Is My TV Really Smart Enough to Track – And Sell – All My Ad-Watching Data?

Well the Doc opened up the old mailbag today and here’s what poured out.

Dear Dr. Ads,

There I was, minding my own business and tooling around Xitter, when I came across this post from the always lively and informative David S. Bernstein.

Here’s the rest of Maggie Severns’ post: “. . . you’ve been hit with and how often. Sometimes they can connect TV data to a voter file, or tie your TV to your IP address, allowing ads to follow voters from one screen to another.”

That’s some serious surveillance, yeah Doc? Is that even legal? It sure doesn’t feel kosher.

– Oh Well

Dear OW,

It’s actually worse than you think, as NOTUS reporter Maggie Severns notes.

“Television now watches us more than we watch it,” said Jeff Chester, executive director of the nonprofit Center for Digital Democracy. “The same kinds of strategies used to track and target individuals in order to sell advertising popularized by Google and Meta have been purposely and deliberately exported to the television.”

Televisions that can stream platforms like Hulu or Max usually come loaded with technology that collects information on what viewers are watching, and buyers consent to have their viewing tracked when they open their new TV and click through terms of service agreements. Sometimes, data firms can connect those viewing habits to a voter’s phone or laptop via their IP address, promising a trove of information about an individual and the ability to track them across screens.

In other words, political campaigns can attach themselves to your digital data like Tim Scott to Donald Trump’s tush.

Of course, the question then arises: Does political advertising even work in this day and age? (The Doc diagnosed the current condition of presidential primary ads here.)

On the one hand, according to this piece by New York Times reporter Nick Corasaniti, traditional campaign ads are far less efficient than they used to be.

According to Cross Screen Media, an ad analytics firm, only 63 percent of Iowa Republicans [were] reachable with traditional or “linear” TV ads [this year], as viewers switch to streaming and social media. In 2016, that percentage was still in the 90s. At most, Republican campaigns this year reached 42 percent of likely caucus voters.

On the other hand, as Politico’s Jessica Piper reported, a study by Swayable, a platform used by Democrats to test the effectiveness of different messages and advertisements, was more encouraging: “[The] study’s authors . . . note that the greatest benefits would likely accrue to the best-funded campaigns and groups that can afford to create (and test) many ads in real time, not cash-strapped efforts further down the ballot.”

Either way, traditional television spots are definitely the wave of the past. Which makes the smart TVampires even more attractive to political campaigns, as NOTUS’s Maggie Severns wrote.

Today, more than half of ads booked on traditional television go to target only 11% of swing voters, according to data collected by Cross Screen Media, an analytics firm started by GOP operative Michael Beach.

Cross Screen Media estimates that close to 40% of video advertising budgets — around $4.2 billion — will go to digital ads this cycle, up from about 27% four years ago.

The Doc’s diagnosis: When your TV is smarter than you are, go listen to the radio.

Are Peleton’s Wildly Expensive Newspaper Ads an Exercise in Futility?

Well the Doc opened up the old mailbag today and here’s what poured out.

Dear Dr. Ads,

There I was, minding my own business and slogging through the Sunday New York Times (there really should be a federal subsidy for that, don’t you think?) when I came across this half-page ad.

That was followed by two more half-page Peloton ads and a full-page one – all in the Times A section, which on Sunday is the Ritz Carlton of advertising venues.

Here’s the thing, Doc: A woman I know – smart, well-read, beautiful – saw one of Peleton’s ads in the Times and this is all that registered with her.

Do Peloton’s ad people have any idea how real people see advertisements? I have my doubts.

– Peletone-Deaf?

Dear Peletone-Deaf,

For those of you keeping score at home, here are the other Peleton ads in Sunday’s Times.

A similar quartet of ads ran in Saturday’s Times and the Weekend Wall Street Journal.

As Phoebe Bain wrote in Marketing Brew earlier this month, “Between high supply and low customer acquisition, the brand’s marketing department is ‘under pressure to deliver,’ per Ad Age. Experts told the pub that fewer pricey campaigns and more investment in brand loyalists could be the company’s best plan of attack.”

Coincidentally, Monday’s Times featured an interview with new Peleton CEO Barry McCarthy – conducted by the paper’s DealBook macher Andrew Ross Sorkin and reporter Lauren Hirsch – in which McCarthy, the former chief financial officer of Spotify and Netflix, predictably came across as ten pounds of bravado in a five-pound bag.

As for the Peleton print ads, Peter Adams at Marketing Dive reported that “Peloton is pushing a new advertising campaign that includes testimonials from customers who were initially skeptical of the connected fitness brand but have since become loyal converts.”

Peloton’s latest ad campaign isn’t subtle. The marketer is throwing a spotlight on customers who have doubted it in the past but are now devoted to fitness regimens run through its connected bike and treadmill products. The implication is that Peloton will be able to weather its current headwinds based on its ability to foster long-term loyalty. Its services now wield about 6.6 million subscribers.

“This campaign is leading with the unvarnished voices of our members at a time of heightened skepticism because nothing is sharper than the truth,” said Dara Treseder, chief marketing officer of Peloton, in a press statement.

Those unvarnished voices, however, are not unanimous, as the Marketing Dive piece noted.

Posts on social media go deeper in profiling individual users who improved their lives thanks to Peloton. But digging into the comments reveals plenty of frustrated customers as well. Several Instagram users took the campaign as an opportunity to complain about no-show deliveries, issues with scheduling repairs on bikes and other technical issues — potential signs of the marketer’s broader operational issues.

Sounds like Peleton’s print campaign might turn out to be an overpriced coat rack.

Ride on . . .