Addressable TV Advertising: A New Hope for Marketers

It’s no wonder that TV as a most adapted and powerful media for advertising with broad reach even now. 

Introduction of Smart TV is the added advantage to the advertisers to reach their audience even in this era. 

Advertisers are adopting new strategies for how TV advertising is planned, targeted, bought and measured. 

TV ads still considered as the best channel that offers brands with massive reach. TV ads add more impact on the audience at grabbing attention, connecting with customers and storytelling. 

Multichannel video programming distributor (MVPD) portraying over 70 million homes have adopted addressable advertising and are hoped to deploy systems within the upcoming two years.

Development in TV advertising shifted the expert marketers to the advanced way of targeting that is addressable targeting which is possible in the past only with direct mail and digital.

So What is Addressable TV Advertising?

Like you get an ad while browsing on the internet, or a mail that arrives in your mailbox, 

TV advertising can be customized to your household is called addressable advertising. It’s very simple, 

Addressable TV advertising empowers advertisers to segment and targets their audience more specifically based on their first, second, and third-party data and displays various ads or ad pods (groups of ads) during a common program or navigation screen on a real-time basis. 

With the help of advancement in digital advertising technologies, advertisers can target the audience based on their unique identifiers such as gender, income, the interest of purchase, self-selected individual household levels. Segmentation of the audience and delivery of the ad also considers behavioural, geographic, and demographic factors. 

TV operators throughout the globe now have the technology to enable the household targeting like satellite, cable, and Internet Protocol Television (IPTV) delivery systems and Set-Top-Boxes (STBs) and other connected devices. 

And because addressable advertising targeting the person, not the program the right ad reaches the right audience irrespective of the program, format, time or device.

Difference Between Addressable TV and Programmatic TV

Programmatic TV is the automatic process to enable audience-based TV advertising using a programmatic platform. Programmatic TV advertising is the advancement of the traditional way of advertising which depends on GRPs to the target audience for their ads. 

Addressable advertising is a subset of programmatic TV advertising; they both practice programmatic technology and use Set-Top-Box data to target their audience. 

Addressable TV advertising makes use of programmatic technology and high-level audience segmentation to display explicit video ads at a household base in real-time. Whereas, in Programmatic TV advertising advertisers have to select the inventory, preselect availabilities, have to analyze their targeted audience, and extend the targeted parameters based on a prediction of who will be watching those ads for better results.

In Addressable TV advertising, advertisers no need for prior selection of spots because it runs ad based on real-time data; it selects the most appropriate ads. In this way, advertisers ads will reach only to their targeted household.

The segmentation of the audience in addressable TV advertising is based on a wider set of attributes offered by STBs and specialized data providers for instance – a family with children, a couple with no children with an income of some $25,000, kids with zero to six years old, people with interest to buy a car, loyal customers across multiple consumer brands, segment defined by historical purchase behaviour, and similar other parameters. 

In programmatic TV advertising, programs or ad spots that have an audience with a probable match are purchased and displayed using programmatic technology. Here there are chances of ads get even display to the audience who tune to that programs beyond the targeted audience.

Why addressable TV is important in the marketing ecosystem?

Addressable TV advertising crossed the boundaries of the traditional, manual ad buys and focused more on the relevancy of the ad to the audience and parallelly measure the impact of the ad.

In addressable TV advertising, the advertisers can target the audience using their first, second and third-party data and household level on a real-time basis, which reduces the amount spent on an irrelevant audience by purchasing ad spots beyond their targeted audience.

The Adage states that ”Addressable TV advertising more probably offers an opportunity to reach the targeted audience in scale.“ Because of the capability of addressable TV advertising to target the customized audience on a real-time basis. 

It enhances the targeting efforts and helps to reach the custom audience with added creativity in ads. 

Addressable TV advertising has the option to target audience on a granular level that can help to get deeper insights on the overall performance of the ad. 

SmartClipExperianInvidiMedicx Media Solutions and others are the best addressable Tv providers.

How it’s important, with facts and figures.

Addressable TV advertising results you can observe in site activity, improvement in brand image and sales. 

A survey conducted by VAB– which represents most of the multichannel video programming publishers and big national TV in its report called ‘address for success’ determined that addressable TV advertising is still a new tool for marketers.

40% of ad buyers and marketers said they are making use of addressable TV advertising as their ad platform, and 62% reported addressable TV advertising is one of the segments of their ad purchase. They are planning to increase soon. 

71% of marketers are spending on addressable TV advertising for less than a year. The survey also determined that 15% of advertisers implemented addressable TV regularly and 35 % have trailing with it. 

Additionally, it added in his report Addressable TV advertising spend is expected to grow $3.3 billion by 2020, raise from $2.1 billion in 2018.

The report covered the analysis of case studies from several MVPDs and concluded that addressable Tv advertising campaign offered higher ad relevance, enhanced ROI and precision targeting.

Addressable TV advertising benefits

Let’s concentrate on the individual-level benefits of Addressable TV advertising.

Audience win

In addressable TV advertising, the audience will get ads based on their interests and which are relevant to them because it targets ads based on household profiles on a real-time basis. In traditional advertising, it’s a general broadcaster method of ad displaying where the audience will get most of the ads which are irrelevant to them. While In addressable Tv advertising, it shows that TV networks, OTT providers, VOD services concern about their customers and deliver what matters to them most. For example, in the case of addressable TV advertising, if in a house they have no children, then they will not get the Cereal, Kinder Joy, Mamy Poko Pants, Johnson & Johnson products ads or other ads.  

Advertisers win

What advertisers needs from displaying their ads to the audience? Obviously, they want to create their brand presence and more sales it will happen only when they display their ads to the individual who is interested in their product or services. 

In addressable TV advertising, advertisers have the option to target audience, not the program which saves your ad display showing to an irrelevant audience.

Addressable TV advertising provided them with the platform to reach the right audience at the right time. 

Advertisers can easily manage the delivery of your message based on frequency, separation, and reach to decrease the viewer exhausted. 

Personalize messaging and contrast outcomes to make known the upcoming strategies and quickly adapt to new opportunities for messages. 

Advertisers can monitor the effectiveness across platforms and generate messages based on the specific devices to drive engagement.

Even it helps the advertisers to set their ad performance goals, measure and implement the changes accordingly. 

The advertisers will get the complete report of their campaign like- evaluation of views/clicks/interactions with content, actions of viewers, analysis of behaviour, the performance of the campaign on all platforms which helps to enhance engagement by creating content specific to the targeted audience and devices. 

The technology permits marketers to track the same users from their TV to smartphones and target them separately. 

Conclusion :

The number of users for the smart TV is increasing at a rapid rate, and it’s a great advantage for the advertisers to take this as an opportunity to target the audience on a granular level precision that too on the programmatic platform on a real-time basis. 

The addressable TV permits both publishers and advertisers to use programmatic platforms which have ample of benefits to target, measure and analyze and implement the changes based on the targeted audience.

As per the statistics, addressable ads have reached to 65 million US households and expect to increase their number in the future. Moreover, it also observed that the rise of addressable Tv advertising is lifted around 50% since 2016.

                    Source: Media post

It is transforming the television advertising, delivering the viewer the satisfied and more relevant ads on their TV and allowing marketers to target their audience more precisely.  

This solution reduces the wastage of impressions while producing measurable results overall, greatly enhancing the value of advertising to viewers and advertisers. In fact, the hundreds of billions of addressable advertising impressions delivered in the past year alone.

Now you have an appealing opportunity to get experience in addressable advertising before your competitors get to know.

About Syeda Khadeer Sultana

My urge to learn something new and passionate attitude changed my interest in being a professional content writer. My constant efforts and experience in the marketing field have built a first-rate conception of Martech, Adtech and digital marketing in me. Currently, I'm putting my efforts in delivering content on advanced marketing & technology techniques to confer a benefit to entrepreneurs.

1 thought on “Addressable TV Advertising: A New Hope for Marketers”

  1. Hi, the Addressable TV Advertising: A New Hope for Marketers article it is well written and is very useful.


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