Home Analysis Advertising US Clypd Brings Advanced Audience Targeting To Linear TV, Eyes European Market

US Clypd Brings Advanced Audience Targeting To Linear TV, Eyes European Market

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US ad tech start-up Clypd is to open a UK office this summer, with a view to rolling out its sell-side programmatic offer to European TV sales houses.

Just over a year ago, the company announced it had raised $19.4m in its Series B funding round, led by German media giant RTL Group, bringing its total funding since launch in 2012 to around $31m.

The company’s co-founder and EVP of Business Development, Doug Hurd, says that while Clypd’s existing customers are in the USA, “we will be launching with some of the RTL companies in Europe in the next six months. I don’t think we’re really ready to say what markets, yet. Certainly, areas where RTL has a presence are logical places to start, but they’re not the only places.”

Clypd’s technology solution is aimed at TV sales departments, offering media owners two key components: workflow automation and data-driven decision-making. The latter is arguably the most innovative aspect of its proposition, since it allows owners of linear TV inventory to enhance their offer with advanced audience segments – providing the sort of targeting granularity to buyers of TV airtime that is currently only available on addressable platforms like BSkyB’s in the UK.

Clypd’s platform does this is by enhancing traditional TV audience data from measurement firms such as Nielsen and BARB with additional data-sets. This can be “panel data, it can be from set-top box data, it can be third-party data or all of the above,” notes Hurd.

Clypd’s platform then applies data analytics techniques to the mix, leveraging its platform and proprietary algorithms to find “those advanced segments that exist across linear inventory, effectively dressing up the inventory and exposing these advanced audiences to the buyers. So it becomes much more of an audience-based sale as opposed to a spot-based selling process.”

Hurd believes the ability to enhance linear TV inventory in this way is unique, and responds to a “huge growth” Clypd is seeing “in this notion of the advanced audience target.”

Hurd offers the example of a campaign targeting the motorcycle enthusiast segment. “Motorcycle enthusiasts may be defined as people that own motorcycles for more than five years,” suggests Hurd, “who live in suburban areas and have a household income of $100,000-plus, that are unmarried. Ultimately the segment is defined and agreed-upon by the buyer and seller. That’s certainly much more than an age/gender demographic target, and a good example of an advanced target we’re optimising against.”

Clypd’s response to a request for such a target from a TV buyer is a two-stage process. First, the system will crunch the numbers in the usual way, using the best approximation that can be afforded by traditional metrics such as Nielsen’s age/gender currency – and provide the traditional guarantee to meet the buyer’s campaign targets, based on a defined number of impressions, at a certain price – “we don’t see that changing any time soon,” says Hurd. This first stage results in a proposed schedule of spots across various linear TV channels over a certain period of time.

With this as a benchmark, the system then recalculates an optimised schedule for the advanced audience target, this time leveraging the extra data-sets. “If it’s doing its job well, then you would see many more impressions after our software runs, finding inventory that over-indexes against that advanced target,” says Hurd.

This process not only guarantees that the buyer will hit its conventional age/gender demographic targets, argues Hurd, but “gives me, the media owner, confidence that I can find my inventory that over-indexes against that advanced target.” This is not only useful to the seller, “but it’s really useful for the buyer – because they can now feel more confident in the campaign getting the desired audience they’re trying to reach.”

In one case-study provided by Hurd, where the requested advanced audience segment was ‘heavy beer-drinkers’, a media owner was able to deliver twice as many impressions on that specific target for the same budget by using Clypd’s inventory optimisation capabilities.

Hurd says one of the other advantages of the platform is that it is able to optimise within complex campaign constraints. “So if there are certain network and daypart mixes that have to be in place – perhaps the buyer is interested in the advanced audience buy, but they need the confidence that 50% the campaign will run during prime-time – that can be a constraint that’s applied to the optimiser,” explains Hurd.

Looking to Europe, Hurd says that likely markets for its product here will be those areas “that have established datasets that are available that we can leverage – and where the TV market in general has an interest in this notion of advanced audience selling. […] We don’t think that the traditional processes are going away, but we do know that this new way of data-driven buying and selling is here to stay.”

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