The most popular mass medium is TV. It is, therefore, natural for advertisers to buy TV airtime. However, each region is unique in its purchase behaviour. There is need to segment TV footprint for an advertiser. How is it possible to bring region-targeted advertising to TV?
There are companies such as Amagi Vubites of Readiff and Adsharp of Star India who have attempted to tap a larger pool of advertisers by geo-targeting on various channels. They use an innovative method of enhancing the value of available ad inventory which allows advertisers to air different ads on the same channel in different regions to maximise the impact and reduce the costs. It is becoming a part of media planning cycle. Broadcasters have remained sceptical of geo-targeting. They feel that this may reduce the revenues it receives from national advertisers. They limit the targeted approach to a handful of channels in their network.
However, even broadcasters gain.They are able to split the feeds on the channels with the help of players such as Amagi, networks like Zee and Viacom 18. This helps inserting the target ads, which command better premiums.
Advertisers pick and choose inventory in specific markets on Zee TV, Zee Cinema and Zee News. They pay different amounts for different markets. The whole budget is higher by 20-30 per cent.
As there is too much waste in TV advertising, geo-targeting makes it cost effective.
Idea has used geo-targeting through split beam technology on TV for an ATL campaign on the launch of its 3G network in Delhi in 2015. If all the channels covered in national plan are used and geo approach is taken to increase the GRPs, we multiply the frequency in the market rather than the reach. However, for regular campaigns to improve sales and brand growth, frequency more than an optimal number is a waste. It can work in India if its quantitative model is worked out. Amagi has tied up with BARC where TV networks doing geo-targeting will be separately monitored.