In the past, reaching the right audiences through linear TV ads primarily depended on educated guesswork. But with addressable TV, buyers can target audiences with more accuracy and precision on both linear and advanced TV. Let’s break down what addressable TV is, when you should add addressable to your strategy, how a campaign is measured, and how to know if addressable is the right fit for your campaign.
What Is Addressable TV?
Addressable TV is an advertising approach in which advertisers serve different ads to different audiences based on which ads are most likely to resonate with those audiences. Addressable TV can take place on linear or advanced TV (all other means of delivering content via the internet).
For a linear example, let’s say two people are watching a primetime ABC show. One is a 45-year-old woman in Indiana, and the other is an 18-year-old man in Los Angeles. Addressable TV would mean each person likely gets a different ad — with each ad addressing a particular audience.
Of course, the same applies to digital options such as CTV. The advertisers could also target two households watching a show on Peacock differently based on their location or other characteristics such as age and gender related to their household.
How Does Addressable TV Work?
Addressable TV relies both on a wide array of granular data for audience segmentation and on sophisticated ad delivery systems to ensure the right ads reach the right audiences.
To segment audiences by age, gender, income, lifestyle, and viewing habits, buyers can use data from cable or satellite set-top boxes, subscriber information, and third-party data providers. Sophisticated ad delivery systems then use this data to match the right ad to the right viewer. Personalized ads can be delivered in real time or pre-scheduled.
When Should You Add Addressable TV into Your Strategy?
Addressable TV is helpful when you want to customize a campaign to different audiences.
For example, on linear, if you want to reach viewers of a primetime program with tens of millions of audience members, the audience will likely be diverse, and you’ll want to cater to distinct audience segments. On advanced TV (all TV options other than traditional linear), addressability is almost expected, as one of the prime advantages of digital options such as CTV is the ability to target ads like advertisers do on other digital channels.
Addressable TV is appropriate for advertisers who want to show the most relevant ads to each household within a diverse audience.
How Is an Addressable Campaign Measured?
Most addressable TV advertising platforms have built-in attribution features.
That means that buyers can evaluate the effectiveness of their campaigns with key performance indicators like:
- Reach: the number of unique households viewing an ad
- Conversion rate: the percentage of households that took a desired action after seeing your ad, like completing a purchase or signing up for a service
- Return on ad spend (ROAS): revenue generated by the ad campaign divided by total ad spend
Is Addressable TV the Right Fit for My Campaign?
Addressable TV is best suited for buyers looking to bring together the storytelling power of traditional TV, precision, and the measurement capabilities of digital.
Reach out to FreeWheel today to learn more about how addressable TV can drive results for your advertising campaigns.
