People don’t watch the TV anymore, emphasis on the. With viewing hours down and broadcast prices up, advertisers are continually looking for new ways to reach the scalable audience that television traditionally provided, all while mitigating waste and gaining business insights and data around business objective drivers.
Digital advertisers have been touting the power of centralizing their campaigns around behavioral, shopping, loyalty, and demographic data to create custom segments that are more likely to be in a target audience. This could be for a specific brand or product line, but digital often lacks the large scale that traditional broadcast can provide. Brand marketers and digital advertisers have become so accustomed to making decisions based on attribution data that when modern digital advertisers look at TV, they tend to scoff at the lack of attribution or data involved in the process.
Wouldn’t it be great if you could build a TV audience the same way you are used to building a digital display audience; getting the impression, engagement, click, lead, sales, and revenue data you see in digital campaigns? How about being able to build sequenced messaging and retargeting campaigns from a scaled TV audience? Well, now you can.
Enter Addressable TV.
What is Addressable TV
Addressable TV uses data (1st or 3rd party) to reach your targeted audience and eliminate wasted impressions. It can be executed using Households (Set top Box), Cable Zone (Local Cable markets), Mobile (Cellphones & Tablets), and Connected TV (OTT devices). The benefit of Addressable is being able to tie business outcome data to TV exposure data to determine the incremental lift.
Extend your data-driven digital profiles
As digital advertisers build customer segment profiles, they become comfortable utilizing multiple data providers to get pertinent information about their customers. Are they in the market for a new vehicle? How do they consume media? What behaviors are driving their decisioning? Are they within our demographic? Are they a member of a loyalty program? What products are they buying at the grocery store?
More importantly, how can they use that cornucopia of readily available consumer data to better target people on television?
With addressable television, advertisers are building segments the same way, then taking audience segments and matching them to households, cable TV zones, devices, or connected TV sets that are used by people who fit those targeting parameters.
What are addressable inventory segments?
To be an addressable capable household, the household must have a HD/DVR Set Top Box and have one of the cable/satellite operators who have enabled the tech. Currently this includes Dish, Directv, Comcast, Altice (formerly Cablevision), Oath (Verizon FIOS), and Spectrum. There are currently ~60MM households available for addressable insertion.
Household addressable provides an opportunity to go beyond demography to target messages only to households in a target audience. Addressable ads are dynamically inserted, whenever/wherever the household is watching if they meet the targeting criteria.
Zone addressable provides the ability to leverage first and third party data to broaden the target by isolating zip codes and cable zones that over-index for a brand beyond the 210 DMAs to over 2,877 cable TV zones.
Extend the reach of addressable television via device (mobile/tablet) level targeting to over 500MM devices in the United States. Device addressable targeting provides an opportunity to get true cross channel attribution and deliver sequenced messaging from TV to retargeting or sequenced ads (mobile video and display) on a mobile device or even through social inventory.
In addition to traditional TV providers, we have the capability to reach our target audience on their connected TV across over 50MM connected TVs nationwide. This allows advertisers to extend the reach of addressable campaign across hard to reach, non-traditional television including Hulu, Roku, YouTube, etc.
How does it work?
To identify high value households, advertisers match multiple data sets against each individual subscriber file, device ID, or IP address. Households, zones, devices, or connected TV sets that are in both the match file footprint and in the data set are the matched set and they will receive the addressable ad.
Advertisers and agencies then plan the addressable video campaign across multichannel video programming distributors (MVPDs) at scale, standardizing both targeting and measurement, ensuring that all inventory and calls to action are tagged appropriately for proper measurement and the campaign is optimized to hit the goal metrics.
How do you measure the efficacy of addressable TV?
Unlike traditional broadcast television, where the results are measured by whether or not the TV networks or stations provided the adequate number of GRPs, addressable TV is measured more closely to digital display campaigns.
Use 1st or 3rd party transaction data to measure the lift in sales of exposed and unexposed households to show a true ROI after completion of the campaign.
Marry sales data with campaign exposure data to attribute the impact of addressable exposure on key sales metrics including:
- sales lift
- total buy rate
- days to purchase
- optimal frequency
By tracking site traffic & engagement through pixel placement on the advertiser’s web page, we can actually measure the number of “clicks” on a TV ad. Seriously.
Through pixels on home, search, or landing pages, we can measure the impact of addressable video on key engagement metrics such as:
- lift in total visits
- visits by page pixeled
- visits by frequency
- days to first visit from exposure
Advertisers determine the influence of ad exposure on favorability and awareness of the addressable campaign. By recruiting and surveying households in the target, advertisers can measure the impact of addressable video on key brand health metrics including:
- ad awareness
- brand recognition
- intent to purchase
For many advertisers (especially auto, retail, hospitality, tourism, entertainment, and dining), the holy grail is the ability to track visits to physical locations by leveraging mobile location data. Within the parameters of addressable television, advertisers have the capability to map those devices and track their visit locations and dwell time to household IDs in the addressable television target audience who were exposed to the ad.
Through the use of opt-in mobile applications, we can track on-site visitation to measure the impact of addressable video on key visitation metrics such as:
- total location lift
- incremental location visits
- lift on store visitation
- visitation by ad date exposure
The future is now.
Forward-thinking advertisers will find that timing for testing addressable television is now. The nascent addressable TV space means that competition for inventory is lower than ever. People are watching more programming than ever, just not on the TV. Early movers can gain competitive advantage by testing the impact of having better data, price and data transparency, and fiduciary responsibility over their budgets.
Next month: The strategic differences between addressable television and online video.