Assessing the Potential of Addressable Linear TV Advertising
Traditional linear TV places the same ads in the same shows (“program targeting”). Addressable TV can place different ads in the same show, allowing “audience-based” targeting at the household (HH) level. To determine the incremental lift achieved by audience-based targeting, we need to measure outcomes at the individual (HH) level. This allows us to run what/if scenarios with the models to determine optimal targeting. The researchers analyzed second-by-second viewing data from a panel with 750,000 HHs, tracking exposure to focal and competitor ads. The fact that advertisers tend to mainly target consumers already likely to buy creates potential endogeneity. The analyses controlled for this and three other factors: heterogeneity in ad avoidance; activity bias; and seasonality and other trends. During the observed 15-month period, there was a 4.1% conversion for those HHs in the market for the focal offer.