What Is Addressable TV Advertising? Everything You Need to Know

You’re likely familiar with traditional TV advertising. In the past, traditional TV advertising was one of the best ways to reach a targeted audience. It allowed companies to reach consumers through their favorite programs at certain times of the day.

However, today’s TV advertising offers even better opportunities for reaching consumers likely to purchase your organization’s products or services. It’s possible to target specific members of the same household, showing the ad only to those most likely to be receptive through addressable TV advertising.

In this article, we’ll explain what you need to know about reaping the benefits of addressable TV advertising.

Addressable TV Advertising: A Definition

Addressable TV is a form of television advertising designed to reach members of a specially targeted audience. With a combination of first and third-party data sources, you can target ads for an audience based on their age, sex, income, interests, and viewing habits.

With the right tools, companies can set parameters for their ads, ensuring that they show them only to relevant audiences. Addressable TV offers much more opportunities for personalized advertising than traditional TV can.

Benefits of Addressable TV Advertising

One of the biggest advantages of addressable TV advertising is the return on investment (ROI). You’ll spend much less to reach your customers than you would using traditional TV advertising while also seeing far more conversions. 

With the data you gather from a consumer’s interests and demographics, you can show your ad only to individuals most likely to benefit from your products or services. Targeting your ads reduces the chances of wasteful spending on advertising that doesn’t deliver results.

Another benefit of addressable TV is its reporting potential. Addressable TV offers reporting capabilities similar to those of a PPC ad. You’ll be able to track how many people saw your ad and those who decided to take a further step, such as visiting your website or buying your product.

With more information to analyze the performance of your ad, you can better optimize it for your audience, further increasing the future ROI of your marketing campaigns.

Limitations of Addressable TV Advertising

Despite the numerous benefits that addressable TV offers, it does have a few downsides.

First, unlike other digital marketing channels, people can’t directly click on your advertisement to visit your website or make a purchase. They’ll need to take further action, such as looking up your business online or visiting your in-person storefront. 

To better monitor the results of your addressable TV advertising, you’ll need to include a CTA containing a promo code or another identifier to track conversions. For instance, you might give viewers an easy-to-remember discount specifically attached to the addressable TV ad.

Another limitation of addressable TV is integrations.

Companies looking to reap the most benefits from addressable TV need to use an omnichannel marketing strategy that connects the consumer through other marketing channels, including email, social media, and internet browsing. Integrations are very effective, but they can increase marketing costs.

Successful Addressable TV Advertising

Not all companies will realize significant benefits from addressable TV. For instance, an organization with a tiny niche audience would see more results from other advertising strategies, like PPC ads or social media. 

According to CTV statistics, the most effective addressable TV ads include consumer electronics, fast food, beer, candy, and soft drinks. These are memorable to consumers because they reflect what the individual is most concerned about when watching CTV — their device and their snacks.

If your company produces products in these areas, you’ll likely see higher conversions from your ads than organizations in other market sectors.

However, the types of products and services you offer aren’t the only criteria that impact your campaign results. You’ll want to ensure that your video is enjoyable to watch and addresses a specific problem your audience has that your products can solve.

Remember, if your content isn’t entertaining, your audience won’t watch it. Instead, they’ll turn to their smartphone or head to the kitchen to re-up on snacks. It’s your job to keep them glued to their seats for the 15 or 30 seconds your ad plays.

If you’re successful, you’ll see high conversion rates in the minutes and hours following the airing of your advertisement.

Addressable TV Can Improve Results from Your Advertising Campaigns

Addressable TV provides a powerful platform to reach customers while they’re comfortable streaming their favorite TV shows or movies. Marketers can significantly enhance their advertising campaigns by using this effective medium. To realize the full benefits, craft an entertaining video and properly target your desired audience.