By Thomas Jones, Senior Manager, Solutions Engineering, Xandr
Addressable TV advertising represents one of the largest opportunities for advertisers today, as it combines new dimensions of targeting on the big screen with the best of digital and linear TV.
Over half of UK households now access content with a Connected TV or another streaming device according to the Broadcaster Audience Research Board (BARB), which in turn is fuelling the growth of a diverse range of AVOD and SVOD services. For brands, the barrier of entry is lowering and although access is fragmented across different device types and platforms, there are many opportunities available for advertisers to deliver their message alongside professionally produced, broadcast-quality content. So, how can advertisers unlock growth within addressable TV?
Consumers in the UK now have access to an incredibly diverse range of ad-supported content, which is available from a variety of channels and applications. For example, CTV-first publishers such as Pluto and Rakuten are joining the traditional broadcasters offering CTV delivered content through their own platforms.
With the precision and data points available that can enable household-level targeting within on-demand content; addressable TV advertising means that brands of all sizes, including those with smaller budgets, no longer need to make the same large-scale investments in creative production and media that would normally be associated with a nationwide linear campaign.
Due to this, digitally native and direct to consumer brands have embraced addressable TV advertising. This is because they are able to access audiences available at a household level using first and third-party data points in order to deliver relevant advertising messages and drive results for a variety of outcomes. Experienced TV advertisers that already make use of the scale and reach of traditional linear buys can extend reach into streaming and on-demand audiences; whilst brands that are completely new to TV are able to define high-quality bespoke audiences with a fully addressable strategy.
Relevant messaging and segmentation
High-quality creative copy sets big screen television apart from other digital video channels, many CTV-first publishers support creative length of up to 30 seconds within an ad-break, this provides brands with the space and time needed to explore and test to find the most effective creative messages.
By identifying bespoke audiences and moving beyond broad demographics to more refined targeting criteria, brands can tailor a creative message per a particular audience. Whilst the hyper-local targeting and personalisation that is typically associated with other digital channels is not possible, households can be targeted using signals and data points enabled by ad-tech. This could include geography, lifestyle, income level.
Despite advances in targeting, measurement and lack of standardisation still represents a major hurdle for the UK market. Even with increased collaboration amongst industry players there is still pressure from advertisers to deliver proof of performance and quality. Initiatives however are emerging to provide the first set of standardised solutions which will deliver a significant milestone.
As video only continues to grow, now is the time for advertisers and publishers to lean into this channel and ensure they are ahead of competitors to unlock growth within addressable TV.