Five Signs Your Brand is Ready for Addressable TV
If you’re reading this article chances are you are already familiar with Addressable TV and may be considering testing it. For those of you who are still familiarizing yourself with the emerging technology:
Addressable TV is the marketing practice of using analytical profiling and segmentation to advertise your product or service to targeted households. The marketplace consists of 50+ million households which are comprised of subscribers from several cable and satellite providers like DIRECTV, DISH, Comcast, Cablevision, Time Warner Cable, and more.
Below are a series of statements that can help you determine if addressable TV campaigns are right for you.
1. Your product or service is niche or semi-niche.
It makes sense eliminating a large percentage of households that may not be in the market for your product or service.
2. Your target audience is large enough to justify addressable TV.
Many providers have a minimum threshold for addressable campaigns. Companies like DataLab can help you determine the size of your addressable universe.
3. You’re ready to move from GRPs to calculating ROI on TV advertising.
If you capture PII on a purchase you can compare your target list and accurately determine ROI.
4. You want to know the incremental impact your TV ads are having.
You can test this by running a test and control group during your campaign.
5. You really want to leverage your first party data in conjunction with third party data to empower your TV buys.
This means moving beyond basic demographic selections and into custom predictive models that score the available population and inform you which households to target.
If you answered yes to the above statements addressable TV should be something you’re already testing because chances are your competitors already are.
Industry experts predict addressable TV will account for 25% of TV ad budgets within the next three years. Companies like AT&T Adworks (DIRECTV) are already betting big on addressable TV by planning 100 events nationwide to educate brands and agencies on addressable capabilities.