Proximity Beyond Audiences Reimagines Performance Metric For TV

Proximity as a targeting metric is poised to become one of the most effective performance metrics that advertisers tend to overlook in favor of audience-based approaches, according to Blockgraph, a technology platform for the TV and connected TV (CTV) industry, and the American Association of Advertising Agencies (4As).

“The industry has been focused on targeting people based on who they are, not where they are, using crude and blunt tools,” Jason Manningham, CEO of Blockgraph, told MediaPost. “Audience targeting was used to drive performance, but it’s important to know how close they are to an actual store where they can purchase the products.”

Manningham said 93% of consumers travel less than 20 minutes to a store, and advertisers seem to have forgotten about being more data driven based on proximity.

Determining the location of the household becomes key before serving the ad. A consumer may not want to drive far to find a QSR, Manningham said, but if it’s an auto dealer where the consumer would make a large purchase, that could change.

Amy Pacheco, director of media, tech, and data at the 4As weighed in for this piece, noting, “Local TV is approximately half the market.”

The report, “Proximity and Performance: How Closeness Drives Outcomes Across the Media Mix,” shows that households within a brand’s effective conversion radius are much more likely to respond to ads than those outside it, suggesting the industry should update its media planning, buying, and selling strategies.

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