News

‘Demos are still number one for clients’: IAB’s Le Roy and Omnicom’s CIO

“Demos are still by far the number one area that clients are looking at,” IAB Australia’s CEO Gai Le Roy said during a panel discussion in a session at Mumbrella360 last week.

Samsung Ads general manager, Alex Spurzem hosted the session and asked panelists Le Roy and Omnicom’s chief investment officer, Kristiaan Kroon, did they think that addressable TV is bringing new advertisers to TV, or is this an exercise of traditional TV advertising slowly adopting a new medium?

“From the research that we do, and we do a lot of spend across the market, it’s both digital and linear TV, however, there is definitely a skew to linear TV,” Le Roy said. “If I look at the investment mix of categories for all digital versus digital video, there is a lot of skew to FMCG and insurance, and household goods and areas that we normally see have a very strong TV investment.”

Kroon added: “There are not a lot of advertisers in Australia who are not already on linear TV. I think it’s more about where are the budgets coming from. You’ve got linear TV budgets coming across.”

Later in the session, Spurzman asked Ley Roy and Kroon what are the main ways in which advertisers and of course agencies on their behalf use connected TV to find audiences?

As previously mentioned, Le Roy noted: “We are seeing from data that we’ve collected, and also what Kristiaan on the ground would see, is demos are still by far the number one area that clients are looking at.”

“And with targeting, we have always targeted, whether that be first-party data, panel data, or types of audiences. So, definitely, the demographics, context, a little bit of when we look at the broader video side of things, location data coming in the mix, as well. They’d be the top areas that are coming through from our side,” she said.

Kroon agreed, saying there’s always been attention with scale and precision. “In Australia, because of our size, this is really hyped up. The US as an example, ten times our size, is far less of an issue,” he said. “We really do have people wanting precision, as it drives efficiency, but are they still getting scale? So, the vast majority of buying is still bought on broad demos, because otherwise, it doesn’t have an impact on a client anymore, because you’ve gone too far with scale.

“I think that remains over time how we use measurement, and we shouldn’t confuse measurement with currency, how we use measurement to make buying decisions, becomes more sophisticated, but it’s still got to deliver scale. And so, that’s always the first point, have we still got scale? because if we haven’t, we must go backward. If you lose scale, you can’t deliver an outcome that’s positive, so the scale has got to be there.

“But yes, using all those different data players, postcodes are very interesting too, in particular, because of things like shopping intent, if you look at Flybys which are a partner of ours, that data can be applied to a postcode level, I can use that in a CTV environment, I can’t use that in the linear TV environment. So, that becomes far more advanced, if you like from what we’ve had before.”

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.