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TV Viewing and Advertising Targeting

Deng, Y; Mela, CF; (2018) TV Viewing and Advertising Targeting. Journal of Marketing Research , 55 (1) pp. 99-118. 10.1509/jmr.15.0421. Green open access

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Abstract

Television, the predominant advertising medium, is being transformed by the microtargeting capabilities of set-top boxes (STBs). By procuring impressions at the STB level (often denoted “programmatic television”), advertisers can now lower per-exposure costs and/or reach viewers most responsive to advertising creatives. Accordingly, this study uses a proprietary, household-level, single-source data set to develop an instantaneous show and advertisement viewing model to forecast consumers’ exposure to advertising and the downstream consequences for impressions and sales. Viewing data suggest that person-specific factors dwarf brand- or show-specific factors in explaining advertising avoidance, thereby suggesting that device-level advertising targeting can be more effective than existing show-level targeting. Consistent with this observation, the model indicates that microtargeting lowers advertising costs and raises incremental profits considerably relative to show-level targeting. Further, these advantages are amplified when advertisers can buy in real time as opposed to up front.

Type: Article
Title: TV Viewing and Advertising Targeting
Open access status: An open access version is available from UCL Discovery
DOI: 10.1509/jmr.15.0421
Publisher version: https://doi.org/10.1509/jmr.15.0421
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: TV advertising, targeting, set-top box, sampling, programmatic television
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > UCL School of Management
URI: https://discovery.ucl.ac.uk/id/eprint/1567200
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