Addressable TV has been around for several years, with companies offering better and more detailed audience data. This has led to advertisers to be able to better target their audience which helps with engagement and is more cost effective.
With traditional TV in a decline, streaming services and addressable advertising is the way forward. Here are 6 reasons why addressable advertising is the future of TV commercials.
1. Reaching Customers Increases
When you think about advertising for your business, you want to get the maximum reach for your money.
By using non-linear means of advertising such as VOD (Video on Demand), you can reach more people and so get more for your money.
This is partly because you have more flexibility with a non-linear solution compared to linear TV Channels.
2. Real Feedback on Ad Campaigns
When looking at linear addressable advertising on TV it can be hard to measure when it comes to the success of your ads. It can also be hard to target specific areas or groups.
However, with non-linear channels, you get feedback on who watched it and when. There is also more data that you can look at to assess the success of a particular campaign.
3. Increased Cost Effectiveness
With the decline in traditional linear TV viewers, the gap between costs compared to AVOD has narrowed significantly.
It is now harder to target a specific audience on linear TV, and you need greater numbers of viewers to make it cost-effective.
4. Greater Accessibility for All
One of the ways that addressable advertising is helping is through its accessibility. Smaller companies and brands are now able to access increased data and therefore target their brand demographic in a stronger way.
These smaller companies may never have been able to use traditional TV advertising before due to cost and not being able to target their audience.
5. More Effective Brand Building
One of the most difficult things for new companies to achieve is building their brand. However, with addressable advertising, you can be sure that you are reaching only those that will be your target market.
Not only will this mean your customers will be exposed to your brand more often, they will also be able to receive targeted information.
6. Test and Repeat if Needed
Companies have to be able to experiment a little with the target of their ads. Addressable advertising gives companies the chance to set aside some money to test the waters and see what works.
Once companies have a better idea of who their ads are reaching, they can then embark on a larger ad campaign.
The data that they use in the test phase can come in useful for similar campaigns for related demographics. However, future testing will be needed in this ever changing environment.
Final Thoughts
So, there you have it – 6 reasons why addressable advertising is the future of TV commercials. The TV commercial world is changing and will continue to change in the future. For those companies that want to maximize their impact, addressable advertising is going to be the key to their success.
