-By Steve Miller
MTV is offering advertisers a jazzy new way to quantify their media
spends.
The cable net has contracted with Marketing Evolution, El Dorado
Hills, Calif., to offer a system based on meeting benchmarks
including awareness, relevancy, new purchase intent, purchase
loyalty and advocacy. Advertisers may still pay on a CPM basis, but
also have the option to contract with Marketing Evolution to
measure the success of their buys.
"We are creating a made-to-order tool for marketers," said Todd
Cunningham, svp-strategy and planning at MTV Networks, New York. He
said the effort is an extension of "transference"—the concept that
advertisers transfer consumer awareness from the media brands
where they place their messages—a practice that the network
holds in high regard.
The new initiative does not follow any single platform, so that
it's "platform neutral," said Carolyn Everson, MTV's evp-strategy
and operations, U.S. ad sales.
"We do for a large part go to market with a 'here are our brands
and this is how we connect' sort of attitude," Everson said. She
added that the plan will not be used by all of MTVN's clients
because "there will continue to be plenty of media buys that are
based on frequency goals. This tool will take the clients that want
to fit collaboratively and understand how we are using the various
platforms."
The pitch comes as the network has struggled with its youth-skewing
brands, including MTV and VH1, which, while drawing close to a
million viewers a night, suffer from a loss of 10% of that
viewership during breaks, in the case of VH1, per the
company.
And the MTV channel's emotional attachment is relatively low with a
rating of 0.36, per Nielsen Media Research, below networks
including Spike, Discovery and Sci Fi.
"What we are trying to do here is address the nature of the habits
of younger viewers and consumers," said Rex Briggs, CEO at
Marketing Evolution. "CPM is kind of a dinosaur in this new
program. We want to measure the true impact. CPM has always been
pretty irrelevant. This can show true cost for return."
Bob Jeffrey, global CEO at JWT, New York, said the move makes
sense: "It's not a surprise that MTV would do something like this,
and that they are aggressively going to a client with those
marketing platforms to demonstrate what it can do in an ROI kind of
way. This is where the world is going . . . there is more marketing
pressure to be more surgical, more precise."
MTVN could set an example for others and its new concept is a
direction that other large media companies need to explore, said
Chris Vollmer, partner at Booz & Company, New York.
"Media companies sit on top of so much information [on] what
resonates with the consumer," Vollmer said. "They are creating and
aggregating audiences every day, and they are in a better position
to help marketers."
MTV Networks Puts New Advertising ROI Metrics Into Rotation
June 29, 2008
-By Steve Miller
MTV is offering advertisers a jazzy new way to quantify their media spends.
The cable net has contracted with Marketing Evolution, El Dorado Hills, Calif., to offer a system based on meeting benchmarks including awareness, relevancy, new purchase intent, purchase loyalty and advocacy. Advertisers may still pay on a CPM basis, but also have the option to contract with Marketing Evolution to measure the success of their buys.
"We are creating a made-to-order tool for marketers," said Todd Cunningham, svp-strategy and planning at MTV Networks, New York. He said the effort is an extension of "transference"—the concept that advertisers transfer consumer awareness from the media brands where they place their messages—a practice that the network holds in high regard.
The new initiative does not follow any single platform, so that it's "platform neutral," said Carolyn Everson, MTV's evp-strategy and operations, U.S. ad sales.
"We do for a large part go to market with a 'here are our brands and this is how we connect' sort of attitude," Everson said. She added that the plan will not be used by all of MTVN's clients because "there will continue to be plenty of media buys that are based on frequency goals. This tool will take the clients that want to fit collaboratively and understand how we are using the various platforms."
The pitch comes as the network has struggled with its youth-skewing brands, including MTV and VH1, which, while drawing close to a million viewers a night, suffer from a loss of 10% of that viewership during breaks, in the case of VH1, per the company.
And the MTV channel's emotional attachment is relatively low with a rating of 0.36, per Nielsen Media Research, below networks including Spike, Discovery and Sci Fi.
"What we are trying to do here is address the nature of the habits of younger viewers and consumers," said Rex Briggs, CEO at Marketing Evolution. "CPM is kind of a dinosaur in this new program. We want to measure the true impact. CPM has always been pretty irrelevant. This can show true cost for return."
Bob Jeffrey, global CEO at JWT, New York, said the move makes sense: "It's not a surprise that MTV would do something like this, and that they are aggressively going to a client with those marketing platforms to demonstrate what it can do in an ROI kind of way. This is where the world is going . . . there is more marketing pressure to be more surgical, more precise."
MTVN could set an example for others and its new concept is a direction that other large media companies need to explore, said Chris Vollmer, partner at Booz & Company, New York.
"Media companies sit on top of so much information [on] what resonates with the consumer," Vollmer said. "They are creating and aggregating audiences every day, and they are in a better position to help marketers."