Exact Commercial Ratings: Improving Advertising Effectiveness

On January 22nd, I presented at the Association of National Advertisers (ANA) forum on Exact Commercial Ratings®. The following are some highlights. Feel free to email me at bruce.goerlich@rentrak.com to get the full shebang.

Rentrak provides Exact Commercial Ratings® for nationally advertised products to its clients through the merger of Kantar Media’s ad occurrence information with the second-by-second tuning data from more than 20 million televisions across virtually every residential ZIP code in the U.S. This allows our clients to see how national TV ads actually perform, be they 15, 30 or 60 seconds long.

There are several strategic questions for national advertisers and their agencies to ask regarding how Exact Commercial Ratings® (ECR®) can help improve advertising effectiveness. To highlight a few:

How did my commercial perform versus other commercials in the program? Ad effectiveness is not just how I did, but how I could do better.

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How does my Exact Commercial Rating® work best by pod position in a program? Pods of commercials are how ads are placed. Understanding how that placement is working is another way to improve ad effectiveness.Image

Buy placement – what can we do better in the future? And how does that work for Advanced Demographics? Seeing how networks, dayparts and pod positions perform over an entire quarter (or even longer), can lead to more effectiveness for the buyer and more sales for a network.

Combined with a long-term view, being able to look at demographics that go beyond age and sex is quite powerful. The case shown below looks at very high-income households across several networks for a quarter. CNBC has more audience leverage with upper income viewers than with the total population. With the combination of Exact Commercial Ratings® and Advanced Demographics, an advertiser can have both precision in the buy, as well as in the target. Ultimately this knowledge of what works and what doesn’t makes an advertiser’s investment both more effective and have higher ROI. Image

There are quite a few other strategic issues that ECR® can help advertisers with. I haven’t even addressed the question of currency – should ECR® become the currency? Rather than a broad scale measure of all ad performance over 3 days (including playback), with Rentrak’s Exact Commercial Ratings®, it is possible to have precise buys based on 7, 15 or even 28 days. But such questions are beyond my pay grade.

In case you don’t know, I am Bruce Goerlich, Chief Research Officer at Rentrak, the global standard in movie measurement and your TV Everywhere measurement and research company. I have been in the research end of the marketing business for more than 30 years primarily on the ad agency side, with my last stint prior to Rentrak in the role of President, Strategic Resources Zenith Optimedia North America. Somewhere along the way I morphed from young Turk to old fogey. Now that I have grey hair and am horizontally-challenged, I can speak with some authority on advertising and research issues – which I will do from time-to-time on this blog.