Seems like addressable/advanced TV advertising has existed in a whirlpool of doubt, alongside the promise of better business opportunities. Now, however, the latter is getting a bigger profile.
The upside: addressable TV advertising has now achieved decent scale — around 65 million homes out of a total of 120 U.S TV households. The downside: cost, accessibility, and some consistent data metrics remain.
Research shows the results are there. First, addressable advertising does eliminate a lot of waste. And that begs the second question: Will advertisers now spend, say, four times more CPM (cost per thousand viewers) in order to deliver advertising specifically to that better, targeted audience?
Even if that isn’t a hurdle, there are other concerns. That includes a number of different multichannel video program distributors/sellers — such as DirecTV, Dish Network, Comcast Corp. Charter Communications and Altice USA — which can have different functionality when serving those ads. In addition, different cable and satellite TV providers show that not all addressable homes are created equal, especially as it relates to specific consumer data preferences aligned in those homes.
Against all this is a recent survey of some 500 media-marketing senior executives (who spend $1 million or more in TV and digital video ad spending) by AT&T’s Xandr, its advanced advertising unit, which shows trepidation.
While 76% of media agencies and marketers believe media sellers efforts offering advanced TV advertising platforms is a good idea, 48% say it is “very difficult to fully fund my media budget in order to achieve my media strategy goals.”
Also, 44% say “my current media buying-planning infrastructure is dated and not up to the task of effectively operating in the new media landscape.” Marketers and media agencies are leery about which direction to go.
When will marketers give addressable a bigger chance? Or will they give more dollars to digital?
Source: Friedman, W. (2018, December 27). Where Does Advanced TV Advertising Fit in 2019? MediaPost.
Editor’s Note: Commentary on Advanced TV from MediaPost’s Wayne Friedman.