|Special Report: The Power of Premion
Cathy Applefeld Olson
Looks like linear, acts like digital. With its assertion of premium content and ability to segment audiences, addressable OTT today empowers national brands to target local audiences at scale.
The rise of local relevancy is a boon for Premion, the TEGNA division that provides a CTV/OTT advertising platform offering directly sourced inventory and delivers measurable outcomes to advertisers in regional and local markets. Premion president Tom Cox shares with Cynopsis his insights about where the market is headed and breaks down the ways AVOD needs to evolve to realize its full potential—measurement standards and frequency capping, among them.
Local relevance is increasingly important for national brand advertisers in today’s viewing climate. What’s the local business model today and where is it headed?
We built our business on local, and we view local as our biggest competitive advantage. Between the TEGNA stations, the Premion sales force and the Gray Television stations we recently brought on as a strategic partner, we have feet on the street in markets that reach almost 75 percent of US households. These sales teams have long standing, trusted relationships with local advertisers and agencies. And now, obviously local relevance continues to be a top priority especially as businesses prepare for the phased reopening across different geographies. There’s an even greater imperative for advertisers to pursue a local approach through OTT as it enables advertisers to deliver targeted and contextually relevant messaging to consumers.
We’re now a few months into the disruption. What are you thinking about differently now as you move forward?
We’ve reprioritized a number of the advertising categories that we were focused on to reflect current market dynamics. The homebound consumer-related categories like home fitness, QSRs, tech, online education and home improvement in particular have been categories we were always playing in, but we’ve shifted more of our focus towards them. I anticipate that as the recovery takes hold, the category industry mix will evolve as well. For example, there will be an appropriate time when auto will start to rebound and retail will start re-emerging. We are very focused on understanding how the categories, the industries themselves, are evolving to make sure that we’re well positioned as these categories return and playing in the right places.
How is the rise in addressable TV aiding national brands in their quest to target local audiences?
Today, addressable OTT is empowering national brands to target local audiences at scale. They can target by designated market area, state, ZIP or combine geo-targeting with interest-based categorization. With addressable, targeting viewer data is captured and then analyzed in segments, and then applied to a campaign. Both national and local advertisers are seeing the importance of local plus OTT, and many of them are seeing more granular insights at a national to local level, to be able to personalize, localize and deliver more relevant ads to reach their desired audiences with the appropriate brand messaging. At TEGNA, given both our strong station footprint as well as our OTT business, we believe we’re particularly well-positioned to take the leadership role in that evolution.
A CYNOPSIS MESSAGE FROM PREMION