Commentary

The State Of Addressable TV Advertising

In speaking to many marketers over the last few months, I've noticed a clear, consistent message.  They are demanding more and more leadership from their agencies in bringing greater relevance, effectiveness and efficiency to their TV media buys. Clients seem focused on generating experience and results from within the universe that exists today so they can expand their efforts as the number of homes they can reach grow. Google may have heard the same message recently, deciding to invest in addressable TV advertising company Invidi.

Addressable TV companies and implementations can look very different, but they all spring from the same goal: using data and technology to put a more relevant TV ad in front of the right person at the right time. To date, there are three types of implementations that have emerged under the broad addressable TV banner:

Zone: target to groups of HHs using third party and/or advertisers data.

Optimized - target to the highest comp of a target using viewing behavioral data.

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Household - target specific HHs using third party and/or advertisers data.

The success of the addressable campaign, like any campaign, depends upon defining specific goals and measures of success. What implementation best fits your marketing objective? How are you thinking about applying it? How will you know you were successful? For addressable TV, using data effectively and efficiently is the key to a successful campaign.

There are three groups that need to work together to bring these addressable TV implementations to the agency/client. And there are different combinations of these players that can be assembled to make a national footprint:

Technology - Companies such as Visible World, Invidi, and Admira are enabling the capability.

Database - Companies like Experian and Acxiom are adapting their data to this application.

Distributor - Companies  including Cablevision, Comcast, and Dish are installing the technology.

When these groups come together and bring a product to market that is simple to plan, buy and execute, great results can happen. For example, Visible World, Cablevision and Experian have a powerful Household Addressability product for those who can execute in the New York market. The trio has telecommunications, entertainment, and financial clients expanding and extending their commitments based on their successful results.

We are still some time away from being able to deploy a single national addressable household buy. However, that should not stop clients from getting involved now. Marketers do have access to areas where they can increase their competitive advantage and extend that experience to the broader footprint as it expands. When Zoned, Optimized, and Household capabilities are planned and executed together, they can make up a powerful, national, addressable TV campaign that is deployable today.

3 comments about "The State Of Addressable TV Advertising".
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  1. Mike Einstein from the Brothers Einstein, May 28, 2010 at 12:07 p.m.

    Such utter foolishness. Scalable reach, the end all brands aspire to, and targeting, the failed means by which they seek to get there, are diametrically opposed forces. It's like looking at a small sliver of the road through the rear view mirror. No wonder everybody is so lost.

    Even more foolish is the notion that you can reach anybody with a product nobody wants and everybody is equipped to avoid, the ads.

  2. John Grono from GAP Research, May 28, 2010 at 8:18 p.m.

    Isn't targeting a household so 1960s? OK ... someone in the home may have that channel and/or programme on, but are you really getting your ad-impact with the right person? Sure there is a correlation, but wouldn't it be better to use a people-based panel and merge that data with the household tuning to at least probabilisticly 'target' the end consumer?

  3. Christine Watkins from INVISION, Inc., June 2, 2010 at 9:50 p.m.

    I believe you left out another component of technology required to scale addressable TV. The cable network and satellite sales system vendors (e.g., INIVSION and MSA) and the agency vendors (e.g., DDS and MediaBank) need to be prepared to manage television pricing, proposals, contracts, EDI, invoices, etc for advanced/targeted television advertising. INVISION is currently working on this with DIRECTV and INVIDI. Scale cannot be achieved unless the technology exists to support the process of managing these new types of orders.

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