11 / April / 2020

Does your Ad know the address?

Video and OTT-media has truly hit the mainstream. Even outside media bubble you will find that people hold views about how many SvoD subscriptions are too many, how many ads are too many, what are the most popular and the most money-making TV-shows. That is, everybody is somehow interested.

Does your Ad know the address?

As Emarketer says by 2023 digital ad spending will take 60% of total media spending and the sum makes us tingle: $517 billions.

Advertising technologies develop blinkety blink and become trickier, more intelligent and now base on most advanced technologies. As, for example, addressable advertising.

Addressable TV advertising technologies enable advertisers to selectively segment TV audiences and serve different ads or ad pods (groups of ads) within a common program or navigation screen. Segmentation can occur at geographic, demographic, behavioral and (in some cases) self-selected individual household levels.

To cut long story short: technically it is a love child of big data, targeting and recommender systems. OTT streaming platforms are beginning to get involved. Hulu, for example, has gradually started to sell addressable into its live TV service in 2019, and YouTube plans to do the same.

Digital Ad Spending Worldwide, 2018-2023

You will ask, what are red hot advantages of addressable advertising? 

Well, they are pretty manifestative:

1. The improved targeting from addressable advertising is a win-win for consumers and advertisers.

That technology can help consumers be exposed to messages that are more interesting to them. Unsurprisingly, consumers prefer seeing messages for products that are relevant to them. Teenagers have little use for loan or nursing home ads. Addressable TV gives advertisers the chance to dramatically reduce waste circulation by eliminating exposures to people not interested in their product or brand.

2. Addressable TV advertising will be able to increase return advertising spend (ROAS) by allowing a focus on downstream measures that go beyond raw viewership and frequency.

Recently there has seen pressure to measuring return on investment, which is considered to be the “holy grail” due to the difficulty of calculating exactly the impact of marketing expenditures. Measuring ROAS is important, and addressable TV is enhancing the ability to do so.

So, what is TV-service has to do to take advantage of addressable ads while it is green?

1. Contact SPB TV to tune up your middleware ware in order to collect more user data.

2. Build relationship with the advertiser.

3. Get ready.