A Review of the Effectiveness of Addressable TV Advertising

Addressable tv ads leverage data to reach target audience.

While it is a relatively new phenomenon, addressable TV advertising goes beyond linear TV ads. It enables brands to reach a specific target audience. Instead of targeting all viewers, an ad is created to target different households in linear TV programming. In this article, we will examine how addressable TV advertising works and how you can leverage it to grow your brand.

Addressable TV Definition

So, what is addressable TV advertising? This is a targeted advertising method in which advertisers customize an ad to a particular target audience. The advertising method makes use of digital technology and sophisticated data to put audiences in different segments depending on various factors such as:

  •  Demography
  • Behavior
  • geographical location. 

The aim is to deliver personalized and relevant ads to each viewer. This ensures that you have linear TV advertising campaigns that are more efficient and effective. Therefore, it’s one of the creative advertisement methods for small businesses.

 While the advertising method isn’t a replacement for linear TV, it offers a great way for brands to reach their target audience in linear and OTT TV.  In the next few years, the number of platforms using addressable advertising methods is predicted to rise. 

How Addressable TV Advertising Works

Advanced  TV advertising uses data analysis and the latest technology to deliver specific ads for specific audience groups. Unlike traditional TV, where brands choose a program or network to advertise on, in addressable TV advertising, they choose the audience they would like to see their ads. It leverages data to determine the best ads to show the customers.

Benefits of Addressable TV Advertising

There are several reasons why brands should consider using addressable ads. These include:

Great  audience targeting

We have already noted how addressable TV advertising helps with audience targeting. This is, therefore, the main benefit, as brands can deliver messages tailored to specific audiences in certain demographic areas. This can mean a higher ROI as brands focus on reaching viewers likely to convert.

Lots of detailed data

AddressableTV ads also provide important data on ad performance and viewer engagement. With such data-driven ads, advertisers can make more informed decisions. They can also optimize campaigns in real-time to provide better results. An example of a brand that uses data to determine ad spend is General Mill.

Efficient marketing budgets

Another reason addressable TV ads are growing in popularity is that they reduce ad spend wastage. When brands are able to deliver personalised ads, they can have more efficient budgets. 

Not only will this reduce fatigue among viewers, but it will provide them with a better viewing experience. Undoubtedly, addressable TV advertising has changed the face of linear TV advertising. This is mostly because it is more driven by personalized content.

 How To Successfully  Implement Addressable TV Advertising

To ensure that your addressable TV advertising is successful, follow the following steps:

Determine your addressable ad objective

As with any other advertising method, your first step should be determining your goal. This will show you whether addressable TV advertising is the best form of advertising. Some of the goals you can have are:

  • Attract potential leads.
  • Cross-sell
  • Up-sell

You will also need to determine your maximum cost per acquisition.

Determine your target audience.

 Gather data from various sources, such as cable or set-top TV boxes. Some of the information you should collect includes demographics, personal interests, and buying habits. The collected data can include programs watched, owned devices, seats visited, and customers’ cross-gadget behaviors. You can then use this data to build household profiles.

Addressable television ads target a particular audience.

Other data to collect should answer the question of who is your target demographic audience. Do you have the names and addresses of the audience you want to reach? What channels do they watch, and what are their preferred gadgets? If you have no target audience you are trying to reach, you can leverage third-party data. You can use the data to segment the audience into different categories, such as age, gender, location, viewing habits, and income levels.

Consider your creative assets.

 Now that you understand the different segments, you can start creating ads that appeal to those audiences. Consider the ads you will use to reach your target audience. When creating ads, there are several factors you need to consider:

  • The ads should have an aspect ratio of 16:9
  • Videos should have a minimum bitrate of 5000 kbps
  • Ads should be  15 and 30 seconds long
  • Ads should have a CTA.

Plan your advertising campaign.

When creating an advertising campaign, you should consider the audience size, duration, and frequency of ads. However, this will also depend on your chosen platform.

Airing of ads.

 The next step is to broadcast these ads to the relevant audiences. The system determines the most relevant ad when a viewer turns on their TV. The ad is shown to them either in real-time or can be scheduled.

You must send your ad to the multiple system operator(MSO) for targeting. This refers to the cable operator you will be advertising your ad through. Some of the most common cable operators offering addressable ads are:

  • CableVision
  • Comcast
  • Charter
  • Dish
  • Direct TV or AT&T AdWords

With these operators, you can target a collective audience of up to 50 million people with programmatic TV advertising.

Result tracking

You need to track whether the ad is working or not. You can then use this feedback to refine your campaigns for the next ads. Giving the viewers 30 days after a campaign has ended is advisable to give them enough time to act.

By following the above steps, you can ensure effective addressable TV advertising. This can especially be a good and creative advertising idea for a realtor business.

Addressable ads offer better targeting.

In  Conclusion

The advertising landscape is changing, with brands opting for advertising methods that provide them with better targeting options. One of the most effective ways is through addressable TV ads. With the above steps, it’s possible to get the most out of this form of advertising.  This is especially so when you combine it with dynamic keyword insertion for better results.

Benjamin is a writer with over ten years of experience in the content writing field. He holds a Bachelor's degree in  Journalism from Strathmore University. He writes on various niches such as product reviews, self-improvement, and making mone online. You can find him curled on his couch with a self-improvement book when he is not blogging.