Key Highlights:
- Broadcasters globally are shifting towards performance-driven advertising models
- TF1+ demonstrates how traditional TV companies can embrace digital transformation
- Data and audience segmentation becoming crucial for streaming services
- Marketing focus varies significantly based on brand maturity stages
- Performance attribution remains complex across multiple media touchpoints
The television industry is undergoing a significant transformation as traditional broadcasters adapt to the digital age. A prime example is French broadcaster TF1’s ambitious move to convert its streaming service TF1+ into a comprehensive marketing platform, balancing both brand building and performance metrics.
The Digital Transformation of TV Advertising
According to eMarketer’s 2023 report, connected TV ad spending is expected to reach $25.09 billion in 2023, representing a 27.2% increase from 2022. This growth reflects broadcasters’ increasing focus on digital capabilities and performance metrics.
Data-Driven Decision Making
François-Xavier Pierrel, TF1 Group’s chief data and adtech officer, highlights how the broadcaster has revolutionized its approach through Graph:ID, an audience graph developed with Snowflake. This system combines:
- User registration data
- Viewing behaviors
- Stable identifiers (email addresses)
- Integration with retail partners
The Growing Importance of First-Party Data
Research from Deloitte’s Digital Media Trends Survey 2023 indicates that 82% of media companies consider first-party data crucial for future growth. TF1’s experience with 25 million user profiles demonstrates the scale of this opportunity.
The Performance vs. Brand Building Debate
The challenge of performance measurement across multiple touchpoints raises an important industry discussion. According to the ARF (Advertising Research Foundation), successful campaigns typically require 6-8 touchpoints across different media channels for optimal effectiveness.
Brand Maturity and Marketing Strategy
Research shows a clear correlation between a brand’s maturity and its marketing focus. As illustrated in the chart below, the balance between activation and brand building shifts significantly as companies evolve:
The data reveals interesting patterns across different stages:
- Startups: 65% activation, 35% brand
- Early Growth: 43% activation, 57% brand
- Mature: 38% activation, 62% brand
- Leader: 28% activation, 72% brand
This data aligns with research from Binet and Field’s “The Long and Short of It” study, which suggests that brand building becomes increasingly important as companies mature.
Future Implications for Streaming Services
For streaming platforms, the evolution toward dynamic ad insertion and audience segmentation represents a crucial step. McKinsey’s 2023 media report suggests that streaming services with advanced targeting capabilities can achieve up to 3x higher CPMs compared to traditional linear TV.
While performance metrics are important KPIs, they cannot be attributed to a single media channel. The effectiveness of media campaigns relies on multiple touchpoints working together cohesively, making individual channel attribution challenging but necessary for optimization.