Addressable TV is one of the fastest growing marketing concepts that uses data to make informed TV media buying and placement decisions.
The approach has huge potential to bring big changes to the TV media buying and selling community. Addressable TV advertising is about delivering a unique message to specific households who are watching the same show at the same time. In total, there are about 48.5 million U.S. homes enabled for addressable TV ads today.
Medicx Media Solutions offers advertisers a unique audience data targeting solution for addressable television. Data and technology are driving enormous change in the structure and economics of television. Our solutions for the changing ecosystem of television include:
- Addressable TV: the ability to send a specific commercial to one household and not another.
- Hyper-Local TV: the ability to insert a television commercial directly to a specific ZIP area through set-top boxes.
Addressable TV Primer
Addressable TV is sight, sound, and motion content – i.e. video – and accompanying advertising, that is delivered by means that go beyond the typical capabilities of traditional TV, or, what is often now called "linear TV."
It is television that is often delivered as a blend of "traditional" first screen TV experiences with interactivity, targeting using advanced analytics, and TV everywhere enhancements. It is video media that takes the best of television and combines it with what historically have been the best capabilities of digital advertising, such as one-to-one targeting and interactivity.
Or, put another way, Addressable TV is "Everything that is TV but isn’t like TV as we’ve always known it." It is probably best defined by using all the examples of what the term includes: iTV (interactive television), targeting advertising at the household level based on more accurate demographic data than traditional TV afforded, advanced targeting beyond demographics from combined behavioral and viewing habit data pulled from the set top box, addressable TV, multi-platform/multi-screen content and ad delivery, OTT (over the top), which is anything that comes to the viewer by means other than through the MVPD (multichannel video programming distributor), VOD, connected televisions, and TV that is sold and bought programmatically.
More importantly, what makes Addressable TV particularly compelling for just about any brand advertiser are these three (3) key differentiators from what linear TV could provide:
The kinds of technology that have made native-to-the-internet display and video advertising so compelling from a data and delivery standpoint are also what deliver Addressable TV. The addressable technology of Addressable TV makes that reach and scale more relevant to that audience when and where they are found.
The technologies powering Addressable TV enable richer experiences for viewers to engage with content and advertising. Interactivity itself can be part of an Addressable TV advertising experience, allowing viewers to have a brand experience beyond just being a passive receptor of the brand’s messaging. Richer data return on what audiences are choosing helps further reinforce the addressability of the platform.
The data returned from an Addressable TV execution offers advertisers more effective and meaningful measurement of campaigns than ever have been available via traditional TV. Brands can achieve more certainty that they are reaching their audience effectively, and gain insight into those audiences’ usage, engagement, and in some cases, influences to purchase.
As we have seen in the digital space now for 15 years, these data-driven insights feed back into the beginning of the cycle, contributing to an iterative process of media optimization and improvement, helping advertisers target, reach, and engage their audience more and more effectively over time.