Addressable TV brings brands one step closer to consumers in that it allows marketers to deliver ads to a tailored audience watching linear TV programs.
In the past, advertising was much simpler; brands ran ads in between television programs, and the audience watched the ads without being able to skip, pause, or record for later. There was no variety of ads in terms of demographic, and everyone in the same location basically watched the same thing at the same time.
Now, however, ads can be targeted to not only specific individuals, but also based on the entire household. When we talk about the types of TV advertising, there are addressable TV, over-the-top, connected TV, and more. But let’s talk more about addressable television.
What is Addressable TV?
Addressable TV is an advertising method that allows brands to show different ads to various households during TV programming. These ads use first and third-party data to gather information on what the household is interested in. For example, an ad for strollers and baby products can be delivered to a household who has just welcomed a baby. Your neighbor who already has slightly older children, on the other hand, could be served an ad displaying the many benefits of investing in children’s bicycles and scooters. This is how well addressable TV ads know their consumers.
Addressable TV delivers specific product messages to specific audiences and allows brands to reach new audiences on more platforms, thereby boosting sales and performance. Addressable TV uses research and granular data to give relevant data to the right audience. With its data-driven nature, there is faster feedback, and advertisers enjoy more flexibility in terms of optimizing campaigns accordingly.
Linear TV is just the advertising term for traditional television. Any cable, satellite, or internet subscription that is shown on a schedule through a cable box or antenna is considered linear. Linear TV ads run on this kind of television are not targeted. Everybody within a specific geographical zone views the same ads broadcast to the masses.
Connected TV (CTV) does not include broadcast to mobile devices or personal televisions; it is restricted to just television sets. CTV is rated as one of the best methods of targeted video advertising because it allows marketers to collect more quality data, and marketers can take advantage of the wider screens television offers to provide more engaging ads. CTV also includes device and household-specific ad targeting.
The major difference between OTT and CTV is that while connected TV is limited to just television sets, OTT relates to any targeted video played across mobile phones, computers, connected TVs, and gaming consoles. This includes the hundreds of streaming platforms and apps available to customers and is one of the best advertising opportunities. OTT gained its popularity as viewers grew tired of watching programmed content via cable connections or satellite services, and switched to “cord-cutting”. Popular examples of OTT platforms are Netflix, HBO Now, Amazon Video, and SlingTV.
Difference between Addressable TV Advertising, CTV, and OTT Advertising
Addressable Linear TV advertising is a way to deliver specified ad campaigns to specified households via set-top boxes. On the other hand, over-the-top content is consumed through the internet; allowing ads to pop up on both connected TV and personal computers, mobile phones, and other devices.
The major difference between these forms of advertising is that OTT ads and CTV ads are consumed via internet-enabled devices such as connected TV, Hulu, Netflix, and Disney+, while addressable TV ads are sent via a set-top box.
How Does Addressable TV Work?
Addressable TV does not work the same way traditional TV advertising does. Rather than sending out ads based on the program or broadcast you wish to place your advert on, you choose the household which is more ideal for your brand. You can target your audience based on more personal data, and everything from viewing habits to demographics and viewing location. These ads are then delivered to your specified households.
Addressable TV runs primarily on consumer data such a frequented websites, device types, frequently watched programs, and general behavior. Marketers use these collected data points to build household profiles and distribute them to OTT providers, cable operators and advertisers.
Advertising on Addressable TV
You need a solid marketing strategy before plunging into the world of addressable TV advertising.
The first step to building a solid workable strategy is by establishing your objectives. Once you analyze your goals, you can determine if addressable TV is the best fit for your brand. Do you wish to attract more leads, cross-sell, or something else?
Define Your Audience
What is the demographic of your ideal viewer? Gather data on the names and location of your target audience, as well as what kind of devices they use and what they watch the most. If you have trouble with defining your target audience, you can use third-party data providers.
Plan Your Campaign
Your campaign should be dependent on the duration of your ads as well as frequency and size of your audience. The platform you choose will also determine what kind of campaign you run; for example, some platforms offer more detailed targeting which include data on audience location, demographic, device, and browser type.
Once you have successfully run your addressable TV campaigns, you need to see how well the ads are performing. Are they underperforming or exceeding expectation? The performance will determine how you structure and plan your next ads, and allow you make any necessary adjustments before broadcasting. To fully test how well your ads are doing, it is usually best to give a trial period of at least 30 days.
So, are brands better off abandoning mass-market TV campaigns for addressable TV? The truth is that there is nothing stopping you from doing both. Addressable TV provides opportunities for marketers to flex their advertising muscles and drive consumer spend. There is no doubt that addressable TV provides opportunities for innovation, and more advertisers will be hopping aboard the train to explore what this advertising style can offer them.