ZTV Advertising: Bridging the Gap Between Linear TV and CTV with Zip Code Optimized Targeting

Ann Kraus: Hello and welcome to the Simpli.fi webinar series. I'm Ann Kraus. Thanks for joining us each month for industry news, interviews, product roll-outs and trainings on all things related to targeted advertising and connected TV. The Simpli.fi webinar series is available on demand with new episodes posted each month at simply.fi/webinars, along with all of our previously recorded episodes. It's August 2023, and this month we have an exciting announcement to share. For those who haven't been able to include CTV in their media buys due to cost or have avoided it because of the differences in buying strategy and reporting language compared to linear TV, we have a solution, ZTV. ZTV is zip code optimized CTV and it bridges the gap between linear TV and CTV while using the same targeting language familiar to traditional TV buyers. CTV buys are fundamentally different from linear TV media buys, and this can be confusing, but with ZTV we offer a new method of CTV targeting, combining the precision of digital by targeting zip codes with the broadcast power of CTV. You can now buy CTV associated with specific zip codes that show a higher value for the demographic you want to reach. If your agency already places media buys on cable and broadcast nationally or locally, you can easily add CTV to your buys using the same terminology. You might be wondering how ZTV differs from other CTV targeting options such as addressable geofencing and keyword targeting, which are already available at Simpli.fi. The key difference lies in the data. ZTV identifies the zip codes that work best for your client's campaigns by leveraging census demographics and ACR or automatic content recognition TV viewing data. So the zip codes are chosen for you based on the demo of those that live in the zip codes that have a higher propensity to be watching CTV. That's it. Simpli.fi has always valued unstructured data, and ZTV is another example of how we leverage the data to maximize the relevance of your media buys. We looked at census data and CTV viewership to rank over 33,000 zip codes providing targeting at the zip code level with the types of demographics that linear buyers are used to. Simpli.fi has always valued unstructured data, and ZTV is another example how we leverage this data to maximize the relevance of your media buys. ZTV offers a way to add incremental dollars to your existing strong broadcast buy and eliminates the barriers for those who couldn't enter the CTV game due to a higher CPM. For example, if you have a national broadcast media by targeting women age 25 to 49, you can continue to place it as before. With ZTV, you can now add connected TV to your campaign based on zip codes that have a high index for that same demographic. ZTV combines the hyper-focused abilities of programmatic advertising with the broad reach of linear broadcast providing an effective and efficient solution for your CTV advertising needs. Let's break down the different advertising methods we currently have, linear broadcast, CTV and cable. Linear broadcast casts a fairly wide net and it's not bought on a CPM basis. Rather, it works in DMAs or designated market areas with reported viewers in specific age groups, but a DMA can contain hundreds of zip codes. For example, the Dallas Fort Worth DMA has over 270 zip codes, and while it can reach all those zip codes, there might be some waste in reaching the targeted demographic due to the broader coverage resulting in a higher CPM. Standard programmatic CTV can be bought using various targeting options like zip codes and cities and addresses. It allows for site retargeting and other tactics to enhance the targeting, and it also offers the option to buy PMPs or private marketplace deals and add additional targeting to the buy. However, all of this targeting data can drive up the CPM for your buy making it more expensive to reach the desired audience. Cable is sold by zones with each zone reflecting a higher propensity for a particular demographic. However, it's still net that may include zip codes that are not as strong in the desired demographic, and this could potentially lead to some inefficiencies. Imagine a specific area that attracts a younger audience and those who are avid fans of live sports. Running a cable advertisement here would be perfect for targeting sports enthusiasts. However, there is a downside. Some zip codes in this area may not be as strong in the desired demographic, resulting in wasted ad impressions. And we also must consider cord cutters, those who used to have cable, but since they've canceled their subscription. These individuals no longer fall within the reach of cable advertising and their preferences need to be addressed differently. According to Google, there were 87 million cord cutters as of 2022, and it's projected to increase to 95 million this year. To address these challenges and ensure more effective targeting, ZTV combines census data with automatic content recognition data or ACR data from Smart TVs. ACR is a technology integrated into Smart TVs that automatically identifies the content being watched without requiring any user input. By merging this ACR data with the demographic information from the census, we gain a more detailed understanding of audiences at a granular level. Combining our information with census data, which comprises of various data points like age, gender, household income, and more that we're actively mapping, allows us to swiftly pinpoint zip codes at over index for those desired audiences. For instance, let's consider an advertiser who wants to reach women ages 25 to 49 in the Dallas Fort Worth DMA. With traditional linear broadcast buys the ad would be distributed across all 270 zip codes in the area. However, ZTV allows us to pinpoint the specific zip codes that match the target demographic, ensuring the campaign's maximum input in the most relevant geographical areas. This results in higher ad frequency among the right people at a lower cost as opposed to a blanket approach across the entire DMA. It's important to note that ZTV is not meant to replace your existing media strategies, rather it is designed to enhance them. It serves as an upper funnel solution that increases both reach and frequency in zip codes where your audience is shown a higher propensity for CTV viewing. It is designed to enhance them. It serves as an upper funnel solution that increases both the reach and frequency in zip codes that show a higher propensity for your demographic. By leveraging this technology, you can achieve more efficient and effective media buys and potentially discover new opportunities for your advertising efforts. Adding ZTV to your media buys can effectively lower the average CPM and enhance your advertising strategy. Let's consider an advertiser who is targeting baby boomers who are empty nesters. The CTV might be running a keyword search retargeting tactic at $26 CPM and an addressable geofencing tactic also at $26 CPM. Since this is a budget-based campaign, the impressions vary. Now, there's an opportunity to further optimize this campaign by incorporating ZTV, which comes at a more cost-effective rate of $10 CPM. Adding ZTV at $10 CPM decreases the overall average CPM significantly to $18. This cost reduction is a win-win situation for you and your client. In fact, ZTV consistently offers CPMs ranging from $10 to $18, making it an efficient and budget friendly method to reach your advertiser's target demographic precisely within their specific zip codes. It's essential to note that ZTV allows you to target the same demographics as your linear buys, but with the added advantage of programmatic zip code delivery. This means you can maintain your other programmatic tactics, linear or cable buys, while still leveraging ZTV for a more granular approach. Let's take a look at a specific campaign with the objective of driving website visits using CTV alongside various tactics like site retargeting, private marketplace deals, and ZTV. Among these tactics the ZTV line of the campaign stood out with the highest reach and the lowest CPM. It proved to be the second most effective driver of website visits right after website retargeting itself. Now consider another campaign aiming to deliver and reach a specific state. CTV was utilized for site retargeting along with ZTV. Once again, the ZTV lines performed impressively well being on par with site retargeting and driving site visits. It also showed a lower CPM and higher reach making it a valuable component of the campaign. How are we managing to keep CPM so low with ZTV, and that's a great question and one of the significant advantages of ZTV is that it eliminates the need for expensive third party data. This means a larger portion of the total CPM goes directly to the publisher, resulting in a much lower CPM for delivery across the most sought after CTV programming. In fact, the pricing we're seeing with ZTV is often on par or even below the standard linear pricing, especially when compared to age and demographic zone based purchases. Now at this point you might be considering which advertisers you'd like to introduce to ZTV or which doors you plan on knocking on to leverage this new initiative. Political advertisers in particular can benefit greatly from ZTV. They are among the largest TV advertisers and often face tight inventory during the political season. ZTV allows them to reach a specific audience in targeted zip codes within a politician's district or state. This solves several problems as certain demographics are harder to reach through linear TV alone. With ZTV, TV ad buyers can plan and execute connected TV campaigns alongside linear, using a common methodology and reaching the desired audiences all at a highly competitive CPM. And for those who dislike how political ads push out other advertisers who can't compete, ZTV offers a low cost option to remain visible. It's also essential to note that ZTV is future-proof. It doesn't rely on device and household identifier matching, making it powerful and adaptable even with potential changes in targeting legislation. Now, if you're excited about the idea of ZTV and how it can drive frequency in relevant zip codes, but you also want to retain additional targeting options, that's completely fine. We can still use any targeting options you prefer within the zip codes. Just keep in mind that additional layers of targeting may increase the CPM and if you love day partying, we can still incorporate that with ZTV, but remember our guiding principle, let the data guide the campaign. If a ZTV campaign is already targeting certain zip codes because they align well with your desired audience, the time of day when they watch becomes less crucial. And if you're accustomed to buying through a private marketplace deal or PMP you may have noticed higher CPMs. Many premium publisher deal IDs for CTV can range anywhere from $15 to $18. That means for a standard addressable geofencing campaign your all in bid would have to be between 32 and $40. With ZTV you only need a 20 to $25 all in bid because the additional costs of other targeting layers are unnecessary. We've seen excellent results when adding ZTV to addressable campaigns, lowering the average CPM and providing an extra boost for ads in the zip codes that match the client's target audience. Furthermore, ZTV has been successfully used alongside PMP deals such as Hulu. In this case, the advertiser supplied specific zip codes where they operated, and once again, ZTV proved to be the second most effective driver for website visits, lower CPM and conversion rates. And here's the best part. We are seeing our ZTV campaigns run on premium networks even at the lower CPMs. Since there are no additional targeting costs, more of the CPM goes to the publisher allowing us to still serve on major exchanges and through PMPs. You can see how ZTV opens up a seamless transition from traditional linear buying methods to digital ones. It effectively eliminates the entry barriers that linear buyers have been facing. ZTV emerges as the ideal solution enhancing the buying experience for national and local TV buyers across various industries. Here are some examples of how you can implement ZTV. With its precise targeting you can now exclusively target specific zip codes in the US market that align with your target audience, such as college students or retirees. ZTV also allows you to target specific trade zones or zip codes that cater to particular businesses like retailers, QSRs, or quick service, restaurants, dealerships, and more. By leveraging ACR data, you can focus on delivering content only to zip codes where streaming viewership is high with the demographic you're trying to reach. This compliments a linear buy and ensures a balanced presence in both realms, and you can employ ZTV for a more granular cable zone execution. It could achieve a low cost-effective CPM in the same zones. This offers enhanced targeting granularity and serves as an alternative to high-priced zoned cable buys. ZTV can also help you with sports viewership. By identifying zip codes with a high concentration of sports viewership it provides an opportunity for incremental reach and offers a cost-effective alternative to reach consumers who highly value sports content. We look forward to you implementing these strategies and telling us about your success stories. ZTV is incredibly easy to order. All you need to do is provide Simpli.fi the dates, the target demographics, and your budget. With ZTV, you can tap into the power of digital advertising for TV and reach your desired audience more effectively. Thanks for joining us today. If you have any questions about Simpli.fi's offerings, please reach out to your Simpli.fi account manager or send an email to hi@simpl.fi. We look forward to seeing you next month.