Are we on the cusp of a new golden age for TV advertising?

Experts are already predicting a recovery from the decline in TV spend, thanks to the rise of addressable advertising. It’s altering the traditional TV ad buying process.  Essentially disrupting the disruptors themselves – the internet ad giants.

By harnessing the big data and technology traditionally adopted in digital advertising, addressable gives brands the capacity to target ads to different viewers watching the same programme.

Sky has long paved the way in addressable TV, launching its AdSmart service in 2014. This year, ITV and Channel 4 joined the ranks by piloting their own addressable technology.  While Amazon has been mulling over the development of an ad-funded, free-to-air TV channel in a bid to take a share of the revenue.

Not entirely convinced by addressable advertising? Here’s why it’ll dominate in 2019:

 

Playing it safe

While digital giants Google and Facebook have had to battle against false advertising scandals, ad blockers and data breeches this year, TV remains the most trusted form of advertising, with 42% of the UK population deeming it as the most trusted medium (compared to 5% for social media). Some of the biggest ad spenders have already scaled back on digital only to reinvest into traditional trusted platforms such as TV.

 

Targeting people, not programmes

With more data on hand, addressable provides brands with a more tailored approach to targeting consumers. There’s little wastage when it comes to impressions because ads are only delivered to viewers within the targeted audience.

 

Scalability potential

More than half of televisions in homes are smart TVs or internet-enabled devices. As broadcasters expand their inventory and television becomes more connected, so will the potential to reach a wider audience. Expect more partnerships between data and tech platform providers too.  Sky’s alliance with Virgin’s customer base helped grow their subscribers by 4 million, reaching 30 million people.

 

TV Accessible to all

Traditionally, TV appealed to big brands. But addressable TV has made it more accessible to smaller, niche and local advertisers, giving them the flexibility to reach a highly segmented audience through targeting on a household-by-household basis.

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