Category: Insight

According to the Deloitte 18th annual Digital Media Trends report, U.S. households spend $61 per month on four streaming video services, marking a near +30% lift in spend on streaming versus the prior year. As the out-of-pocket cost of streaming goes up so too does consumers’ appetite for cheaper, ad-supported options. Last November, Antenna TV reported a significant milestone when ad-supported plans accounted for the majority of sign-ups to premium subscription video on demand (SVOD) services.

Unduplicated Audience Reach Across MVPDs and Ad-Supported Streamers

While streaming may be on the rise, Deloitte’s survey also found that two-thirds of U.S. consumers still pay for either a traditional TV subscription or live streaming TV. In fact, the MVPD and vMVPD members of Go Addressable collectively represent 51M unduplicated households. We know that consumers are highly unlikely to sign on to multiple live TV services since subscribing to two would be both duplicative and expensive.

When it comes to streaming, it’s more likely that consumers and households subscribe to multiple services, resulting in limitations. To that point, Comscore data indicates that while Amazon Prime and the ad-supported tiers of Disney+, Hulu, Netflix, and Peacock collectively represent 106M households, the deduplicated count is more like 58M households. This represents a -46% decline since many households in this universe are likely subscribed to a multiple of these services.

Ultimately, what this means is that the actual audience sizes on MVPD addressable and major ad-supported streaming platforms are much more comparable than advertisers realize.

Decline in Combined Household Reach as a Result of Audience Duplication

Source: Comscore Total Home Panel, US Universe Estimates, March 2024

Addressable Allows Advertisers to Reach Unduplicated Audiences with Efficiency

With a collective reach of 51M unduplicated households, addressable offers advertisers significant scale and the opportunity to reach audiences without repetitive messaging. Advertisers that work across Go Addressable members will not only continually drive incremental reach, but they will also tap into highly engaged audiences and deliver against their frequency goals. According to The Score Report by Comscore, these five streaming services (Hulu, Netflix, Amazon Prime, Peacock, and Disney+) combined accounted for less than 10% of ad exposure time on TV in June.* By comparison, cable viewing across MVPDs and vMVPDs made up over 40% of ad exposure time on TV in June.

Not to mention, when working off an unduplicated audience base, advertisers have a more accurate representation of the actual audience size they can reach. This means that advertisers can avoid wasted ad spend against duplicated reach, resulting in a more efficient use of media spend, and in turn can gain a better understanding of overall ad effectiveness.

Ultimately MVPD addressable and streaming/CTV addressable play complementary roles. Younger audiences are watching across linear and streaming so to hit their reach goals, advertisers need to work across platforms. Leveraging MVPD addressable will consistently deliver about 40% reach regardless of target audience penetration.

*Source: Comscore, Settling the Score (October 2024).

Go Addressable partnered with CIMM to explore addressable TV advertising usage and trends across buyers and sellers to provide proven strategies for optimizing addressable TV.

Based on in-depth research, the report highlights the invaluable role that addressable TV plays in the overall media mix and offers 5 key insights for advertisers looking to implement or increase addressable TV in their media campaigns and showcases the optimal uses cases for it.

download findings

5 key insights based on the research

1. Addressable consistently delivers ~40% reach regardless of whether the brand has a high or low target audience penetration.
2. Addressable delivers incremental reach to both large and small linear campaigns. When linear reach begins to plateau, addressable TV is found to be between 20% and 30% more efficient in adding incremental reach than linear.
3. eCPMs for addressable campaigns (those associated with the actual target segment impressions) are more efficient than linear eCPMs when it comes to light linear TV viewing audiences.
4. Addressable TV is more precise than IP address matching. An analysis found that 95% of addressable HHs were matched via postal address compared to 60% via IP address. After 30 days, 82% of addressable homes remained accurately matched compared to 44% of CTV homes.
5. Addressable TV is not just for older adults. Data shows that CTV addressable and MVPD addressable play complementary roles in reaching adults 18-49.¹

4 optimal use cases for addressable tv

1. Brands with low penetration target audiences
2. Brands whose linear television plans’ reach curves have plateaued and desire more efficient incremental reach
3. Brands that want to frequency cap high-volume, oversaturated TV viewers at the household level
4. Brands with limited television budgets or multiple audience targets/creatives to maximize impact

For full findings, download report here.

*In this context, the reference of Addressable TV is defined as MVPD addressable and the use of deterministic data or authenticated content experiences.

Source: 1. TVision, September 2023.

Our second annual Go Addressable event, Go Addressable 2022: Advancing The Future of Television on November 16th hosted a full house at Convene NYC and many more virtually, proving that interest is strong and the industry is excited to Go Addressable.

Key takeaways from each of our sessions below, and links to view the on demand experience. Please continue to follow us on LinkedIn and GoAddressable.com for additional insights into how we can collectively create a more addressable future.

Welcome and Opening Remarks

Matt Van Houten, SVP, Product, Business Development, and Sales Operations for DIRECTV Advertising set the stage by highlighting several key announcements reinforcing why 2022 was a big year for addressable TV:

• A joint study with Advertiser Perceptions finds 81% of advertisers are satisfied with addressable TV advertising (up from 72% y/y), while 41% of marketers not currently using addressable plan to start next year (up from 25% y/y)
• Go Addressable 2022 Accomplishments:
• Drove Momentum & Scale: the Go Addressable group surveyed its participating companies, confirming they’ve helped enable a monthly average of 53 billion linear advertising minutes since its inception in June 2021. (For context, there are more than 1.2 trillion minutes per month in linear advertising per minute, according to Nielsen.) All participants also indicated that inventory can grow with additional demand.
• Simplified: Established a simplified framework for addressable terms & guidelines across programmer & distributor inventories; Actively engaged measurement vendors like VideoAmp, iSpot and Comscore for comprehensive addressable measurement alternatives
• Engaged: Created 2 advisory councils to better align with our agency and programming partners

Keynote: The Media Ecosystem

Evan Shapiro, Media Universe Cartographer, provided a lively and unfiltered look at the ever-changing media ecosystem and where we’re all headed. Here’s just some of what he shared.

“The rate of change, has changed. The last two years accelerated the rate of change to a constant state. Change is no longer something you can schedule once a year at Go Addressable conference, it’s not something you can put into your offsite every quarter. It is now a constant rate of change. Disruption is the operating system of our ecosystem. There’s a number of different reasons for that.”

Addressable In Action: Buyer Perspectives

Kerry Flynn, Media Deals Reporter, Axios Pro, moderated our first panel, focused on agency leaders discussing the benefits of addressable, and where they see it going forward. Panelists included: Kelly Metz, Managing Director, Advanced TV Activation, OMG; Samantha Rose, EVP, Strategic Investment Lead, Horizon Media; Jen Soch, Executive Director, Channel Solutions, GroupM.

Key senior executives across the largest agencies and holding companies shared their thoughts and perceptions about buying addressable TV advertising today. Highlights include:

• Scale in the addressable space is growing with more impressions available and speed to market, a hurdle in the past, much improved
• Addressable isn’t just used for precision targeting any more, marketers are now using it to reach light TV viewers, increase unduplicated reach and even out impression delivery & exposure amongst audiences
• There is still education needed throughout the ecosystem in how addressable can help drive value for brands, but there has never been a more important time than now to make the dollar work harder
• Expect to see an explosion of programmatic addressable that will improve time to market & provide flexibility for the buy-side

The Future of Addressable Measurement: Solving for Cross-Platform Solutions

Howard Shimmel, President, Janus Strategy & Insights and datafuelX, sat down with key agency and data leaders to share their predictions of what the future of measurement will look like, offer best practices for marketers when evaluating measurement platforms, and discuss challenges & solutions in modern TV measurement. He was joined by: Lizzy Daly, VP, Head of Currency, Comscore; Helen Katz, EVP, Research, Publicis Media; Ross McCray, Founder & CEO, VideoAmp; Brad Stockton, SVP, US National Video Innovation, Dentsu.

Measurement is top of mind for everyone this year. In this lively conversation, senior measurement, data and agency executives discuss recent developments and share predictions of what’s ahead for the future of measurement.

• It’s important to set expectations at the front of the campaign on what is being measured & align measurement with targeting, execution and creative
• Understanding holistic reach & frequency across channels continues to be a pain point; continued interoperability and willingness to share data can help
• While there is heavy growth amongst FAST channels, without deterministic registration data, accurate segmentation & targeting can be limited
• Impressions don’t move product: as an industry, we should consider an outcome value mindset to measure success

Easy to Buy, Easy to Execute: Enter Interoperability & Automation

Chris Monteferrante, VP Product & Data Strategy, AdvancedTV Advertising, Spectrum Reach sat down with Brett Hurwitz, Business Lead, Addressable TV, Yahoo; Noah Levine, Head of Advanced Advertising Solutions, Warner Bros. Discovery; Adam Paul, Managing Director, Media Alliances, LiveRamp; Joanna Thissen, VP, Audience Solutions & Data Partnerships, OpenAP to discuss how we can continue to make it easier to buy and execute addressable TV at scale.

Without a single tech stack that connects all addressable inventory or audience platforms, how can the industry come together to make it easy? Senior executives across the largest programmers, distributors and advanced advertising platforms unpack today’s challenges and spotlight tomorrow’s opportunities around interoperability and automation. Key Takeaways include:

• The addressable marketplace involves some complexity, but with 10+ years of experience, MVPDs have already done a lot to simplify & streamline
• Programmatic is a great way to access linear addressable, programmer addressable and CTV addressable al in one place
• We can help addressable to scale by continuing to push for interoperability on the identity side, planning & execution side & measurement side
• If you’re not playing with addressable, you’re late. The future is moving towards fully being addressable

Enabling Programmer Addressable: A Fireside Discussion

Larry Allen, VP & GM Data & Addressable Enablement, Comcast Advertising, sat down with Seema Patel, TelevisaUnivision to discuss the realities of enabling national linear inventory. And bonus: they played a fast-paced, lightning round conversation covering the key themes, trends and takeaways from the day!

• Aside from the support of internal and external stakeholders, the key ingredients for a successful addressable business are:
1. Data: you need to connect the data pipes and move data between systems
2. Scale: when you’re evaluating a platform what are the ad opportunities associated with that platform; does the work and effort support the revenue goals?
3. Data Connections: make it easy for the buy-side to connect their data sets to yours
4. Automation: you need self service, automation for IO and campaign execution
• There are 3 core components that make the hispanic-focused customer graph powerful and valuable: data fidelity, making it easy for clients to connect to the data and scale.
• Today’s media measurement routinely undercounts the hispanic data-set, the reason is ethnicity is self-reported. Less than 6 out of 10 hispanic are included in 3rd party data-sets.
• As an industry, we need to continue to automate for faster, better SLAs for the buy-side and to measure outcomes.

Closing Remarks

Kevin Arrix, SVP, DISH Media, delivered the closing remarks, sharing some exciting things we can expect from Go Addressable in 2023.

What’s upcoming:

• Implement bold steps to make progress on video planning and measurement
• Work to accelerate and simplify convergence for CTV and linear addressable
• Deepen engagement with key industry stakeholders
• Increase education around both the benefits and applications of addressable television

Watch Go Addressable 2022 On Demand

The broader Go Addressable initiative, uses the following overarching definition of addressability:

Addressability encompasses video advertising experiences where a single message from an advertiser is matched to an advertiser-defined audience segment that shares one or more common characteristics. Addressability uses data and technology to enable targeting relevant messages to the qualified audience segment in adherence to business and consumer privacy compliance requirements.

It should also be noted that the term “Advanced TV advertising” is often used to encompass two different forms of advertising: one of these is Data-driven Linear, and one is Addressable. A comparison of the differences between the two is outlined below. Typically sold as two different products, with opportunities to combine for reach extension.

Data-driven linear

The ability to deliver commercials to high concentrations of an advertiser’s target audience through behavioral targeting and/or predictive modeling on a national basis.

Benefits

• Nationally serve media during certain networks and dayparts that most highly index against an advertiser’s desired audience
• Media distributed to full footprint maintaining national reach
• Understand both household reach and in target delivery

Addressable

The ability for different commercials to be targeted to different households on the same network at the same time.

Benefits

• Precisely serve media within brand-safe content while eliminating waste
• Optimize media to drive efficiency and effectiveness
• Understand effectiveness of media against brand KPIs via full funnel attribution
• Within the Addressable Category, there are two methods of delivery: Creative Versioning & Audience Addressable

For decades, marketers have used TV advertising’s mass reach to build brand awareness and preference. As its advertising capabilities have developed and continue to evolve, the role and value of TV advertising has expanded. It continues to support mass reach in a fragmented viewing environment. In addition, however, its data-driven and technological capabilities also serve more tactical lower-funnel marketing objectives including promotion and sales activation, as well as measurement and performance attribution. The evolution of TV planning from the use of age/gender proxies to the use of desired audience segments (e.g. Men 18-49 proxy versus households in the market to buy a truck) opens up the opportunity for advertisers to take advantage of new data-driven TV planning capabilities, known as advertiser-specific, audience-based planning tools. The ability to match anonymized aggregate household-level TV viewing data to a broad range of third-party data sets, or even the advertisers’ own data sets, makes it possible to develop TV advertising plans that are more likely to reach the intended audience.

• In addition, the use of more automated, audience-based TV planning, and more timely reporting, enables ongoing campaign optimization whereby campaigns can be updated based on how much of the advertiser’s target segment population is being reached with a desired effective frequency. In doing so, the ongoing TV campaign plan can be adjusted to deliver ads to the portion of the target audience segment that has yet to be reached with sufficient frequency. Given that TV viewing behaviors and the density of the advertiser’s target audience segment may have significant differences across various local geographies, many advertisers are benefiting from doing audience-based TV planning at a market, or even more local geographic level, either as a complement to a national TV ad campaign, or as a stand-alone locally-focused TV advertising campaign.
• Last, and perhaps the most important addressable TV advertising capability, is the ability to measure down to the household level, for more precise campaign measurement and performance attribution. Measurement also makes it possible to derive more relevant insights relative to campaign effectiveness and its impact on business performance, within and across both traditional and addressable TV advertising. Such insights can then be used to better allocate, adjust, and align the various components of an evolving media mix to the marketer’s desired objectives.

As a result of these advancements, addressable TV plays a new and evolving role within the overall TV advertising mix, and can assist in driving marketer’s objectives throughout the entire purchase funnel.

Each addressable enabled device (STB, Smart TV, Web or Mobile) that will be part of an addressable TV solution must be able to detect an upcoming ad spot/break via a standard “ad break” message. The standard message utilized to detect these Ad Breaks are inserted by the content provider in their video streams, and are defined either by the SCTE 35 protocol or OAR Watermark. These messages, when properly inserted, identify the specific video frame that begins an ad break (or an ad position), and thereby enables the receiving device to call an Advertising Decision System (“ADS”) for instructions. In turn, the ADS will provide instructions to the device for that ad break/position, which may include retrieving/inserting appropriate ad(s), and reporting status of playout back to the ADS.

Historically, the industry has adopted a “defacto” standard implementation of using Splice Insert messages (“Type 5”) to identify the start of a distributor break. Recent versions of the SCTE35 standard have provided for a broader and more informed message set. The SCTE35 messaging standard now provides mechanisms for identifying and distinguishing both Provider (e.g. “Programmer”) and distributor (or “local”) ad opportunities. These newer messages are sometimes referred to as “Type 6” or “Time Signal” messages.

Many programmers are starting to implement Type 6 messaging to identify their ad/break positions, while still identifying distributor breaks with Type 5/Splice Insert messages. This is because all existing legacy ad insertion gear is based on the Splice Insert messages. It is important to note that while SCTE35 provides a messaging standard, the implementation of this standard can vary significantly across programmers. This presents a challenge at the receiving device, which can be mitigated by “normalization” by the distributor.

02 Condition Signals

To use the new messaging and to efficiently design receiving devices capable of Dynamic Ad Insertion on BOTH distributor and programmer inventory, one approach is to standardize the signals at the distributor’s content ingest point. This is done with a Signal Processing System interfaced to the transcoders that are processing the content. This is also referred to as “conditioning” the signals.

The signal processing system acts on both distributor and programmer SCTE35 signals, and alternatively with watermarks for smart TVs, to provide a consistent messaging across all networks and all inventory. For Distributor ad breaks, the Splice Insert/Type 5 message are converted to Time Signal/Type 6 messages. For Programmer ads/breaks, the messages are made consistent with the distributors implementation of SCTE35. This might involve changing the “sub-type” of the message, the payload, or other characteristics of the message.

So, when a receiving device receives these conditioned signals, it is able to determine that an ad/break is approaching, whether it is programmer or distributor ad/break, and call the appropriate ADS (Programmer or Distributor) for an Ad Decision, applying any rules (if desired) based on the message contents.

In order for the devices to receive the appropriate ad content in the case where the ADS instructs the player to insert a different ad than is on the incoming programming, the Content Management System will need to have already ingested/transcoded the ad(s) into the various formats supported by the receiving devices in order to receive the ads. The Content Management System job is to push the ad to the Content Distribution Network (CDN), manage and maintain the content metadata, including the location/URL’s and provide status to the Ad Decision Engine (ADS) that the ad copy is available on the CDN for delivery to devices.

03 Create Audience Segmentation Files

Distributors and programmers will need tools that will identify the audience targets and create segmentation files. These files can be a combination of third-party data and/or subscriber information which may include geographic campaign reach information, as well as demographics and other target segment audience attributes. This information will be utilized to create Audience files which can then be provided to the ADS in order to make targeted placements (an addressable decision).

Distributors and programmers can directly integrate into agency and advertiser CRM systems to drive efficiency and speed in the audience segmentation creation process. (See Matching in Section One for further clarification.)

04 Prepare Inventory for Addressable Insertion

Deploying this addressable advertising capability in the existing environment of Linear/schedule based ad insertion (distributor/local inventory) requires a mechanism for identifying specific spots to be addressable within the existing linear ad insertions schedules. That can be done by using the traffic and billing systems to dynamically place a certain identifier in the Spot ID (for instance, a pre-determined prefix) or by adding metadata (e.g. order ID) to the schedule files provided to the ADS.

For the programmer use case, some mechanism must be devised between the programmer and the distributor to match a certain signal to a specific ad or campaign. This might be done with information in the SCTE35 (e.g. “POID”, or Ad ID), and might be supplemented with some “Out of Band” information exchange (e.g. match a certain POID or set of POIDs to a campaign), or may leverage the watermark in the creative being replaced by an addressable advertisement. This will require some new capabilities and alignment on the best approach to implement.

05 Deploy a Service Assurance Network

Distributors/programmers will need to agree on service assurance models that will be used to ensure that the addressable TV solution is adequately performing within an environment. These models, an agreement on how distributors/programmers will utilize and collect telemetry and operational data will need to be reviewed and agreed upon so that distributors/programmers can determine how they feed this data into automated monitoring and reporting tools to provide insight to management on how the addressable TV solution is performing.

06 Implement Business Intelligence Reporting

Programmers and Distributions will need to provide some form of reporting dashboards to advertisers. These reporting metrics can inform clients on forecasting, how campaigns are performing and pacing, billing and verification data.
Moving forward, there needs to be standard “Cap & Edit” rules for consistent verification of campaign delivery.

Below are some examples of vertical business impact solutions that use addressable TV advertising capabilities:

Media & Entertainment: TV Network Client

Situation: National TV network launching a new hour drama on Thursday.

Action: Identify an audience segment based on viewers who a) watch the top 10 dramas on linear TV; b) watch in prime time on Thursday. In addition to a broad linear TV campaign, the client added linear addressable and VOD addressable to boost conversion rates and increase frequency to the defined target audience. This would run leading up to the airing of the program, and the 7 days post the program launch (within the C-7 window).

Results: Used measurement to determine the lift in tune-in. Conversion rates for the addressable target segment were substantially higher than both targeted and non-targeted audiences reached only via the traditional linear campaign.

Automotive: Tier 1 Auto Client

Situation: Major Original Equipment Manufacturer (OEM) importer supporting a new vehicle launch.
Action: Supplemented national media campaign with an addressable TV campaign to target an audience segment of purchasers of competitive models based on data supplied by a third-party provider.

Results: Determined that the addressable TV campaign increased reach of the target consumer segment by double-digit growth as compared to the target reach achieved by national media.

Travel: National Travel Services

Situation: National travel brand promoting loyalty card signups.

Action: Identified audience segments based on past purchase history, defining high / medium / low usage segments, using client sales data.

Results: Measured via a post-campaign report using client data on card signups. Compared rate in the test vs. control group and measured lift.