Let’s face it; the modern consumer has higher expectations than ever before. For today’s digital marketer, personalized and relevant campaigns are no longer a “nice to have”. They’re now the foundation of any marketer’s cross-channel strategy. For this reason, it’s never been more important to leverage the addressability of emerging channels. And addressable advertising – especially addressable TV – is just the way to do that.
The birth of addressable advertising
Ask any direct mail marketer about their key to success, and they’ll likely respond that it lies in the art and science of segmentation and messaging strategies. For years, they’ve been targeting consumers with relevant, one-to-one messaging. So why can’t this concept be applied to the TV space?
The good news is – it actually can. In fact, with addressable TV, marketers can directly target consumers using 1st, 2nd and 3rd party data as their single source of truth, all in a privacy-compliant manner. Think of it as direct mail marketing, but applied to television.
How addressable TV works
In the past, TV advertisers utilized basic demographic information, such as age and gender, to base their TV buys. But limited data means limited targeting capabilities, and in turn, limited return on ad spend (ROAS). This is where addressable TV audiences, built with rich data sets, come into play. Simply build an audience based on your own CRM data, a partner’s data or 3rd party data, and you’re ready to get started.
These addressable audiences can then be distributed to roughly 42MM households, or 36% of U.S. households with pay TV. What does this mean for marketers? It means that whether your audience watches Shark Tank or Sharknado, you can reach them with precise, one-to-one messaging that meets their needs. Better yet, you can close the loop with reporting that measures ROAS.
Tips to get started
So how can you get started making Addressable TV part of your marketing strategy? Simply start with your own 1st party data and enrich it with 3rd party insights. From there, work with a neutral 3rd party, like Experian, who can match this audience to a universe of addressable media partners in a privacy-compliant manner. Finally, measure the results, rinse and repeat.
Want a crash-course in Addressable TV? Check out Experian’s podcast with the IMA.
For a deeper-dive, download the addressable TV whitepaper.