Targeted advertising in a linear TV commercial break has been talked about for years. The rollout in the Netherlands is finally underway. We update you on the latest.
With this advanced form of television advertising, advertisers can deploy a more personalized and effective approach, greatly increasing the opportunities for brands to reach their target audience segmented through TV. Reason for us to answer the most frequently asked questions.
What does addressable TV mean?
Addressable TV is an advanced form of television advertising and specifically targets individual households or viewers based on demographics, behavior or other relevant criteria. Unlike traditional linear TV advertising, in which all viewers see the same ad at the same time, addressable TV uses advanced technologies to show customized ads. People watch the same TV program, but thus get personalized ads.
This is made possible through the use of Ziggo's media box and the data of their customers that they are allowed to use (after consent). For example, for targeting advertising on demographics, geographical location, living situation, family composition and viewing behavior (e.g. soccer viewers). It gives the advertiser opportunities to tailor the content of his messages to the viewer. You can leverage the mass reach of TV this way, but make it more effective by showing a commercial more relevant to the target audience.
How does addressable TV?
Addressable TV ads are inserted into the ad space of linear TV broadcasts. This means that when a household watches a linear TV program in which ads are broadcast, the ads that would normally be displayed are replaced with specific addressable TV ads tailored to that specific household. This override is done based on data on viewing behavior and household characteristics. For example, parents of children see a commercial of a toy brand, while homeowners see a spot of a product to make their home more sustainable.
When is it useful to add addressable TV to your marketing mix?
Addressable TV adds value to be deployed in different situations, depending on advertisers' specific goals and needs. Some scenarios in which the use of addressable TV is useful:
- Local targeting:
For advertisers targeting local markets, addressable TV is an effective way to place ads that specifically target viewers in certain geographic areas. This allows companies to promote local offers, events and promotions to increase engagement and conversions within their target area. And it also makes TV, the most effective branding medium, accessible to advertisers operating only in a certain region. - Personalization:
Addressable TV offers the ability to personalize ads based on individual viewer profiles and preferences. This allows advertisers to deliver more relevant and engaging ads that match individual viewers' interests and needs, which can lead to higher engagement and conversion rates. - Testing and optimization:
With addressable TV, advertisers can optimize campaigns by testing different ad variants with different audiences and gain insight into which message is most effective. While traditional online KPIs such as website traffic are not directly applicable to addressable TV, there are still ways to measure and optimize ad effectiveness. Advertisers can use measurement methods,such as attribution models and data analytics, to evaluate the impact of their ads on consumer buying behavior.
Additionally, one can use surveys, focus groups and direct customer feedback to gain insight into how the target audience responds to different ad variants. By combining this data with demographic information and viewer behavior, advertisers can refine and optimize their ad strategies to achieve better results. While it may not be as directly measurable as online ads, addressable TV offers valuable opportunities for testing and optimizing ad campaigns. With the right tools and approaches, advertisers can fine-tune their ads to the needs and preferences of their target audience, which will ultimately lead to improved performance and ROI.
An initial study by Talpa shows that targeted advertising is better recognized and better remembered, making brand recall higher than a regular TV campaign.
Engagement & Effectiveness
This more targeted way of advertising can lead to higher viewer engagement and a better return on investment for advertisers. Moreover, addressable TV also allows for more accurate measurement and analysis of the effectiveness of advertising campaigns, which enables advertisers to continually optimize and improve their strategies.
These precise metrics and analyses that measure the effectiveness of advertising campaigns in addressable TV are often done using advanced technologies and data analysis methods. Some ways this can be done are by looking at impressions and viewership data, targeting metrics, response rate, attribution models or advanced analytics.
All in all, addressable TV is a valuable addition to brands' marketing strategy, giving them more control and flexibility over how they deliver their messages to their target audience and making them more responsive to individual needs and preferences.
What it says addressable tv nstanding in the in the way?
The launch of addressable TV stands ever closer. Starting in April, this is expected to result in the ability to run live campaigns in which linear commercials from one advertiser will also be replaced by an addressable commercial from another advertiser. To do this, the impressions from addressable commercials must be able to be converted to Gross Rating Points (GRPs) in order to apply an adjustment to the linear GRPs. These adjustments are tracked by National Media Research (NMO).
The risk to linear TV campaigns is that traditional ad spots will be replaced by addressable TV ads, reducing the exposure of linear TV ads. Thus, a linear advertiser could potentially achieve fewer GRPs than planned, reducing the effectiveness of their traditional TV campaigns. This highlights the importance of accurate measurement and analysis to understand the impact of addressable TV on linear TV campaigns and make any adjustments to ad strategy.
Conclusion
Until now, TV has been out of reach for a portion of advertisers. This because a regular TV campaign has a high investment and relatively high waste when you have a local message or specific target group. Addressable TV has many possibilities that allow these advertisers to benefit from the impact of the big screen with more relevant campaigns. Reason for us at STROOM to already include this new possibility in new media plans, where relevant.