How performance agencies are unlocking a new acquisition channel (and revenue) with TV
Andy Schonfeld, Chief Revenue Officer, Tatari
Many digitally-native brands are now utilizing streaming and linear TV for the first time as they diversify their media mix beyond search and social. While this is a huge shift, this democratization of TV is largely happening at the brand level and less so at agencies.
There is a massive opportunity for the thousands of smaller agencies with strong digital experience to further this democratization and bring the power of TV to more brands. TV ads will not only help their brands grow but also add revenue and profitability to the agencies themselves.
How to dispel agencies’ TV misconceptions
Like their clients, many of today’s most successful mid-sized agencies came up in the digitally-focused programmatic space and have little in-house TV expertise. They fear the perceived learning curve of entering the TV space. Therefore, they are likely to refer TV-curious clients to external resources or vendors when they express interest in expanding beyond their current efforts in social, search, email and other established digital channels.
This decision to pass off TV opportunities is based on several misconceptions. There is the misunderstanding that TV is less accountable and measurable than other digital channels and thus clashes with their existing client efforts. There is also a belief that TV buying requires an established roster of deep relationships in the industry or that entering TV requires a massive outlay of budget and resources. Other concerns may be that affordable inventory is low quality and that reporting could be faster.
The fact is that the above hesitancies shouldn’t hold back agencies. With the right platform and partnerships, agencies are adding TV into the media mix for clients in a full-funnel and highly accountable way. TV ad measurement is changing, and the outdated legacy methods are giving way to the same metrics performance marketers care about (and agencies are highly familiar with); cost-per-view, cost-per-acquisition, customer-acquisition-cost and return on ad spend.
TV does not require massive outlays, and it’s possible to spend efficiently and still purchase national ad time around live sports or TV show premieres. This can be done without markup, allowing agencies to decide on their own cost margins for offering TV. Better still, the modern era of TV advertisers allows next-day reporting without a heavy manual lift from the agency.
Agencies can license TV ad solution platforms, and the relationships needed to access premium linear TV and CTV inventory are built-in. These platforms also equip agencies with the tools, data and predictive intelligence to offer effective TV advertising to their clients. By adding TV to their offering of supported performance channels, agencies are helping their clients grow and unlocking new revenue for themselves.
Why agencies are entering the TV mix
If agencies continually refer clients outside of their walls, they’re going to devalue their relationships with their clients and see a steady migration to large holding companies or direct vendor relationships. In other words, neglecting TV creates a vulnerability for agencies.
That said, it also creates a vulnerability for their clients. These growing brands want to get into TV in the same way they’ve entered other channels— with transparency and modern measurement that can be compared alongside other campaigns. Their agencies offer cross-channel expertise and are best positioned to see TV’s halo effect on overall performance.
Today’s performance brands are moving into TV, and they want help. Their existing digital agency partners are best positioned to help them in a comprehensive and outcomes-driven way — and in doing so, help themselves by becoming more valued (and profitable) partners to their clients.
Sponsored by: Tatari