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A-Z of Addressable: K is for KPIs

In the “A-Z of Addressable TV” series, we introduce some of the key terminology, technical aspects, and target audiences involved in addressable TV and explain how they enable advertisers to discover and reach new audiences. From ‘Addressable’ to ‘Gen Z,’ we’ve got you covered.

K is for KPIs

What is a KPI? And what KPIs are common in TV advertising?

KPIs (Key Performance Indicators) are used by organisations in every industry to measure results. These pre-determined targets are used to measure what has been successful and what has not worked as well to gauge the effectiveness and progress of specific initiatives, policies and campaigns. Tracking these quantifiable measures allows companies to assess whether the outcome has justified the time and cost output and to inform and optimise future decision-making.

TV advertising KPIs can be related to a specific creative or an entire campaign and typically focus on assessing ROI (return on investment) or ROAS (return on ad spend). Historically, TV was primarily used as a channel to drive primarily branding funnel metrics. But today we can see that TV also drives KPIs across the full funnel, including monitoring increased sales from existing or new customers, store footfall, website traffic, and brand uplift metrics, such as awareness, purchase intent, consideration and recommendation, and will depend on the stage(s) of the sales funnel that an ad campaign is targeting.

How does Addressable TV help you quantify KPIs?

Addressable TV provides a wide range of data points and insights to bring a data-driven approach to KPI monitoring. This allows brands to track their key business KPIs more precisely and consistently and make informed decisions that will optimise their investment.

Rather than relying on macro-level data or traditional analytics, addressable TV can pinpoint specific information that adds a new layer of clarity when monitoring and reporting on KPIs across the sales funnel.

Finecast’s addressable TV offering creates bespoke measurements and interrogates specific campaign data to track effectiveness, helping brands understand how a campaign has performed and inform smarter budget allocation decisions. This includes using unique brand uplift studies alongside data-based reach and frequency metrics to generate insights on things like consideration, brand awareness, and the likelihood of viewers to purchase from or recommend the brand.

Finecast Total TV Measurement is an industry-first solution that provides a measure of reach, frequency and incremental reach across the entire addressable TV and linear TV ecosystem – giving brands a true big-picture look at the impact that is being made and making it easier to provide actionable feedback.

Let’s look at an example of addressable TV impacting KPIs…

B&Q, the UK’s leading home improvement and garden living retailer, wanted to drive kitchen sales and raise awareness of a specific offer to increase footfall during the key January retail period.

They used Finecast’s addressable TV solution to target a specific audience segment – using YouGov panel insights, transactional information, and Experian and Axciom targeting segments.

Because they were able to deliver their campaign creative to just this specific segment who were most likely to engage and relate to the offer, B&Q saw a 5% uplift in actual store visits, and a 23% increase in store visit conversion for the stores and surrounding catchment area that had been exposed to the creative through Finecast targeting. Ultimately, this helped B&Q drive store traffic and kitchen sales throughout the campaign and achieve key KPIs.

For more information on how addressable TV can work for you, get in touch via the form below. And catch up on the full A-Z series to date here.

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