The encyclopedia · Marketing & Brand · Marketing decision · 2014–2020
Turner sold TV ads by targeted audience, lifting reach 27%.
Turner built forecasting and optimization to sell specific TV audiences instead of demographics, averaging a 27% lift and 20% lower cost per impression.
Turner Broadcasting System, Inc.
the move
Television advertising had been sold in demographic slices of a broad mass audience, so an advertiser paying for reach also paid for people it never wanted.
Turner built integrated forecasting and optimization models that predicted targeted and demographic audiences across a 24/7 schedule, generated media deals across all its networks, and scheduled commercials to balance conflicting ad-spot objectives.
The models powered TargetingNOW and AudienceNOW, launched in 2014 and 2015; by 2019 Turner had completed over 175 targeted media deals and was on track to buy half its ad inventory this way by 2020, worth billions in ad revenue.
why it works
- Advertisers pay for the audience reached, not the show
- Granular forecasting made a precise audience predictable
- Optimization placed ads to balance every spot objective
- Measured: 27% average lift and 20% lower cost per impression
what transfers
When buyers want a precise audience rather than a slot, forecasting that audience and optimizing placement can beat selling demographic inventory.
what came after
Audience targeting became Turner's core way to sell television advertising, proving a broadcaster could match what digital platforms offered; Turner extended the models to programing schedules and its Latin American markets.
references
- Turner Blazes a Trail for Audience Targeting on Television with Operations Research and Advanced Analytics
- FCC, TBS Cited For Analytics Prowess
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