eMarketer predicts that $2.54 billion will be spent on targeted, addressable TV ads in the US in 2019. This number is projected to increase to $3.3 billion by 2020, according to AdWeek. For decades, TV advertising practices have remained fairly unchanged – that is until now. Instead of spending their TV dollars in a Don Draper fashion, basing their buys on basic demographics and negotiating billion-dollar deals over a handshake or phone call, today’s most influential brands are now leveraging the power of addressable TV.
The concept of addressable TV is simple: deliver TV advertising like one targets email or direct mail, using 1st, 2nd and 3rd party audience data such as income, lifestyle interests, shopping behavior and family composition. Like a piece of mail that arrives in your mailbox, the TV ad can be tailored to the household. Addressable TV is about the person and not the program. It doesn’t matter if your best customer is watching Shark Tank or Sharknado, through addressable TV you can still reach them with the perfect message wherever they are. Targeting is only half the story. The robust closed loop reporting that addressable TV provides is one of the most powerful tools that advertisers have at their disposal, revealing both the in-store and online sales impact of their campaigns.