TV Analytics

Is addressable TV advertising the future of traditional marketing?

Written by Tony Loxton
Aug 31

As technology evolves, so too does the marketer’s arsenal of tools and tricks for making their efforts that much more effective.

The latest buzzword making the rounds with regards to TV advertising purports to be every marketer’s dream: addressable TV advertising – a way to hyper-segment tv campaigns, down to individual viewers.

Addressable TV advertising is getting a lot of air time lately, due to the fact that it seemingly solves one of the most problematic issues of the medium: talking to the right audience.

Gartner defines the practice as: “technologies [that] enable advertisers to selectively segment TV audiences and serve different ads or ad pods (groups of ads) within a common program or navigation screen.” In other words, you’re able to directly address the people you want to, and only the people you want to. This segmentation can be implemented using several criteria, including demographics, geographics, behavioural indicators and even individual households who have opted in. In addition, this can be rendered via channels other than traditional networks. Marketers can use addressable TV advertising regardless of whether they’re airing their campaigns on cable, satellite, Internet Protocol television or set-top boxes.

One of the biggest challenges marketers face is having to spend a considerable amount of money on a TV campaign, knowing that they may very well be broadcasting to the wrong audience.

While TV advertising continues to be the most powerful means of marketing, it comes at a price. And when you’re investing a substantial budget, you need to know that your money is actually an investment, instead of a massive waste of capital. Addressable TV advertising is so appealing because it can help you avoid targeting the wrong audience and connect to the market you want to target. That said, the practice isn’t perfect just yet. As this article from AdExchanger points out, “this requires a good understanding of who the 'wrong people' are.” And as such, requires an equally thorough understanding of who the right people are in the first place.

As with any new technology, addressable TV advertising still has a way to go before it’s a reliable addition to your marketing arsenal.

Any new technology that’s not yet gained mass-market approval is expensive when it first launches. (Remember the first iPhone, anyone?) As is stands, addressable TV advertising doesn’t come cheap, and if you’re targeting a very specific niche, it becomes even more pricey. Couple this with the fact that not all cable or television networks have implemented this technology, as it requires both a hefty investment in new technological infrastructure and buy-in from stakeholders.

In order to make the most out of addressable TV advertising, marketers need to know as much as they can about their target market.

This may sound obvious (and I hope it does), but many marketers still seem to have a limited understanding of who their core target market actually is. Addressable TV advertising can work – and work well – but only if you’re measuring the results of your campaign’s TV advertising analytics.   

In theory, addressable TV advertising sounds like a dream come true. Whether or not this turns out to be the case is yet to be decided.

One thing’s for sure, whether you take the leap and add this to your TV advertising tool kit or decide to stick with your current strategy, you cannot afford to leave your campaigns unmeasured. The good news: this doesn’t need to be a mammoth undertaking, nor does it require the cerebral power of a statistician. Blix TV is easy to use, simple to implement and gives you an in-depth, accurate view of how your TV advertising campaigns are faring. Find out more about Blix TV today.

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