SPECTRUM REACH ANNOUNCES ROLLOUT OF NEW TOOL TO BOOST AD CAMPAIGNS' EFFECTIVENESS

Rhea-AI Summary

Spectrum Reach, Charter Communications' advertising arm, has announced the full rollout of its Audience Reach Optimizer (ARO) tool. ARO leverages data insights to enhance advertisers' campaign effectiveness through household-level targeting across TV and streaming platforms.

Following a successful pilot in 2024 with over 5,600 reports, ARO combines broadcast and cable ad log data from MediaRadar and Spectrum's campaign orders. The tool revealed that over 80% of quarterly broadcast-only campaigns underperformed in reaching households, while cable advertising showed increased engagement.

A case study featuring Matter Brothers furniture store demonstrated ARO's effectiveness. The tool discovered that their target customers spent 70% of their time watching cable networks rather than local broadcast channels. After adjusting their strategy, Matter Brothers' sales exceeded industry benchmarks by 10%.

ARO distinguishes itself by tracking ad views on both traditional TV and the Spectrum TV App, which is the most-watched streaming service in the U.S. based on hours-per-household metrics.

Positive

• Launch of new data-driven advertising tool (ARO) enhancing campaign effectiveness
• Demonstrated success with Matter Brothers case study showing 10% above-benchmark sales performance
• Unique competitive advantage through exclusive data tracking across traditional TV and Spectrum TV App
• Evidence of superior cable advertising performance over broadcast-only campaigns

Negative

• None.

Insights

Financial Analyst

Charter Communications' launch of the Audience Reach Optimizer (ARO) represents a strategic move to enhance its advertising revenue stream amid evolving media consumption patterns. The full rollout follows successful pilot testing that generated over 5,600 reports, indicating significant advertiser interest in the platform.

What makes this tool potentially valuable is its ability to leverage Charter's unique first-party data across both traditional cable and streaming platforms. The company's finding that 80% of advertisers' broadcast-only campaigns underdelivered to target households provides a compelling case for shifting ad dollars to Charter's cable networks—directly benefiting their advertising business unit.

The Matter Brothers case study demonstrates the tool's practical application: after discovering their target customers spent 70% of viewing time on cable versus broadcast channels, they shifted spending accordingly and exceeded industry sales benchmarks by over 10%. This success story serves as a powerful selling point to other advertisers.

However, the announcement lacks specific financial projections or metrics regarding expected adoption rates or revenue impact. Charter doesn't disclose what percentage of its overall revenue comes from advertising versus its core subscription business, making it difficult to assess how material this product launch will be to company-wide performance. While ARO strengthens Charter's advertising value proposition in an increasingly competitive media landscape, investors should view this as one component of a broader strategy to diversify revenue streams amid ongoing cord-cutting pressures.

Spectrum's Audience Reach Optimizer (ARO) Provides Advertisers with Even More
Comprehensive, Data-Driven Insights

NEW YORK, March 18, 2025 /PRNewswire/ -- Spectrum Reach, the advertising sales business of Charter Communications, today announced the full-market rollout of its newest planning tool, Audience Reach Optimizer (ARO), designed to boost the effectiveness and efficiency of advertisers' campaigns, delivering their TV ads to their intended audience.

ARO leverages Spectrum Reach's unique data insights in a privacy-focused way to simplify the process for advertisers to target audiences more efficiently at the household level. The innovative new planning tool identifies new opportunities for multiscreen engagement across traditional TV and streaming platforms, maximizing campaign impact and audience engagement.

"We are delivering solutions that make it easier for advertisers in today's competitive advertising landscape," said Jason Brown, Senior Vice President, Chief Revenue Officer for Spectrum Reach. "By providing unique, data-driven insights on campaign reach and frequency through tools like ARO, we empower advertisers to fine-tune their targeting strategies, optimize media spend and maximize audience engagement with information they cannot access elsewhere. Ultimately, this insight drives better business outcomes for our clients."

Spectrum Reach began piloting ARO in key markets in 2024 and has since run over 5,600 reports providing advertisers with full access to performance data. ARO sources its broadcast ad log data from Spectrum Reach partner MediaRadar, now including the data and capabilities of Vivvix, and its cable ad log data from Spectrum's campaign orders. By combining its unique broadcast and cable ad log data sources at scale, ARO gives Spectrum Reach's clients a broader view of their campaigns, helping them to identify more targeted opportunities to connect with potential customers. For example, Spectrum Reach found in a sample that more than 80% of advertisers' quarterly broadcast-only campaigns underdelivered to households in the overall market, whereas shifting their spend to cable increased audience engagement.

That was the case for Matter Brothers, a high-end furniture store chain in Tampa, Florida. By using ARO, Matter learned that their intended customers were spending more than 70% of their time watching cable networks as opposed to local broadcast channels, where they had been heavily investing in advertising. With this insight, Matter adjusted their TV spending, leading to sales that exceeded the furniture industry benchmark by more than 10%.

"When we first started working with Spectrum Reach, they identified inefficiencies in our ad campaigns," said Kim Dominguez, Marketing Director for Matter Brothers. "With ARO, we found that more than 60% of our local broadcast investment was targeting only 8% of sales. To address this, we shifted our ad budget from local broadcast to cable to better connect with our intended audience. We are already seeing the benefits through improved results and increased audience engagement."

ARO includes several features that differentiate it from other ad planning tools on the market. For example, it uses well-defined methodologies and transparent definitions, allowing advertisers to see exactly how their ads are performing and make better decisions. ARO also provides exclusive data that no other planning tool offers by tracking ad views on both traditional TV and the Spectrum TV App, the most watched streaming service in the U.S. on an hours-per-household basis.* This gives advertisers the most relevant and valuable information for their campaigns.

More information about Spectrum Reach is available at www.spectrumreach.com.

*Comscore CTV Intelligence Report 2022 through December 2024, U.S. Statement based on measurement of Average Hours Per HH per Month.

About Spectrum Reach
Spectrum Reach^®, the advertising sales business of Charter Communications, Inc. (NASDAQ:CHTR), provides custom advertising solutions for local, regional and national clients. Operating in 36 states and 91 markets, Spectrum Reach creates scalable advertising and marketing services driven by aggregated and de-identified data insights and award-winning creative services. Spectrum Reach helps businesses of all sizes reach anyone, anywhere, on any screen. Additional information about Spectrum Reach can be found at https://www.spectrumreach.com.

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SOURCE Charter Communications, Inc.

FAQ

What results did Matter Brothers achieve using Spectrum Reach's ARO tool?

After shifting ad spending from broadcast to cable based on ARO insights, Matter Brothers exceeded furniture industry sales benchmarks by over 10%.

How many reports has Spectrum Reach's ARO tool generated since its pilot in 2024?

ARO has generated over 5,600 reports since its pilot launch in 2024.

What percentage of broadcast-only campaigns underdelivered according to ARO data?

More than 80% of advertisers' quarterly broadcast-only campaigns underdelivered to households in the overall market.

How does Spectrum Reach's ARO tool track ad performance?

ARO tracks ad views across both traditional TV and the Spectrum TV App, using data from MediaRadar for broadcast logs and Spectrum's campaign orders for cable logs.