What local TV gets right about data-driven measurement and targeting

The dawn of streaming TV was supposed to sound the death knell for traditional linear platforms, but the exuberant growth of premium SVOD channels has been met by the fiscal reality of churn, resulting in an uncannily cable-like bundling of streaming apps. What’s more, continual fragmentation has exposed the ongoing measurement challenges advertisers face in an evolving TV ecosystem still in search of a single source of truth. David Kline, executive VP of Charter Communications and president of Spectrum Reach, Charter’s ad sales division, joined John Dioso, editor of Ad Age Studio 30, at Cannes Lions. Kline weighed in on the state of the fragmented industry, including what brands could learn from local TV strategies, as well as how combining first-party data from set-top boxes in a privacy-focused manner along with artificial intelligence has resulted in efficiently produced, accurately targeted creative. Although it’s inevitable that streaming will overtake linear as the primary mode of viewing for all audiences, Kline argued that to reach the maximum number of viewers, “you have to have both. You can’t have one or the other. You may miss half your audience.” And while fragmentation has resulted in the loss of signal for individual TV networks, providers like Charter remain the de facto pipeline for millions of viewers and internet users nationwide—and by extension for advertisers who want to reach that audience. “We’re the ISP,” said Kline. “We’re the video provider in our markets. We have lots of inventory, so we can make it easy for our advertising customers to buy internet, video on demand, social search, you name it. We can all sell it all to you at one place. Local is where the action is happening, and our connectivity to the home makes it seamless.” What’s more, as the demand for privacy-focused first-party data becomes a premium for advertisers in a post-cookie world, the deterministic data from local providers’ set-top boxes combined with the data from its connected TV and digital users helps mitigate the myriad measurement challenges in the streaming era, according to Kline. “To have an effective campaign and to measure it, you need to have tons and tons and tons of data,” he said. “In Cleveland, Ohio,” for example, “there may be a thousand Nielsen boxes measuring everything, whereas Spectrum Reach may have millions of devices collecting data.” As measurement evolves from broad audience targeting to more precise, audience-specific strategies, Kline added, “it’s got to get more granular.” AI-enhanced reach and effectiveness Using the local approach to data-driven measurement, Spectrum Reach’s video production platform built on generative AI, launched last year through Waymark, helps create targeted ads efficiently, enhancing the reach and effectiveness of local advertising campaigns. The AI-powered platform, which enables the creation of ready-to-air TV commercials by analyzing business URLs and assembling scripts and videos in real-time, has already begun to pay dividends for the small- and medium-sized businesses that make up the bulk of the company’s advertisers—as well as for Spectrum itself. “While a network may have a thousand advertisers, we have 30,000 in any given year,” Kline said. “We’ve got over 7,000 AI-generated ads already this year, and we’ve generated tens of millions of dollars that we normally wouldn’t have.” About Spectrum Reach Spectrum Reach®, the advertising sales business of Charter Communications, Inc. (NASDAQ:CHTR), provides custom advertising solutions for local, regional and national clients. Operating in 36 states and 91 markets, Spectrum Reach creates scalable advertising and marketing services driven by aggregated and de-identified data insights and award-winning creative services. Spectrum Reach helps businesses of all sizes reach anyone, anywhere, on any screen. Additional information about Spectrum Reach can be found at https://www.spectrumreach.com.

What local TV gets right about data-driven measurement and targeting

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