By Clare Woodvine, UK Data Product Lead, Acxiom
Data is revolutionising the way brands interact with audiences on television screens. As digital TV continues to evolve, data-driven targeting empowers advertisers to cut through the clutter and deliver highly relevant, measurable campaigns. The traditional one-size-fits-all approach to television advertising is giving way to a more personalised, dynamic, and effective model.
The lines between digital and traditional TV are blurring, ushering in an era where the agility and precision of digital marketing can meet the scale and impact of television.
From streaming platforms to smart, connected TVs, this transformation is not just about tech upgrades, it’s about fundamentally altering how brands communicate with consumers through television.
How ads are changing mid-programme
Advanced technology platforms are now enabling channels to seamlessly integrate and leverage data to power and meticulously measure advertising campaigns.
Real-time data analytics, sophisticated predictive modelling and programmatic ad delivery empower digital platforms to dynamically tailor ad experiences based on intricate viewer behaviour and deep insights. This significant shift towards performance metrics ensures that streaming services can offer cutting-edge digital advertising solutions that are both efficient and effective.
For instance, consider a scenario where a brand is launching a campaign for a new fitness product. If the brand identifies a marked increase in interest among younger demographics during a televised sports event, streaming platforms can swiftly prioritise and rotate relevant fitness-related ads during that content, refining placements based on live feedback and audience interaction.
This capability provides brands with the crucial flexibility to adjust their campaigns quickly and cultivate deeper, more meaningful connections with engaged audiences. The immediacy and responsiveness of this approach could represent a major shift from traditional TV advertising models.
Ads are becoming shorter and more dynamic
Addressable TV technology has instigated a revolution in TV advertising, enabling the creation of shorter and non-traditional ad formats designed to maintain and enhance viewer engagement. The era of lengthy, passive ad breaks could well be fading.
The dominance of platforms like YouTube, TikTok, and Instagram Reels has popularised shorter, more dynamic and often interactive advertising formats. TV advertising is now following this trend, with interactive and shoppable ads becoming increasingly commonplace. These ads enable viewers to engage with content directly, such as clicking to access additional information, scanning QR codes for special offers and ultimately making purchases within the viewing experience.
This interactive element transforms television from a passive medium to an active engagement platform, changing the consumer’s relationship with advertising content.
How Channel 4 is leading the way
The transition from linear and traditional TV to digital and streaming platforms unlocks a range of new possibilities for addressable advertising, extending far beyond conventional contextual placements.
Streaming viewers are typically registered users, providing platforms with a wealth of valuable first-party data. This data enables highly precise targeting based on individual viewing habits and preferences. As streaming services achieve mass-market penetration, they offer advertisers a highly sought-after combination of precision targeting and broad scale.
Channel 4, for example, has unveiled an ambitious strategy to accelerate its transformation into an agile, digital-first streaming service. This strategic move is in direct response to the generational shift in TV viewing habits and aims to position Channel 4 competitively within a landscape dominated by global entertainment conglomerates and social media giants. A fundamental aspect of this strategy is leveraging the substantial value of registered subscribers.
By connecting with highly relevant audience segments on their streaming platform, Channel 4 can offer advertisers incredibly targeted access, positioning itself as a formidable competitor to other digital advertising channels. This ability to deliver highly targeted advertising while reaching a significant audience is a game-changer in the industry.
New ways to target audiences
This demand for highly targeted advertising means audience insight solutions are evolving beyond the traditional lifestyle, demographic and behavioural segments long used by brands to define audience segments.
These third party audience solutions have developed to the point where brands are now able to leverage ethical, privacy-enhanced consumer purchase data to hone in on their specific audiences. Such solutions give brands full coverage and enable them to create robust audience segments tailored to their specific needs, based on brand level spend across categories such as travel, retail and delivery services. These are particularly valuable to publishers because they can connect brands to their own and competitor customers without the need for first-party data.
At Acxiom, we’ve observed a significant surge in the use of data to define and target TV audiences. This powerful blend of audience engagement and precise reach positions streaming TV as a pivotal channel for brands seeking to optimise their advertising expenditure and forge meaningful connections with viewers.
Platforms with predictive data insight and technology central to their TV advertising solutions are well placed to advance in the sophistication of ad targeting and personalisation as AI takes hold, which will enable them to keep up with other channels in the future.
