Addressable TV is, in essence, any TV set connected to the internet that allows watching video-on-demand! This holds significant implications for advertisers, and there’s no wonder why new businesses of all sizes are flocking to the TV space in order to compete with digital giants. However, securing a healthy share of digital ad revenue is harder than it might seem. Competition is rife, and distinguishing yourself is even harder.
Here’s what addressable TV really means for advertisers.
Forget About One-way Traffic
TV advertisements are moving from the constraints of broadcasting into the open reach of a served world. With addressable TV ad spend increasing year on year, over half of UK households now have an addressable TV in their possession. Given the recent pandemic, streaming has never been so lucrative: now, advertisers must take advantage of this!
Although advertisers now need to adapt and overcome the gap between broadcast and video-on-demand, they face more data, more technology and more options to drive their marketing further.
Take your Reach Further
Talking about reach, addressable TV means advertisers can now extend their marketing so much further. Expand across linear and non-linear platforms to take your reach above and beyond; research shows that, between VOD and linear content, customers ultimately want a breadth of entertaining content.
Potential customers now stream across several devices, largely interconnected, and want to view television in the palm of their hand. Advertisers can take advantage of this by increasing where their own content is shown, and whether this is transferable across multiple devices.
The Expense of Addressable TV
There is some confusion as to the high cost of addressable TV advertising, and this confusion has advertisers concerned.
But, addressable TV ads don’t have to be – and really aren’t – substantially more expensive than linear formats. Interestingly, there are cost benefits to be had when, as soon as you begin hitting diminishing returns with linear platforms, switching to VOD content.
Balance your investment in both formats, and factor in your incremental reach across all platforms; addressable advertising might turn out more cost-effective than first thought!
Build your Brand and Enjoy Sales Activation
Advertisers need to understand that addressable advertising doesn’t have to be one or the other: you can build your brand (and a name for yourself!) in the long-term whilst reaping the short-term benefits of boosted, rising sales. Both are as important as each other.
Through addressable advertising, advertisers can deliver a mass marketing campaign that is both personal and directed to a chosen demographic. Advertisements are most effective when individually relevant, and based on the data that addressable TV easily provides.
Addressable is Accessible
Smaller, ‘homegrown’ brands might have never previously considered TV advertisement until the rise of addressable television. Advertisers need to seize the opportunity to get niche brands out there, and into the minds of potential consumers. In the here and now, advertisers have the opportunity to geo-target potential clients, underpinned by third-party data, and easily outperform their bigger competitors.
Begin speaking to your core audience in the most effective, accessible way possible.
Cover photo credit: Pixabay