Addressable TV, which refers to digital buys for impressions on a specific cable set top box, is a good channel for advertisers to reduce media waste, the research reveals. **Comcast Live/Linear homes are a subset of Comcast VOD homes ***DISH includes Sling TV • Addressable Linear TV does not widely support dynamic ad delivery, though specific ads can be sent to specific (addressable) households for granular audience targeting. Addressable TV Statistics for 2020. We define Programmatic TV as an automated, data-driven method of planning and buying linear TV advertising. Linear TV is still the backbone of the AV mix. The most substantial divide between linear and addressable advertising for businesses is the ROI metrics. Linear TV is a different term for what we know as traditional television, as a matter of fact. Note that sales driven / scale is investment multiplied by ROI. For these latter homes, programmatic advertising is the best they can do. If a linear TV ad costs $10 per thousand viewers, a marketing metric known as cost per mille (CPM), then that means it will cost $100 to reach one thousand interested customers. This works well for more niche brands that have a very specific audience. Small forays into tactical, targeted media are likely to yield higher than average ROIs (assuming you pick the right media for you and get your targeting strategies right). We recommend a target audience should be between 15 and 30 percent of the overall media provider audience. Each type of advanced TV uses programmatic ad technology to varying degrees, but as a whole they make some pretty big promises. Advanced TV has tools to limit the number of times a viewer sees an advertisement or can even evolve the strategy to display a growing story as they watch from hour to hour. Though the capabilities exist, it’s important to note that, presently, the addressable reach of these cable and satellite providers remains small. Each bubble on the chart represents a campaign, orange bubbles Linear TV campaigns and blue bubbles Addressable TV campaigns. A data-driven, full service advertising agency delivering the most relevant digital experiences. “Anything that can be delivered programmatically, we … Linear advertising that calls for a memorable, emotional response also reaches beyond target demographics by sentimentally engaging the masses. There is inherent sample selection bias in that the brands who make most use of Addressable TV are precisely those for which the strongest case exist, meaning that they are bound to perform well. The chart below tells the story. Where programmatic is made simple. The orange bubbles (Linear) are all off to the right. However, alongside the growth of over-the-top television has been the tendency for people to skip over ads with the press of a button. LinkedIn recommends the new browser from Microsoft. As a result, ad spending on advanced TV alludes to more conversions through the all-important marketing funnel by circumventing the masses in favor of viewers that are more likely to buy their product. Real-time programmatic ad serving is great for digital, but doesn’t translate to linear TV. The TV space is a challenging ecosystem and growing more complex with each passing day. U.S addressable TV spending is expected to rise by 33% for the next two years. The beauty of addressable advertising is brands and agencies have an opportunity to test and revise, until they’ve found the perfect balance. This relatively new practice is known as “addressable TV.” Addressable TV uses programmatic technology and advanced audience segmentation to deliver specific video ads at a household level in real time. Moreover, many new data tools in TV advertising can apply as equally to the annoying kind of TV advertising as they do to addressable and connected TV advertising. Addressable linear TV does not widely support dynamic ad delivery, though specific ads can be sent to specific (addressable) households for granular audience targeting. Here we want to go a bit further and share some of our findings (suitably averaged and anonymised) in relation to Addressable TV. • Addressable TV leverages subscriber registration data On the chart we have plotted the Efficiency (ROI) and Scale (Sales Driven) of a number of different media campaigns. They drive a lot of sales and help support the volume aspirations of brands. Linear TV ads only reach 10% of the intended audience on average, meaning that a significant amount of spending is wasted on uninterested viewers. The blue bubbles (Addressable) are mainly clustered in the upper-left quadrant in the chart, representing higher-than-average ROIs. Through a more advanced linear TV buy, called Linear + at organizations like NY Interconnect (NYI), brands are able to use the reach of linear with the targeting of addressable by creating a media plan that replaces basic demos with audience intelligence. Another advantage that addressable linear TV has is that it can rely on the current analog TV ad-serving infrastructure. If scale comes at the expense of efficiency, the blue Addressable bubbles will end up where the orange Linear bubbles are now, which is not a bad place to be but indistinguishable in their strategic role in the media mix from Linear TV. Addressable ads offer the first-ever targeted approach to marketing, which can hone in on specific demographics and offer ROI metrics that help plan future TV … On the horizontal, the sales driven by each medium, or campaign, in other words scale. Addressable TV also opens the possibility for brands to target individual households with messages relevant to that viewer and their place in the purchase journey. Keynes Digital. While this potential audience isn’t all watching the same channel at the same time, advertisers can capitalize on a viewership of millions at a time on a single channel. The above are the main differences between Programmatic TV Vs. Addressable TV. In comparison, there is a glut of linear TV ad time in the US, which is why household addressability will unlikely scale to become the predominant tack of campaign audience fulfillment. The second source of pure TV advertising is set-top boxes from satellite and cable companies that offer addressable advertising for either on-demand or linear programming. However, if you consider these two technologies as competing channels, it limits the abilities that both can perform for a brand.  Let’s take a look at how linear and addressable advertising differ-  and how the two will coexist in this new media landscape. As early as 2010, 86% of TV viewersskipped over ads while catching up on programming saved by their digital recorders. (Programmatic TV is also referred to as addressable linear if addressable targeting is layered onto the ad.) In an hour of cable TV, there are up to two minutes of addressable ad space available. Ultimately, linear and addressable advertising can serve two distinct purposes for a brand and even work together for a more cohesive marketing strategy. With help from our team at NYI, your brand can make the most of this prominent advertising medium by building a plan that drives customers to checkout. The importance and power of addressable TV Addressable TV The ability for an advertiser to define an … See our. Brands’ forays into Addressable often tend to be niche and tactical, rather than sweeping. > Connected TV|Connected TV (CTV) is digital content accessed by apps and streamed over smart TVs, mobile, or OTT devices. And that is exactly the strategic challenge presented by the chart above: how to increase investment in highly efficient, tactical Addressable media whilst maintaining the efficiency. With addressable advertising, however, companies are targeting specifically their intended audience, so if they spend $40 CPM, then they reach one thousand customers with only that $40. To some extent this reflects the nature of the medium, which focuses on targeting potential consumers with a higher propensity to purchase than the average. Since OTT content is delivered over the internet to connected TVs with persistent IP addresses, advertisers can target and serve ads to specific … With the largest scale, programmatic TV is perfect for brand awareness campaigns seeking national exposure. 530 5th Avenue 6th Floor New York, NY 10036 | © copyright 2021 NY Interconnect, LLC | terms and conditions | privacy notice, 119.9 million households that have television, 60 million households and roughly 162.2 million people. Addressable TV refers to the ad inventory available through cable (set-top box) providers, such as Time Warner and Comcast, companies that can present your messages through their linear programming or VOD inventory. With linear advertising, this type of scale allows brands to reach a vast market with a single campaign. It is also known as cable television and in the traditional linear TV, the schedule is delivered to the audience at a certain time via … While addressable TV is technically a form of programmatic TV (they both use automation to serve TV ads), its … As of July 1, LinkedIn will no longer support the Internet Explorer 11 browser. This can include TV spot placements within cable, satellite, and/or broadcast inventory. Linear TV advertising finds its strengths in reach, repetition, and cost, allowing companies to stretch far and wide on the TV ad space for potential customers without sacrificing their budget. Addressable TV is the ability to serve different ad content to different audience segments watching the same TV program on IPTV set-top boxes or connected TV sets, based on specific audience targeting. Streaming servi… Addressable TV budgets are far smaller than Linear TV. We and third parties such as our customers, partners, and service providers use cookies and similar technologies ("cookies") to provide and secure our Services, to understand and improve their performance, and to serve relevant ads (including job ads) on and off LinkedIn. The AT&T AdWorks product suite includes: Addressable TV Advertising, Data-Driven Linear, Interactive TV and Premium Digital Video Advertising (including DIRECTV NOW and Otter Media properties). For that you would have to scale up investment. From Q1 to Q2 this year, addressable linear TV ad spend increased 150 percent on the Videology platform. Linear TV advertising is the cornerstone of any brand’s marketing strategy. Programmatic TV's ROI is on par with linear's. In the first half of 2017, the number of advertisers that ran a campaign exclusively on connected TV (CTV) rose 21 percent over all of 2016. Reality in Addressable TV Linear TV Programma6c TV Percep6on Reality Linear TV Addressable Linear TV Video On Demand (VOD) Over … Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. 3. Addressable TV Spending will be growing $3.4 Billion in 2020. Addressable TV budgets are far smaller than Linear TV The blue bubbles are all, without exception, much smaller than the orange bubbles. Linear TV advertising finds its strengths in reach, repetition, and cost, allowing companies to stretch far and wide on the TV ad space for potential customers without sacrificing their budget. Consider current addressable TV advertising on traditional linear TV platforms and premium “non-linear” TV platforms on digital platforms.