TV Advertising is Going Digital

We are living in a digital world. So, it’s no surprise that television is going digital with its advertising venues. Why it should matter to you is that you will have the opportunity to more specifically target your TV ads and make them addressable. In other words, you will be able to target a television ad to specific households with user data based on your product or service.

Do you need addressable TV ads?

The short answer is, it depends.

For mass marketers of items such as toothpaste or toilet tissue, it might not be important. For niche products that serve specific consumer needs, it might be a very big deal.

Once, age and gender were the two most important factors in determining what television programs to advertise in. For products or services with wide appeal it was pretty cost-efficient as well as effective. Marketers of niche products most likely were wasting a lot of ad dollars on reaching people who would never be interested in their wares.

TV Tipping Point

Tom Eaton, SVP, Programmatic & TV Solutions, NCSsays “linear TV has been the bedrock of most national campaigns for decades. But addressable TV campaigns promise to do even more by reaching only known buyers and enticing them to buy more.” But currently it’s estimated that only about 10% of total television advertising buys are digitally addressable.

AT&T believes addressable television ads will be so in-demand by advertisers in the future, it drove them to acquire Time Warner last year for $85 billion and gave them a wide variety of content to monetize.

The television industry knows it needs to innovate, so it doesn’t continue to see its viewers leaving commercial television for ad-free offerings.

More Cost-Efficient TV Advertising

At a time when television advertising costs are escalating and audiences are shrinking, addressable ads are a way for smaller advertisers to enjoy the benefits of TV advertising at a price point they can afford. For the television industry, it opens their advertising services to more businesses.

At Rosenberg Media we’re keeping our eyes on the next big things in advertising, and marketing and addressable television ads are in our top 5 things that bear watching.