It always seems impossible until it’s done.
CORRECTLY VALUING TV ADVERTISING WITH CPM

CORRECTLY VALUING TV ADVERTISING WITH CPM

Need for ‘Alternative Currency’ for Linear TV Ads in Japan

Why Are We Focusing on This Issue?

I was always a TV kid, and I still love watching TV. As a student, I was fascinated by program productions and news reporting, but I am not an expert in the technical aspects of content creation.

What does the future hold for television in terms of technology? DVB-I, ATSC 3.0, HbbTV, CSAI, BB alternative… I have done some studies, but it is full of difficulties. It will take much more time.

But with the knowledge I’ve developed so far. In the field of domestic TV advertising, I because more can do.

 

Yoshiteru Umeda
Programmatica Inc. Founder & CEO


 

The Most Important Message

Linear TV Ads in Japan Needs Alternative Currency

  • The legal distinction between “broadcasting” and “telecommunications” is evident in Japan, and many restrictions remain.
  • While the environment differs from the U.S., persons using television (PUT) continue to decline, streaming viewing is increasing, and fragmentation of viewing is becoming more pronounced.
  • Premium streaming ad inventory is on the rise. The TV vs. digital ads era is over, and a new system is needed to fit the current situation.
  • So, what are the issues in the transaction currency of linear TV ads in Japan?
  • There may be problems with GRP trading for TV commercials.
  • Since TV ads cannot be increased due to JBA* regulations, is there any way to increase revenues other than through higher ratings or cost per percentage?
  • TV’s “real value” needs to be reviewed regarding quality and quantity.
    *The Japan Commercial Broadcasters Association

 

Work to Increase Revenue is Urgently Needed

Organize Key Points for Proof of Concept

Consistency of Targeting and Measurement

Advertiser Merit Verification Required

Confirmation of PoC Possibility

Evaluation Approach in “TV x Streaming Era”

CPM Differences for 32 Broadcast Areas

Re-segmented by Advertiser Marketing Area

Example① of Advertisers’ Area Allocation

Example② of Advertisers’ Area Allocation

 

Yoshiteru Umeda
Programmatica Inc. Founder & CEO