The Changing Television Landscape
Technology now exists to seamlessly integrate identified audiences (who have voluntarily declared intent to known data sources) with the content that these audiences consume. However, there are many challenges to be overcome both on the data as well the business side. The data available on households which consume TV (whether linear or through streaming options) is patchy at best. There are different techniques which data marketers deploy to make the data closer to reality. They deploy probabilistic and stochastic methods to project data audiences. However, with these techniques and such fragmented, time-shifted audiences, advertisers do not always reach the right viewers with the right message.
Addressable Advertising is the Need of the Hour!
One of the ‘buzzwords’ in recent days in the media world has been addressable advertising. Addressable advertising is a name given to personalized advertising or messaging sent to an identifiable audience segment referred to as addressable. Addressable advertising allows marketers to reach more specific audiences with greater creative flexibility, deep insights, and reliable ROI data. Moreover, with much more granular TV attribution and measurement, advertisers can understand the real performance of their ad – including engagement, brand lift, and conversions.
The addressable segment is identified by specific characteristics that could be demographic or behavior oriented. It is coupled with the ability to deliver campaigns tailored to the desired demographic and behavior intent. Among all advertising’s holy grails, addressable TV is often held out as the holiest of them. The difference now as compared to some two years ago is that the inventory that was made available for addressable is hugely expanding. Earlier, there were only two minutes out of an hour’s programming was available for the MSO’s for addressable targeting. Now with the significant MSO’s owning much of the content as well courtesy their big-ticket acquisitions, they are continuously working to expand their addressable inventories. Not only this, all VOD available on STB or streaming box options is also identified as addressable.
Final Thoughts:
The business of selling inventory needs to change as well, to offer scale to the buyers as traditional media space selling does. Advertisers need to shift towards buying audiences than being media space. Addressable is an excellent option in this space as it offers exceptional value regarding money spent on buying audiences as almost no leakage takes place. The delivery is 100% to the desired audience as long as the data is correct. The hit rate in traditional advertising is supposed to be not more than 10%. This means that there is ten times more leeway that the broadcaster or owner of the inventory gets regarding addressable.
Addressable advertising is the future of TV advertising. It might take a while more to become completely addressable, but the road is becoming more evident every day.
How Tavant helps organizations deliver intelligent interactions with their customers?
Tavant has been very actively involved in media measurement technologies for more than 12 years. Tavant has been working actively on addressable TV advertising with its clients who are in the data and broadcasting network space. Tavant also has a solution accelerator around media planning, execution, and measurement, which enables buying of the media space for the addressable audience.
Ready to start talking one to one? Connect with us today at [email protected] to strategize your next addressable TV campaign.
