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Media advertising has the potential to drive brand awareness, build leads, and convert new potential customers. TV advertising, for example, can return $6.50 for every dollar spent on promotions.
The key for businesses lies in understanding how these various forms of promotions work and what advertising agencies mean when they use promotional jargon.
Consider, for example, a business that wants to build their brand advertising and therefore turns to a reputable agency. When the agency starts reviewing strategy options and different channels, a company that isn’t familiar with various advertising terms will struggle to have a meaningful conversation. They might feel intimidated by the agency and either hesitate to take the next steps or else put the future of their advertising strategy entirely in the hands of the agency. Remember an informed buyer is a better buyer.
At Gray Las Vegas, we have created a list of important media advertising terms that will help you through the buying process.
CPM
CPM stands for Cost Per Mille. It refers to charging brands a certain fee for every thousand (mille) visitors who see the advertisement. It can be used in online advertising as well as more traditional forms of promotion, such as TV advertising. Brands pay for every thousand people watching the show where their ad is shown.
CPM provides brands with an excellent way of building awareness. It allows you to track how many people are exposed to your brand at a given time through a digital campaign. With your ability to target specific demographics, you can also ensure that you build brand impressions within your targeted audience.
Impression
An impression refers to the number of times people are exposed to your particular ad. TV advertising platforms will count the number of times that your creative plays before an audience, which gives you a good idea of how many people are exposed to your organization and the messaging you want to promote.
OTT
OTT stands for Over The Top media. You are likely familiar with several OTT media providers, including Netflix, Hulu, and Prime Video. Specifically, this type of provider offers streaming options without customers needing to work with cable or satellite providers. As these providers have grown in popularity, these channels have also begun to offer more advertising opportunities. OTT ad revenue has grown 43 percent from last year and is expected to continue to rise over the next four years.
Reach & Frequency
The reach and frequency describe important factors in the impact of your ad. Specifically, reach refers to how many people are likely to see your ad. Frequency tracks how often these people will see your promotions, which is similar to the number of impressions your ad gets.
KPI
KPI stands for Key Performance Indicator. These are specific data points you want to track that will help you see how well you are working towards your goals. KPIs might be the number of impressions your ad receives, the number of customers who take advantage of a particular sale you promote, or the number of people who reference a specific ad.
Audience Composition
The audience composition refers to the demographics of the audience you target with a particular ad. You might want to target specific audiences based on age, region, gender, or other factors that align with your typical customers.
Spot Lengths
Spot length refers to how much time you have available for the advertisement you have created. For example, you might have a 30-second spot length, which means that your ad will need to fit in this spot. The 15-second and 30-second spot lengths are the most popular for advertisers, though 60-second spot lengths are also available.
Connected TV
A connected TV allows customers to go beyond only the stations they receive from their cable provider. In other words, customers with this type of TV can access internet-based channels. This allows them to watch YouTube, for example, opening up more opportunities for brands to advertise.
Addressable TV
Addressable TV content refers to ads delivered over major TV providers-- such as Comcast-- that can then be customized by household based on particular demographics or behaviors. For example, you can reach all the homes watching “Dancing with the Stars” who likely have children in the home or who live in a particular area.
Advanced TV
Advanced TV refers to the various ways that customers can now stream their favorite shows over the internet. It is generally used to describe all forms of TV that are not watched through traditional TV forms, such as cable, satellite, or broadcast.
Designated Market Area
The designated market area refers to a predetermined region of the United States that outlines market regions for television and radio. There are 210 current DMAs across the country, and they are often defined based on major metropolitan areas. The DMA you target can influence your demographic as well as the cost of the ad. Once sitting in the mid 40’s, Las Vegas now ranks 39 out of the 210 markets because of its fast paced growth.
As you consider the value of TV buying media promotional spots for your business, understanding these key terms will be very beneficial in deciding what is the best direction for your marketing efforts. Working with a qualified media partner will help you gain a deeper understanding of how to use these different options to your advantage and create the best possible promotion for your organization.
