Enabling Pay-for-Performance Business Model for Local TV

In today’s fast-evolving advertising ecosystem, the expectation of “pay for performance” has become the norm in digital platforms. However, Local TV’s traditional business model has struggled to align with this modern standard. Advertisers typically pay for all aired spots at the end of a billing cycle, regardless of any shortfall in audience delivery. This outdated approach not only complicates financial reporting but also creates operational inefficiencies for broadcasters and agencies alike.

The Challenge with the Traditional Model

In the existing framework, under-delivery in audience performance requires a cumbersome process of reconciliation. Agencies and stations must await posting reports to confirm any shortfall in impressions. These shortfalls, often tracked as liabilities in the form of Under-Delivery Weight, must then be carried forward to future campaigns at no additional charge. This process requires:

• Complex manual workflows to track liabilities.

• Enormous effort to monitor and compensate for liabilities in subsequent campaigns by offering Audience Deficiency Units (ADUs) at no additional charge 

• Quarterly reporting challenges, as ADU liabilities skew financial performance metrics for broadcasters.

This outdated system places an unnecessary burden on human resources and makes Local TV advertising less attractive in comparison to streamlined digital platforms.

SureWaves' Pay-for-Performance Solution

SureWaves Technology addresses these challenges head-on by introducing a transformative “Pay for Performance” model tailored for Local TV. With SureWaves, advertisers and agencies no longer have to endure the inefficiencies of audience shortfall reconciliation.

Key Features of SureWaves’ Solution:

1. Real-Time Audience Tracking: Advertisers and agencies gain 24/7 access to view posted and projected audience performance across multiple stations for their campaigns.

2. Automated ADU Management: SureWaves tracks audience performance daily, automatically delivering necessary ADUs, or crediting excess ADUs, within the campaign flight period to minimize under-delivery or over-delivery.

3. Accurate Billing: At the end of each billing period, the platform generates accurate reports based on actual audience delivery, enabling seamless billing settlements on a pay-for-performance basis.

4. Reduced Operational Burden: By automating audience tracking and liability management, the platform eliminates the complexity of manual workflows and streamlines financial reporting.

Ushering Local TV into the Digital Era

SureWaves’ Pay-for-Performance model brings Local TV advertising into the digital age by aligning with the expectations of advertisers who are accustomed to performance-based billing. By eliminating the need to track liabilities and simplifying financial settlements, SureWaves makes Local TV advertising more efficient, transparent, and competitive with digital platforms.

This innovation not only empowers advertisers to invest confidently in Local TV but also positions broadcasters as key players in a rapidly transforming advertising landscape.

With SureWaves, the future of Local TV advertising is simpler, smarter, and more aligned with today’s performance-driven world.