The line has blurred between National Broadcasters and Cable Programmers.  The Walking Dead on AMC is a top-rated show; Monday Night Football runs on ESPN.  Advertisers wanting to reach consumers on a local basis in these programs are quick to consider Spot Cable as a viable advertising vehicle.  Agencies looking at viewing shares and trends in the local Nielsen books are eager to build the medium into their local media plans and buys.  The industry has come a long way in evolving Spot Cable from a commercial-count-only transaction, to having measurable audiences.  National Cable Communications (NCC) has been at the forefront of creating an index and methodologies to make this medium feasible for the accountability-minded advertiser.    It follows that their growth is dependent upon the support of large advertisers’ and their agencies’, which is tied to their ability to quantify impressions and ratings.  Nielsen Media Research alone does not offer this capability.

In order to understand some of the complexities of the Spot Cable ecosystem, it’s important to be familiar with a few key entities and concepts:

What we tend to see, however, is a tremendous lack of consistency in the way that Spot Cable is handled by individual agencies, and a general lack of knowledge by clients (and even their agency people) with respect to some of the nuances of this growing media channel.  So, read on for five key concepts that are crucial to understand in assembling any media plans or buys that include Spot Cable.

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Well done! Monitor Plus service contemplated reporting on Spot Cable (as I recall, in the early 2000's). They ultimately decided it wasn't feasible -- $1 Billion required to support the service.

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What should an advertiser or agency do?  Be educated.  Consider the costs relative to local broadcast stations as well as to National buys (if an option).  Think about the insertable geography that can be covered or not, and how narrowly the desired programming can be purchased and/or guaranteed.  Discuss any compromises that may have to be made based on the available data and ramifications on audience guarantees.  And most importantly, continue to advocate for improvements in measurement and accountability for this medium the same way we do for any area of media investment.

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Why is all of this important?  As this channel continues to grow, it’s important for there to be better standardization and documentation with respect to the way that data is handled, so that clients have full transparency into the process and results.  Particularly as more and more spot cable inventory is traded programmatically (a buying paradigm which in many cases has its own transparency issues), it’s important that clients (and their agencies) understand what they are buying and how their buys performed – in an accurate context.

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