Hershey’s, the iconic chocolate and candy maker, is going all in on Connected TV (CTV) and OTT (Over the Top), planning to increase its ad spending by 9x in 2020 vs its 2019. To do so it is partnering with SpotX as one of its media buying and demand facilitation partners. To learn more about Hershey’s 2020 CTV/OTT strategy I interviewed Vinny Rinaldi, Head of Addressable Media and Technology for Hershey’s and Cassidy Diamond, VP, Brand Partnerships for SpotX. Following is a slightly edited transcript.
VideoNuze: Hershey’s is going “all in” on Over-the-Top (OTT) and Connected TV (CTV) advertising, intending to grow spending in these categories by 9x in 2020, compared to 2019. Why is Hershey’s making this big shift?
In his keynote interview at the recent Video Ad Summit, Charlie Chappell, Hershey’s head of global integrated media, shared lots of great insights on how the company is adapting to the fast-changing video landscape. Interviewed by MediaLink’s Matt Spiegel, Charlie explained that until just a few years ago, Hershey’s spend virtually all of its ad dollars on TV, but now it is diversifying to capitalize on new opportunities.
Charlie talks about how reach is still the most important objective and ROI is measured by actual product sales. But that metric isn’t fully formed yet for many digital outlets, so the company is improvising, for now, how to measure success with video and social platforms as it moves beyond basic age and gender.
Importantly, Charlie discusses the impact of video and social on the company’s brand leaders and how the company is organizing itself to succeed. Charlie also describes how creative isn’t optimized solely for TV ads any longer, but needs to work across all platforms.
These are just a few of the highlights of the wide-ranging interview. Watch the interview (32 minutes, 15 seconds) for lots more.