on investment that an advertiser is concerned about is a return on production dollars spent -  rather than a return on the total marketing budget - then yes, time spent makes a difference on ROI.

Current cost of production averages out at around $16,000 per second.  Those seconds are created to be watched.  If the message could be communicated in fifteen seconds, why would the advertiser create a thirty-second spot?  A thirty-second spot means all thirty seconds are important.

That's each second out of thirty costs the same to create.

Which makes second 29 as important financially as second 9 to the advertiser.

Now, what if the advertiser paid for part of the cost of production based on seconds watched?  The more of the spot that is consumed by viewers, the more money the agency makes for producing the spot.

Which makes second 29 even more valuable to the agency than second 9, doesn't it?

In my opinion, that would make for better advertising over all.  Because now there is a financial consideration for making better, more watchable advertising.

Right now, agencies are paid whether people watch the commercials they create or not.  Second-by-second data makes agencies accountable for creating involving work.

Second-by-second data is available from TiVo and others.

Advertisers are begging for accountability.

Now they can have it.

Debate over.


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