Hello, I’m Tomita from IREP. In this series of (probably six) posts of programmatic digital-mass ads, I would like to introduce IREP’s “programmatic TV commercials” and its evolved “programmatic digital-mass advertising”. I hope that this series would be some help to your marketing activities.
Please allow me to introduce myself. I started my career as a corporate salesperson for an IT vendor, and then stepped into the advertising industry when I joined DAC (Digital Advertising Consortium, Inc.) in 2007. I had been engaged in sales of ad servers and other ad-tech solutions for media companies, launched an access analysis business (called SiteCatalyst at that time, now Adobe Analytics) at a company to which I was transferred.
From 2011, I have consistently worked on projects around DSP. Then I moved to a consulting firm in 2017 and gradually learned about TV commercials because I was assigned to TV x Digital solution products.
I joined IREP in November 2020 and has been working as the division manager of the Programmatic TV Commercial Promotion Division since April 2021, in charge of the TV commercial domain.
Through this series of posts, I would like to share with you why IREP handles TV commercials, how we implement the PDCA cycle, and how this affects the marketing activities of advertisers.
Reasons why IREP handles TV commercials
Since this is the first post, I would like to explain how IREP came to handle TV commercials.
As you may know as readers of this website, IREP started as a web advertising agency that specialized in search, and in recent years has expanded to include all types of web ads, including social media.
IREP initially focused on the lower funnel segment of marketing, now actively expanding into the middle funnel including YouTube.
In October 2018, we became a wholly owned subsidiary of Hakuhodo DY Holdings and restarted as a “Next generation of digital agency” in Hakuhodo DY Group. This strengthened our partnership with Hakuhodo DY Media Partners, allowing us to buy mass advertising such as TV commercials.
Before we started handling TV commercials, we had intense discussions about how we can show our strengths in TV commercials. We came to a conclusion that the PDCA cycle for TV commercials should be implemented by combining the Hakuhodo DY Group’s expertise and structure in mass advertising with the data analysis capabilities and speedy business processes IREP has developed in web advertising.
We propose TV commercial measures based on data regarding “planning” and “effectiveness measurement”. In particular, our “effectiveness measurement” is based on capturing TV commercial indicators based on “action and results” such as clicks and conversions in web ads.
By visualizing the “action and results” data, we can reflect them to TV media planning and maximize the effectiveness of the next TV commercial. We also have experiences of optimizing advertising budget combined with the web ads after maximizing the effectiveness of TV commercials.
With our original specialty in optimizing web ads and building up the experiences in TV commercial optimization, more customers are coming to us asking for optimization from the lower funnel segment through the middle funnel segment. As a result, we are also working to systematize “programmatic digital-mass advertising,” an evolved concept of “programmatic TV commercials”.
Establishment of a TV commercials department
In April 2021, the “Programmatic TV Commercial Promotion Division”, the first division in IREP to be named with “TV”, was established and has grown to nine members as I’m writing this post in September 2022. The division consists of two groups. One is Business Promotion Group which is responsible for handling projects. With core members experienced in TV commercials at a general agency, our excellency in handling projects have been greatly accepted by many advertisers.
Another is Business Development Group, which is responsible for promoting “x2 (Double Score)” measurement tool, developing metrics and report formats, and formulate integrated planning for connected TV ads, which will be discussed later.
Thanks to the high acceptance by many advertisers, the volume of TV commercials handled has grown by more than 300% year-on-year for the consecutive last two years. In the future, we are aiming to offer advertisers not only individual optimization of TV commercials but also “programmatic digital-mass advertising”, an overall optimization including Internet ads. And as a result, grow the scale of TV commercial business.
How to proceed with programmatic digital-mass advertising
So far, I have introduced about how IREP view TV commercials. Here, I would like to briefly introduce three approaches in the “programmatic digital-mass advertising”. More details will be explained in a future series.
– Case 1: TV commercials and OTT ads
The first idea is a case where a TV is considered as a single device and integratedly manage both TV commercials and connected TV ads. The details will be explained in the future post, but by calculating impressions of TV commercials, we can run the PDCA cycle using the same metrics as for connected TV ads. In addition, “Site Session Lift” is used as an action/results-based metric to analyze TV commercials and connected TV ads using indicators like CPC/CTR.
– Case 2: TV commercials and web video ads
Going a little further, it would be desirable to optimize TV commercials (+ connected TV ads) and Internet video ads using the same metrics. Since Case 1 above uses familiar indicators for web ads such as impressions and CPC/CTR, we can use the same indicators to visualize results across multiple devices.
– Case 3: TV commercials and lower web ads segment
As a final case, we maximize the results and optimize budgets expanding to the lower funnel segment of web advertising such as listing ads. The goal here is to conduct individual optimization for both TV commercials and web ads and collect and analyze data utilizing MMM (Marketing Mix Modeling) to calculate the optimal budget solution for the advertisers.
In this series, I will not only explain the above three approaches, but also the concept and examples of effectiveness measurement leading up to them.
We are happy to make proposals and provide services tailored to the specific needs of our advertisers. We look forward to hearing from you.
Finally, I would like to show what will be posted in this series.
- Vol.1: “Programmatic Digital-mass Advertising” proposed by IREP
- Vol.2: IREP’s Way of Effectiveness Measurement of TV Commercials
- Vol.3: Effectiveness Measurement of TV Commercials with IREP’s Uniquely Developed Tool “x2 supported by TV AaaS”
- Vol.4: Integrated Indicator of TV Commercials and Web Ads
- Vol.5: The Science of Media Planning for TV Commercials
- Vol.6: TBD
*Note that these are plans and are subject to change.
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