Digitization offers local media, agencies, and advertisers opportunities to increase their performance and competitiveness. This is particularly thanks to primary data, measurement, contextual environments, attribution models, optimization, and purchasing methods.
The rise of digital technology and tech giants’ domination have greatly impacted local media. Today, they are going through a crisis that reflects the competitive and legislative challenges of our industry. In Chinese, the word ‘crisis’ (weiji) is composed of the symbols for danger and opportunity.
The Importance of First-party data
The disappearance of third-party cookies and mobile identifiers fundamentally changes the options available for online targeting for all players. These were used to track user behavior from one domain to another (website or mobile application), build a precise profile of users based on their actions, and then categorize them. The Lightbeam application showed us that after visiting only 12 sites, a typical user could end up with nearly 450 trackers on their browser.
Along with the arrival of Bill 25, which requires, among other things, explicit, mandatory, and specific consent to collect user data, primary data is becoming increasingly valuable. Some local media are proposing the use of Data Clean Rooms. These allow them to anonymize and pool their first-party data with that of the advertiser to create highly qualified targeting without compromising user data confidentiality.
Contextual Environments
We now have a less holistic view of a user’s digital journey, making it more complex to target advertisements based on their interests. To remedy this, advertisers need to reach consumers in relevant environments that reflect their interests to ensure the relevance of advertising messages. Since this is a content-based strategy, our media have a competitive advantage. Particularly compared to social media, which are merely news feeds.
Example: Fonds de Solidarité FTQ campaign in the Personal Finance section on LaPresse
Measure
Not all advertising impressions (views) are equal. Many factors influence consumer attention and thus their receptivity to receiving an advertising message. To name just a few, there is the ad format, the placement on the web page, the advertiser’s share of voice, the exposure time, the broadcast time, the method of consumption of the chosen media, the content consumed at the time of exposure, etc.
We notice an increase in options to measure attention and, thus, advertising impact. These allow us to surpass short-term measures such as clicks, purchases, or website visits. For example, Contextful measures ad receptivity according to micro-patterns (scrolling, clicks, time spent, device manipulation, and various other interactions), DoubleVerify measures viewability, and RealEyes measures attention based on eye position and facial reactions.
Attribution
Digital platforms target the most qualified consumers to take action, which allows them to have a high conversion rate. The results generated are based on a limited attribution model that does not (or very little) consider the contribution of other media in the conversion process or the temporality of advertising effects. This measure unfairly penalizes media that do not offer direct and immediate marketing returns.
Econometric modeling from the ThinkBox Profit Ability 2 Report has shown that the faster advertising memorability declines, the shorter the marketing effects (results). For example, television has a memorability rate of 66% week after week and generates marketing results over eight weeks. For PPC tactics, the memorability rate is 25% week after week and generates results over two weeks. Media channels have short and long-term effects to varying degrees.
Advertisers, therefore, restrict sustained profitability by prioritizing direct and instantaneous performance channels.
Real-Time Optimization
Self-service platforms offer budget flexibility that distinguishes them from premium media competitors. Campaign parameters selected in advance, such as dates, budgets, targeting, etc., are adjustable any time. This is a significant competitive advantage for advertisers with aggressive marketing objectives.
We already observe that some local media are taking advantage of a self-service operation to be more accessible to advertisers, such as Le Guichet by Quebecor, Atelier Direct by LaPresse+, or PubM32, which represents a dozen local Quebec publishers. Some inventories are also available on programmatic platforms.
CPM Buying
Even today, broadcast media are purchased in units of efficiency, in GRPs (Gross Rating Points), by market. GRPs are calculated by multiplying reach (%) by average frequency. Budgeting a presence on radio or television, therefore requires a minimum investment in each targeted market to ensure impact.
In contrast, digital media does not require this consideration. Inventory is purchased by the absolute number of views at CPM (Cost per Thousand Impressions). Buying by CPM is independent of the size of the targeted markets and, therefore of the brand’s impact. With this type of purchase, it seems more accessible for national advertisers to generate extensive geographical reach, although potentially inconsequential.
Conclusion
Industrial disruptions induced by technological innovations are inevitable, but they must be leveraged for the benefit of Quebec and Canadian media.
Raising awareness among the Quebec population about the necessity of local media is not enough.
Educating advertisers about the relevance of local media is not enough.
Governments must adequately support our media at the legislative and financial levels to ensure healthy and fair competition.
Local media must arm themselves with proactivity and speed to leverage the advances offered by the immediacy of digital for their clients.
Advertisers and agencies must more accurately measure the marketing impact of their media investments to maximize their performance.
