LG Ads Solutions, which sells targeting data and ads on LG smart TVs, said it will guarantee that its commercials will meet agreed to performance goals. If they don’t, the advertisers don’t have to pay.
The announcement by LG comes as the TV ad industry shifts from simply selling impressions to targeting ads and being able to measure the impact campaigns have driving sales.
LG’s outcome guarantees are based on third party data, starting with app installs. LG Ads plans to make guarantees based on tune-in, web visits and physical location visits in the coming months.
LG Ads also ensures that native and CTV video ads running on LG smart TVs meet clients’ reach and frequency goals, demographics and gets paid only for ads that are viewed 100% to completion.
LG recently made a deal with iSpot that gives iSpot access to automated content recognition viewer data from LG sets. LG will also have iSpot validating the reach, frequency and incremental delivery of campaigns.
iSpot is one of a growing number of data and analytics companies doing attribution, which means measuring how much an ad contributes to a brand in terms message recall, consumer response and ultimately product sales.
More media companies are providing attribution data to their advertising clients and increasingly they are guaranteeing performance against key metrics. Companies making outcome guarantees have included Simulmedia and A+E Networks.
As a new, fast-growing medium, CTV promises to be more targetable, more measurable and more accountable.
“We’re turning the tables for advertisers, making performance not just something brands aim for, but something that is actually guaranteed,” said chief executive officer Raghu Kodige. “Whether driving sales, conversions, or customer acquisition, advertisers struggle to quantify ROAS for TV spend. We created this extensive program as the starting point in a new paradigm for TV-driven outcomes in which marketers are assured every CTV ad dollar hits the bullseye.”
The Guaranteed Outcomes program covers ads streaming on the free streaming channels on the LG Channels platform, on the LG content partner network. The guarantees can be accessed through a managed service or via programmatic buys.
"Guarantees on media buys are a great step in the right direction for the industry; particularly when they are backed by third-party verification for full transparency,” said Huw Griffiths, global chief product officer at Universal McCann. “Being able to pay only for media only when it achieves a campaign goal is a big step toward eliminating waste, and addresses a big problem for advertisers."
"Transacting on guaranteed outcomes has been a missing piece of the puzzle with CTV. Being able to pay only for media that achieves an advertiser's specific goal is a real game changer,” added dentsu Media’s chief addressability officer Keith Carmoosa. ■
