TV Advertising Offers Innovation Opportunities
Ddressable TV allows brands to be closer to their consumers by allowing them to target specific audiences with ads.
Advertising was simpler in the past. Brands ran ads between TV programs and viewers could not skip, pause or record the ads. Advertising was not categorized by demographic and people in the same place watched the same thing simultaneously.
Advertisements can now be targeted not just to specific people, but to the whole household. There are three types of TV advertising: addressable TV, over the top, connected TV and many more. Let’s get into the details of addressable TV.
What’s Addressable TV?
Addressable TV allows advertisers to display different ads to different households during television programming. These ads collect first- and third-party information to determine what household members are interested in. Ads for baby products and strollers can be sent to households that have just had a baby. A neighbor with slightly older children could receive an ad showing the many benefits of buying scooters and bicycles for children. This is how well TV advertisers know their customers.
Addressable TV allows brands to communicate specific product messages to targeted audiences. It also makes it possible for brands to reach new audiences across more platforms, which can increase sales and improve performance. Addressable TV makes use of research and granular information to provide the most relevant data to the correct audience. Advertisers have greater flexibility to optimize campaigns according to their data-driven nature.
Linear TV is a term used to describe traditional television. Linear TV is any cable, satellite, and internet subscription that is displayed on a schedule via a cable box, antenna, or cable box is considered linear. These ads are not targeted by linear TV. The same ads are seen by everyone in a particular geographic area.
CTV (Connected TV) is not available for broadcast to personal or mobile televisions. It only works on television sets. CTV is considered one of the most effective methods for targeted video advertising. It allows marketers to gather more data and can use the larger screens TV offers to create more engaging ads. CTV also allows for household- and device-specific targeting.
CTV and OTT are different in that connected TV can only be used on TV sets. OTT refers to targeted video played on mobile phones, computers and connected TVs. This includes hundreds of streaming apps and platforms that are available to customers. It is also one of the most lucrative advertising opportunities. OTT was popularized by viewers who became tired of watching programming via satellite or cable connections and decided to switch to “cord-cutting”. Examples of OTT platforms include Netflix, Amazon Video and HBO Now.
The difference between CTV Advertising, Addressable TV Advertising and OTT Advertising
Addressable linear TV advertising allows you to send specific ad campaigns directly to households using set-top boxes. Over-the-top content, on the other hand, is consumed via the internet. Ads can appear on connected TV as well as personal computers and mobile phones.
CTV and OTT ads can be viewed via internet-enabled devices like connected TV, Hulu and Netflix. Addressable TV ads, however, are sent via a set top box.
How does Addressable TV work?
Addressable TV is not the same as traditional TV advertising. Instead of sending ads based upon the broadcast or program you want to advertise on, you can choose the ideal household for your brand. Targeting your audience can be done using more personal data. This includes viewing habits, demographics, viewing locations, and even viewing habits. These ads will then be delivered to the households you have specified.
Addressable TV relies primarily on consumer data, such as frequented websites, device types and watched programs. These data points are used by marketers to create household profiles and then distribute them to OTT operators, cable operators, and advertisers.
Advertisement on Addressable TV
Before you can dive into addressable TV advertising, you need a solid marketing plan.
Establishing your goals is the first step in building a solid strategy. Addressable TV can be a good fit for your brand if you have established your goals. Are you looking to increase leads, cross-sell or do you want something else?
Define Your Audience
What demographic is your ideal viewer? Collect data about the names and locations of your target audience. Also, what devices they use and what content they watch most. Third-party data providers can help you if you are having trouble defining your target audience.
Plan Your Campaign
The length of your ads, as well as the frequency and size of your audience, should all be considered when designing your campaign. You will also need to consider the platform you use. Some platforms allow you to target more specific audiences with data such as location, demographics, devices, and browser types.
After you have run your addressable TV campaign successfully, it is time to evaluate how the ads are performing. Is the performance meeting or exceeding expectations? This will help you plan and structure your next ads and make adjustments before you broadcast them. It is best to test your ads for at least 30 days before broadcasting.
Are brands better off switching to addressable TV instead of mass-market TV advertising? There is no reason to stop you doing both. Marketers have the opportunity to use addressable TV to increase consumer spending and show their advertising skills. It is clear that addressable television offers opportunities for innovation. More advertisers will jump on board the train to discover what this advertising format can offer.