Addressable TV Ads Gain, But Measurement Concerns Remain

Long a concern of many marketers, addressable TV advertising still needs a better return-on-investment (ROI) measurement for the business to accelerate.

A new study by Go Addressable, the pay TV provider consortium, in conjunction with Advertiser Perceptions, says half of advertisers would increase their investment in addressable products if the business remedied some of their concerns.

Among the marketers who have are currently not committed to addressable TV, nearly 40% of advertising executives point to budgetary limitations. 
In addition, 23% of those who have not spent on addressable agree there are concerns over the “lack of value relative to cost.” 

Traditional TV addressable advertising allows marketers to swap out creative messaging depending on the specific household consumer target.

eMarketer projects that linear TV addressable spending will grow 27.4% to $3.63 billion this year, and 16.2% to $4.22 billion in 2023.

Addressable TV ad spend is still around 5% to 6% of total TV advertising revenues.

Go Addressable partnered with Advertiser Perceptions to survey 300 agency and brand marketing/advertising executives.

Of those surveyed, 66% are currently buying addressable advertising inventory. The top reasons for those marketers are as follows: 48% say it provides better targeting, 46% say there is an ability to measure and prove out ROI, and 37% point to successful past performance.

Go Addressable members include Altice USA, Comcast Advertising, Cox Media, Dish Media, DirecTV Advertising, Spectrum Research, and Vizio.

2 comments about "Addressable TV Ads Gain, But Measurement Concerns Remain".
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  1. Tony Jarvis from Olympic Media Consultancy, September 8, 2022 at 4:01 p.m.

    Wayne:  "Addressable" metrics, typically using ACR technology, only reflect the delivery and rendering of the creative message to a device or screen and need to be independently verified (nudge, nudge).  In other words, ACR provides no assured actual viewing by the audience addressed.

    As generally understood by enlightened media planners, buyers and researchers, without confirmation of exquisitetly measured target audience contact or eyes-on/ears-on metrics (e.g. TVision) at a mimimumm and preferably actual attention measures for that same target audience, there can be no outcomes or ROI generated however brilliant the creative message.  Perhaps in the digital and programmatic age, we especially need to be reminded that, delivery is not necessarily receipt.  Reciept is not necessarily Eyes-On/Ears-on.

    When advertisers better understand these basic media metrics requirement for all media, the leverage of their media budget on their creative executions and the latter's power to drive brand outcomes will increase significantly.   As the great Roger Baron, FCB, once opined on the value of generating actual audience engagement , "It's the creative, stupid!" 

  2. John Grono from GAP Research, September 8, 2022 at 5:13 p.m.

    Plus one Tony.

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