It’s not news that the TV landscape is evolving and becoming more fragmented and complex. TV has expanded across screens and platforms, to include live programs, original streaming content, and VOD programming. Viewers are seamlessly switching between linear and streaming content, jumping across apps, and ultimately consuming TV whenever, wherever, and however they want.
While this explosion of content is great for consumers, it has become more difficult for advertisers to try to capture attention and manage reach. And while many advertisers are turning to CTV to try to reach audiences, the truth is that not all of that content is ad supported. According to Nielsen, streaming accounts for 38.4% of monthly TV viewing in the U.S., but when you look at ad-supported streaming platforms, that ends up accounting for ~18% of total TV viewing.
So, how can advertisers reach audiences across all forms of TV without inundating them with the same ads repeatedly? They need a convergent solution, across linear and streaming, powered by deterministic data, delivered in premium brand safe environments.
That’s where addressable TV advertising comes in.
At a recent TV Upfronts event, Go Addressable broke down five essential strategies for success when it comes to addressable advertising and why advertisers should allocate 10% to 20% of their TV to this medium. Here are five key things advertisers should keep in mind as they plan out their TV buys for the year ahead to ensure they are driving results.
1. A convergent TV solution is crucial
It’s clear that finding viewers where they are watching TV is more important than ever. Advertisers need a convergent TV solution that allows them to reach audiences across linear and streaming so they can manage campaigns holistically and see the true impact of their media.
The good news is that addressable, while originally rooted in linear TV, has evolved into a cross-platform solution where reach and frequency can be managed and can be used to streamline goals across platforms. And, because addressable is rooted in inventory from MVPDs, it gives advertisers scale across the most premium TV content in the market. In fact, there are 68 billion available addressable impressions within brand safe, premium environments across the Go Addressable footprint that advertisers can tap into.
2. Deterministic data is King (or Queen)
Data is the main building block for identifying the right audience, and amid increasing signal loss, the value of accurate, reliable data is more important than ever to advertisers. Starting with quality deterministic data is what allows advertisers to reach their high-value audiences, because not all data or identity solutions are created equal.
In a recent study with CIMM on the reliability of IP addresses as an identity solution, it was found that the ability for a campaign to attain reach and scale was impacted by the data used for targeting. The research showed that addressable match rates, which are fueled by audiences authenticated against MVPD subscriber data from MVPDs, start with a 95% initial match rate and maintain consistent match after the quarter. Campaigns that utilize IP addresses alone start at a 60% initial match rate and can drop to as low as 24% after 90 days.
3. Tech matters
While data should be at the core of any TV campaign, incredible technology is still needed to power those campaigns. Because at the end of the day, advertisers need the ability to precisely deliver against their most valuable audiences, cross-platform, with increased efficiency to limit waste and understand the impact of their media.
They also need to manage reach and frequency so they can ensure they aren’t over or underexposing viewers. To solve for this challenge, advertisers can utilize addressable tech to manage heavy TV viewers and create segments of light-TV viewers and make sure households are being delivered the ad the optimal number of times.
These are amazing tactics fueled by powerful tech that allows advertisers to look at their TV buys more holistically and increase campaign reach among certain audiences.
4. Young adults are watching linear and streaming
There is a misconception that young adults don’t watch linear TV anymore and can only be reached via streaming. That’s just not true.
Research shows that the majority of adults 18-49 watch TV across linear and streaming. That means, if advertisers are relying solely on CTV to reach them, they could miss a significant portion. Addressable data and technology can help brands find their audience even if that is a younger audience or an audience that doesn’t watch as much TV.
5. Actions over metrics
Today, advertisers are held accountable for media metrics, and business outcomes and results. It’s not enough to just reach audiences, advertising needs to drive the right action. With addressable and its deterministic data used for measurement, brands can better understand the connection between accurately reported exposures and outcomes across the purchase funnel, whether that be awareness, a website visit, an in-store visit or even sales lift. Further, brands get a better understanding of the performance and what is driving action so that they can better optimize for future campaigns.
Addressable TV is a key component in the changing TV landscape
While the definition of TV may be changing, the truth is TV is still the cornerstone of advertising because it works. So, while premium linear TV has evolved, it has done so in an effective way; it has converged, across platforms, and technology like addressable allows advertisers to buy it more closely aligned to how they might buy impression-based digital with all the additional controls.
The benefit of this is advertisers can now rely on technology and deterministic data in order to deliver the most efficient TV campaigns, based on their most valuable audiences in top quality and brand-safe content. Regardless of the size or duration of a campaign and whether targeted broadly or narrowly, addressable is a powerful tool that should be used as an integrated tactic for overall TV buys to make that budget go further and obtain the best results throughout the entire funnel.