November 5, 2013 | Blog | By Lightbox

There has been a great deal of press about the Tri-state Ford Dealer advertising program in the New York DMA that was orchestrated by the Digital Place-based Advertising Association.  A significant group of place-based video networks were integrated into a spot TV plan, effectively replacing about a fifth of the spot TV dollars starting in late September of this year. Deena Woodrow, SVP Team Detroit (WPP), noted that GRP’s increased 30% and reach increased 24% over the original spot TV plan, holding dollars level.

The DPAA members participating in the program hired Phoenix Marketing International to conduct research on the impact of place-based video, and the increase in awareness and purchase interest was dramatic.  We can’t divulge the results because of agreements with the parties involved, but it is interesting to look at the impact that the participating place-based video networks could theoretically have on a NY DMA four week plan targeting Adults 25-54, based on the Nielsen IMS Clear Decisions media planning system.  Almost all of the networks involved in the program have invested in IMS simulations that allow planners to look at the reach and frequency implications of shifting some TV dollars into place-based video.  Importantly, IMS also allows planners (and us) to look at the individual and collective impact of the place-based networks.  The net reach in the NY DMA of the ten place-based video networks with IMS simulations, in four weeks against A 25-54, is an impressive 72.0%.  It is also important to look at Effective Reach…the reach against individuals receiving at least four impressions (a measure of real impact)…with this measure, the ten place-based video networks reached 54.2% of individuals with at least four impressions.  This kind of reach gets into the realm of local broadcast affiliates.  Importantly, all of the place-based video networks do a great job of reaching light television viewers (MRI), so the media are complementary.

IMS also sheds light on the different roles that the place-based video networks play.  Looking at effective reach (see chart below), Adspace Digital Mall Network is the “scale player,” with 40% effective reach against A 25-54 in 4 weeks.  But Tier 2 auto dealer associations must build media plans that reach all of their dealers…inner city and farm country included.  Captivate and Wall Street Journal Office Network do a great job of reaching office workers where they work…in Captivate’s case, in the hard-to-reach Manhattan skyscrapers.  The other networks (IZ-ON, Outcast, Gas Station TV, Zoom Fitness) collectively provide geographic dispersion including low population density areas.  Everybody brings something to the party.  Importantly, these networks have invested in IMS, solving the common refrain that place-based video networks are hard to plan.

Increasing a brand’s marketing horsepower in the 20% to 30% range for the same dollar spending is meaningful…even CFO’s should be paying attention to that.  All it takes is a client stepping up and telling his agency to check it out.