If Covid taught the television advertising industry anything, it’s that performance-based metrics saved the day. While traditional TV advertising metrics were trying to figure out how to properly count pandemic eyeballs, performance-based television advertisers were counting consumer responses and consumer actions in real time. Joseph Gray, CEO of DRMetrix comments, “It’s amazing when during a huge media disruption you have one sector of the industry that has 20/20 vision. Performance-based television advertisers could see what was really happening with their TV advertising investment and KPIs in real time down to the network, daypart, and creative level. What they discovered is that response levels were at an all time high while media rates were at an all time low. Moreover, performance-based television advertisers could measure that consumers were still responding, engaging, and buying.”
In the early fall of 2020, DRMetrix released a study regarding the impacts of Covid-19 on the direct-to-consumer (DTC) television advertising industry. The study showed that the top 50 DTC web/mobile advertisers reduced their expenditures during the quarantine lock down period by 34% while the top 50 performance-based advertisers increased their media expenditures by an incredible 76.6% helping to save the day for many television networks.
DRMetrix’s new “Covid Edition” 5 x 5 industry study covers trends in the larger direct-to-consumer industry from 2016 – 2020 and shows the impact of Covid-19 on different classifications of the industry. The study stands as a testament to those performance-based television advertisers who helped to sustain the industry during difficult times and profited in the process. It also stands as an excellent case study for all of the web/mobile advertisers that have been flooding into television in recent years proving that performance-based techniques can help them make television more accountable similar to online advertising. Gray reflects, “When advertising on television, these advertisers don’t have to give up measurement and accountability. They can have their cake and eat it too if they discover and implement performance-based television techniques.“.
Download DRMetrix’s new 5 x 5 Industry Study by clicking here.