The TV ecosystem is entering a new paradigm: The shift to addressable

There are several strong themes around the new TV ecosystem, but the one that stands out is addressable TV.  While the power of TV to drive advertising impact is greater than ever, addressable brings the best of linear and digital television, such as audience targeting through the most impactful mass media, while offering a hybrid, innovative and flexible environment. People in the five biggest European markets watched an average of three hours and 48 minutes of TV per day in 2017, and  81% of Europeans aged 15 years and older are reported to watch every day. It’s time for the industry to complete its convergence between traditional TV viewing and online content.

Addressable TV has advanced in the US and the UK. In the US, for example 43 million households have adopted addressable TV. This growing interest makes it appealing for every market.

Addressable TV will create a new shift in the way media is sold – the biggest change since the arrival of programmatic. In 2019,  it will open the door of TV to a new segment of advertisers, who will be able to target a niche audience at any time. Traditionally in TV, each programme has been strongly associated with one specific audience – the main one – and advertisers would target this specific audience. In the coming months, an advertiser, on the same programme, will be able to target sections of that audience, which was previously not possible because such segments were considered too small and not profitable enough. This creates a real opportunity for smaller advertisers as campaign costs will become more affordable.

With addressable TV’s entry into the market, it’s not only broadcasters that will have to adapt but the whole industry: telcos, technology partners, etc. We have already seen discussions between operators, and we should be looking towards defining a common language, accepted and used by all as we move into 2019. While the industry works on this alignment among key players, we will see the progression of existing initiatives from local broadcasters in order to test and learn by different means, such as Salto in France and ProSieben in Germany.