Addressable TV advertising allows specific, segmented television advertisements to be broadcast to more precise viewing audiences. Addressable TV advertising is only in its infancy and is still growing in availability, with the first phase of testing having started in June of 2020. It is not yet available on most devices in most markets.
Addressable TV advertising is a form of targeted advertising, like online targeted ads. While watching linear television programming, each viewer is shown different advertisements depending on their history and personal information.
Here’s more about addressable TV advertising and how it works:
What Is the Difference Between Addressable TV Advertising and Linear TV Advertising?
Traditional linear TV advertising provides the same ads for anyone viewing the program in a set geographic area. The only customization for the ads is determined by the type of program on the TV and when it’s being aired.
For example, a Saturday morning kids show is going to have a different target audience compared to a Sunday night football game, and have ads that reflect the change in audience.
Addressable TV allows marketers to reach specific audiences based on their household data, no matter the time, channel, or program they are watching. The ads are customized for their household and target their needs.
With addressable TV advertising, two families can watch the same live programming but experience different advertisements. This way, a newlywed family with no kids is served different ads than an elderly couple in retirement.
On the advertising side, addressable TV allows marketers to focus more on individual consumers rather than trying to pair programming with generalized advertisements.
What Is the Difference Between Addressable TV and Connected TV?
A connected TV—also known as a smart TV—is connected to the internet. It is able to stream over the top (OTT) media through internet streaming services like Netflix or Hulu as well as a cable connection. Advertisements that transmit through a connected TV streaming OTT media utilize targeted ads, while traditional broadcast television offers linear advertisements.
Technically speaking, all connected TV is addressable because it allows for an advertisement to be placed due to the personal data of the viewer. However, addressable TV goes one step further and goes beyond OTT media content to provide addressable advertisements during broadcast cable TV programming.
When it comes to addressable TV vs OTT advertising, OTT already uses addressable advertising but is limited to streaming content. Addressable TV elevates OTT advertising by making targeted advertising an option even during regular television programming.
What Does Addressable Mean in Advertising?
Addressable advertising is a form of targeted advertisement. The ad is shown to a selected audience based on certain traits like their geographic, demographic, and behavioral information.
Targeted advertising explains how, when you search for home improvement tools for a weekend project, you are later shown multiple ads about hammers, saws, and power tools.
What Is an Addressable Audience?
An addressable audience is a subsection of the potential market advertisers hope to target. In the ideal scenario, an addressable audience is an audience of only one, so marketers can hyper-specialize their advertisements to speak directly to their personal pain points and needs.
Some characteristics that can be targeted to create an addressable audience include:
- Socio-economic status
- Education level
- Income level
- Employment status
Some addressable audience values go beyond physical identification and can include psychological factors like:
- Personal values
Who Are the Addressable TV Partners?
Addressable TV has partnered with eleven national content providers:
- A&E Networks
- Hearst Television
Together, these eleven partners count for 90% of all linear TV viewership.
With the current tests, the only addressable TV platform is web-enhanced Vizio TVs. The end goal includes all smart TVs across all manufacturers, but that is not yet available.
Agility Can Help
At Agility, we keep up with all digital marketing trends to help you get the most from your marketing budget. Rather than casting a large net and hoping something shows up, we believe in narrowing your focus and targeting specific audiences so you can place the right ad in front of the right audience at the right time and place.
Our advertising platform is built to help you maximize ROI and meet your return goals by utilizing digital tools to help you accurately target prospective customers. Combined with Agility Analytics, you get a complete view of all performance metrics of your advertising campaigns, making retargeting and other changes straightforward and profitable.
Contact Agility today to schedule your free demo so you can see for yourself the power of the Agility platform.