TAIPEI, TAIWAN – Taiwan Hakuhodo Group, an integrated marketing company and innovation company based in Taipei, is pleased to announce the launch of a new optimization system for long-form TV commercials in Taiwan. Jointly developed with Hakuhodo DY Media Partners in Japan, this cutting-edge tool is designed to maximize advertising effectiveness for clients promoting multiple products by automatically optimizing product placement across various television programs.
In Taiwan, TV commercials are classified into short-form (40 seconds or less) and long-form (41 seconds or more). Short-form commercials primarily focus on maximizing reach, while long-form commercials are designed to enhance product understanding. The purchasing methods for these slots differ significantly: short-form commercials are bought based on Target Audience Rating Points (TARP), whereas long-form commercials are purchased through program-specific placements.
With a total of 250 television channels, including terrestrial and cable TV, Taiwan broadcasts thousands of programs each month. To assist clients in navigating this complex landscape, the newly developed tool analyzes past performance data and client-specific constraints to solve a combinatorial optimization problem. This allows for the optimal allocation of products to each program, maximizing order volume.
The collaboration with the data scientist team at Hakuhodo DY Media Partners, known as the AaaS Tech Lab, has been instrumental in this development. The AaaS Tech Lab specializes in analyzing and predicting media and content effectiveness using advanced algorithms, pioneering new approaches in planning and sales.
The results of implementing this optimization system have been promising. Clients utilizing the tool have reported an overall increase in order volume while successfully reducing acquisition costs. Notably, nearly every individual product has also experienced an increase in orders with lower acquisition costs.
Figure 1: Comparison of the total acquisition cost per product group before and after the introduction of the automatic optimization tool
Figure 2: Acquisition cost per product in the first month after the introduction of the automatic optimization tool
*Products included are those with comparable conditions before and after the tool implementation, making them suitable for comparison
Moving forward, Hakuhodo Taiwan Group will actively implement this service for clients utilizing long-form TV commercials in Taiwan. Through this optimization system, the group aims to maximize advertising effectiveness and further enhance business outcomes for its clients.
Taiwan Hakuhodo Group has consistently provided cutting-edge advertising solutions in collaboration with Hakuhodo and Hakuhodo DY Media Partners in Japan. The development of this long-form TVCM optimization system is part of these ongoing efforts, contributing to the realization of more effective advertising strategies.
Hakuhodo Group companies in Taiwan will continue to pursue further research and development to meet the evolving needs of their clients. As a trusted partner, they remain committed to driving growth in Taiwan’s advertising industry and supporting their clients’ success.
