In decades past, television and radio commercials were the prime forms of advertising, and though they haven’t completely disappeared, new forms of advertising, including digital marketing, have certainly soared past them in terms of popularity and widespread use.
The traditional TV commercial airs linearly across all households tuned into the same channel. It’s a relatively unobtrusive way of reaching customers, even if it interrupts their favorite television show or the nightly news, but a conventional TV commercial lacks the depth and personalization that other methods — namely addressable TV advertising — offer.
Understanding Addressable TV
Addressable TV is a form of advertising that seeks to better target audiences that are most likely to be receptive to the ad in question. Instead of showing the same commercial to everyone streaming the latest episode of Stranger Things, for instance, using an addressable TV ad segments the audience according to its demographics, location, and behavior.
For instance, if you’re streaming your favorite show from Dallas, Texas, you might be more receptive to an advertisement from a local restaurant. You’re probably not going to be as interested in a commercial for a sporting goods store in New York City simply because you’re not in the same geographic location.
Addressable TV aims to overcome the limitations of traditional TV advertising and help marketers strategically reach people whose criteria align with the brand creating the advertisement.
How Addressable TV Works
Addressable TV thrives on customer data, and marketers can easily collect data on customers who watch via connected TVs (CTV), devices that are connected to the internet. Their viewing habits and browsing activity on other devices combine to provide advertisers with the necessary information to build profiles on each household.
Companies that employ an omnichannel marketing strategy can access the most customer data, gathering information about the individual’s habits across various platforms, including social media, email, and website browsing, to better understand their audiences. They can then create ads designed to reach their targeted audience using that information.
As such, there’s less wasteful spending on advertising that doesn’t appeal to specific consumers. Instead, companies are able to show ads to people that are most likely to resonate with them and take further action. Studies show that addressable TV’s growth is significant. In the fourth quarter of 2022 alone, CTV statistics indicate a 69% increase in viewer reach over 2021.
Reach More Customers Through Addressable TV Advertising
You’ll need an effective strategy to reap the benefits of an addressable TV ad campaign. Consider the following steps:
Determine Your Objectives
Firstly, you must understand the goals that you seek to achieve through addressable TV advertising, as not every company will benefit from this particular advertising channel. For instance, companies in the business-to-business (B2B) industry/sector may not see the same benefits as an e-commerce retailer selling women’s clothing.
Your objectives can fall into a few categories: generating brand awareness, attracting new leads, or even upselling existing customers. You’ll also need to figure out how much you’re willing to pay for each conversion.
Identify Your Target Audience
If you’ve got an existing pool of first-party customer data, you’re in a prime position to begin addressable TV advertising. You can rely on that data to reach existing customers and individuals that are already familiar with your company.
However, you don’t have to advertise exclusively to those who know your brand. You can use your data to assess critical factors about your ideal audience, such as their behaviors, demographics, and locations.
Create Your Ad
The most important part of your addressable TV ad is the message you intend it to deliver. You’ll want to create an engaging advertisement that speaks to your customers, and if your ad isn’t entertaining or fails to address their pain points, it’s unlikely to result in any action being taken.
You’ll also need to consider the technical aspects of your ad. Addressable TV requires videos to be between 15 and 30 seconds in length, with a minimum bitrate of 5,000 kbps and a widescreen, 16:9 aspect ratio.
Define Your Campaign
Most people won’t remember an advertisement the first time they see it. It takes a few repetitions to sink in fully. Before you run your ads, you should define how often you plan to repeat them and whether they’ll be shown to the same audience. Of course, you want to balance generating brand awareness and being overly domineering with your ads as well.
Addressable TV Can Grow Your Audience
With addressable TV advertising, expanding your reach to the customers that are most likely to interact with your brand is not just achievable but easier than ever before. You’ll have better control over who sees your advertisements, and with the right strategies and brand message in place, it will be possible to extend the depths of your advertising to reach individuals most likely to identify with your company.