DirecTV Credits Addressable Ads With Future Ad Growth

DirecTV is expecting its advertising sales to grow quickly over the next three to four years -- specifically due to rapidly expanding addressable advertising efforts.

Speaking at the company’s investor day, Paul Guyardo, executive vice president and chief revenue and marketing officer for DirecTV, estimates that business will grow 30% to 40% over the next three to four years.

The expectation is that DirecTV ad revenues will increase to $750 million by 2016, from $550 million at the end of this year.

Since the beginning of this year, DirecTV has initiated some 120 campaigns, which are “real and scaleable,” says Guyardo. And among 90% of those deals with marketers, he notes, are clients that have come back a second and third time for other campaigns.

Targeting is one key to success. He also says giving clients return path data, with return on investment results, will increase addressable advertising activity and close the gap in regard to other pay TV distributors ad sales activities.

Guyardo admits that for years, DirecTV lagged behind other TV distributors -- especially cable operators -- when it came to selling advertising on the local level.

One example of where a DirecTV addressable media buy is better than a traditional media ad buy, Guyardo says, is when using traditional TV in buying men 25-54 who have an income of $150,000, this can yield a “true target reach” of 14 million -- out of a possible 114 million. That means only a 12.3% efficiency. But making the same buy on DirecTV, a marketer can reach 28.6 million, with a buying efficiency of 100%.

At the same conference, Mike White, chairman/chief executive officer of DirecTV, talked up business pushes over a new subscription video on demand service and improved broadband video business.
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