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Addressable TV Advertising for Local Broadcasting: We’re Getting Closer

July 12th, 2018   ||    by Callie Wheeler   ||    No Comments

For marketers and advertisers, addressable TV advertising seems more attainable than ever. Its promise of personalization is alluring, the technology seems within grasp, and brands are continuing to invest. Addressable TV may be on the rise, but is it the right fit for you?

First Things First

Considering how many terms we’ve added to the advertising dictionary over the last decade, what exactly is addressable TV advertising? MarTech puts addressable TV under an umbrella of “advanced TV,” including programmatic buying and OTT media. The concept is simple and something marketers and advertisers well-versed in digital will find familiar: the ability to deliver TV ads to specific households based on predetermined targeting parameters.

As most brands can tailor advertising efforts in their sleep, it comes as a surprise that Marketing Dive found only 53 percent of marketers plan their digital and television strategies together, implying that nearly half do not approach the two as facets of an omnichannel marketing strategy. What are they waiting for? Perhaps they’re waiting for addressable TV advertising to catch up with digital’s scale.

The State of the Industry

Which begs the question, what does that scale look like today? While investment in addressable TV has been increasing steadily, a recent ANA/Forrester survey found that 15 percent of the Association of National Advertisers’ members are already including addressable in their plans, with another 35 percent experimenting. These numbers take the technology from a future possibility to a present reality, with half of the industry already assessing, testing, and implementing it.

Before addressable TV truly takes hold, however, there are a few parameters that need to be addressed. These include ATSC 3.0 gaining a strong foothold, technical inconsistencies between MVPDs/STB providers, and industry buy-in on the buy and sell side—among others.

Is Addressable Advertising Right for You?

There is a good chance your brand is already using or testing addressable TV advertising. But if you’re not, how do you know whether it’s a good fit for you? One facet to consider is local advertising. According to Marketing Dive, addressable ads—once only available on cable and satellite—were approved for local broadcasting last fall by the Federal Communications Commission. If your brand invests in regional campaigns, launches products in markets at different times, or is interested in testing new messaging in a smaller area before going national, addressable TV through local broadcasters could be an asset.

Another consideration is your organization’s agility and openness to testing. As the market increasingly matures and grows in scale, it is likely inevitable that this will be part of the advertising ecosystem. But for organizations willing to test and improve, there is the opportunity to be a market leader through early adoption.

Wherever you are in your journey to addressable TV advertising, there is clear growth in demand—stay tuned to see how brand leaders leverage better TV targeting.

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