Author: Allison Balch

Addressable TV Advertising: A Tipping Point

Posted on November 20, 2024 by - Report

Two-Thirds of Advertisers Plan to Start Using Addressable TV in 2025

The number of advertisers not using addressable TV advertising* has decreased by nearly half over the past two years and a significant share of those intend to start using addressable next year. Nearly 65% plan to start using addressable in 2025, a +57% lift from 2022. Of marketer respondents, 78% said they plan to start using addressable in the next year.

Increased adoption among advertisers is driven by satisfaction with the addressable TV advertising in market. 85% of advertisers report they are satisfied, with those saying they are very satisfied increasing by 61%.

 

Over Half of Advertisers Consider Addressable TV a Must-Buy

95% of advertisers report they are at least considering addressable TV today and over half say it is a must-buy, reflecting a +51% lift from the year prior.

The top four strategies for using addressable TV are:

  1. Optimize reach and frequency
  2. Complement traditional (linear) TV buy
  3. Reach an audience with specific messaging/creative(s)
  4. Integrate first-party and third-party data to reach the right audience

 

Nearly Two-Thirds of Advertisers Say Addressable TV Played a Role in Their Upfront Negotiations

Addressable TV advertising is cementing its role in the Upfronts, with 63% of advertisers saying the medium played a role in their 2024-2025 Upfront negotiations – a +34% lift from 2023.

Additionally, advertisers are saying that the role addressable is playing in Upfronts negotiations is growing in importance, with 82% saying it was important or extremely important.

 

Three in Five Advertisers Believe the State of Addressable is Improving

60% of advertisers believe that the current state of addressable has improved, with a +64% increase of those advertisers saying it has improved significantly in the last year.

As usage of addressable continues to become more mainstream, advertisers say the importance of receiving more education on how to plan, buy, and measure addressable TV is very important, with 58% stating they’d like more education.

 

The Future of Unified TV is Addressable

Go Addressable is committed to helping advertisers across the ecosystem better reach their audiences at scale. To learn more about the addressable TV advertising opportunity, visit GoAddressable.com.

Debunking the Demo Myth: Addressable TV is Not Just for Older Adults

Posted on July 2, 2024 by - Report

Adults Are Consistently Watching Both Linear and Streaming

Contrary to some buyers’ beliefs, adults 18-34 still watch linear TV. Go Addressable partnered with MRI-Simmons to understand the viewing habits of this coveted demo, in order to provide valuable insights for advertisers and showcase how addressable TV can help reach this audience.

80% of adults 18-34 watch both linear and streaming. While adults have been found to watch streaming only at higher rates than linear only, it demonstrates the value of using addressable across linear and streaming to reach this audience.

 

U.S. Adults Age 18-34 in Go Addressable Footprint Spend Majority of Time with Live TV on their TV Screens

For those adults 18-34 within the Go Addressable footprint*, over two thirds are watching live. They are +25% more likely to watch live TV than those A18-34 who fall outside the Go Addressable footprint.

Furthermore, 53% time spent viewing premium video content takes place on the big screen. In fact, time spent viewing with this demo in the Go Addressable footprint is +9% more likely to be on a TV screen than outside the footprint.

 

Nearly Two-Thirds of All Adults are Spending Time with Cable, Broadcast or FAST Content

While adults in the Go Addressable footprint had a higher percentage of time spent watching Live TV on the big screen, it was found that in general, adults 18-34 are spending around two-thirds of their viewing time in a typical week with cable, broadcast or FAST.

 

The Addressable TV Opportunity

Go Addressable is committed to helping advertisers across the ecosystem better reach their audiences at scale. To learn more about the addressable TV advertising opportunity, visit GoAddressable.com.

Amid Economic Pressure, Addressable TV Advertising Is More Important Than Ever

Posted on June 25, 2024 by - Blog

In a post-pandemic efficiency-minded environment, marketers need to determine how to get the most out of each marketing dollar, and advertising is a key part of that equation. Seventy-three percent of marketers say they are being asked to do more with less, and 64% even say they don’t have the budgets to execute their strategies, according to Gartner research reported by the Wall Street Journal.

Enter addressable advertising, or the practice of buying advertising based on a precise audience, not merely the content against which it appears. Addressable advertising is playing a bigger role across the advertising ecosystem, even in upfronts TV deals. Research from Go Addressable indicates that addressable TV influenced 47% of advertisers’ 2023-2024 upfront negotiations. And that figure is only expected to rise this year.

Perhaps the most critical reason for addressable’s surge in the current economic environment is the efficiency it unlocks. Addressable is 20 to 30% more effective at delivering incremental reach than linear, according to research by Go Addressable. What’s more, addressable eCPMs, or those associated with the actual target segment impressions (effective CPMs), are more efficient than linear eCPMs due to the more fine-grained targeting that addressable enables.

In other words, even though addressable might seem more expensive than non-addressable advertising on its face, it’s actually more cost-effective due to the targeted audience it unlocks — and the results it delivers.

Four factors allow addressable to deliver that performance:

1. Accuracy

Data is the key building block for delivering effective campaigns. Addressable uses authenticated deterministic data, or data provided directly by consumers themselves, to drive more accurate match rates. In fact, initial match rates can be as high as 95% when used for audience targeting, compared to only 60% when using IP address alone to match for identity, according to a recent analysis. Creating campaigns built on deterministic data ensures that marketers can target their intended audiences to drive reach, ultimately increasing efficiency.

2. Measurement and Optimization

With better data and match rates comes superior measurement and optimization. Using addressable, marketers can better evaluate whom they’re reaching, and better understand how they are driving outcomes. This allows them to identify the most desirable audiences and optimize campaigns to get the best performance.

3. Media Quality

Reaching audiences in premium, brand safe environments has become increasingly crucial for marketers and can provide more positive viewing experiences. Due to the fact that addressable inventory is rooted high-quality content from MVPDs, marketers can confidently know they are reaching audiences within premium inventory, avoiding fraudulent environments, ensuring their budgets don’t go to waste.

4. Scale

Addressable used to face a scale problem relative to linear or digital video. No longer. Audiences authenticated against MVPD subscriptions or streaming registrations now supply advertisers with millions of impressions to target across TV, set-top box, video on demand, and streaming, all within a single campaign. In fact, last year there was a monthly average of 68 billion minutes enabled for addressable advertising, up 29% from the year prior.

As marketers increasingly feel pressure to drive sales while simultaneously facing shrinking budgets, efficiency has become more important than ever. Addressable advertising offers a solution to this bind, delivering on reach, accuracy, measurement, quality, and scale, all while unlocking the highest value for each advertiser dollar.