Through traditional TV and broadcast media (e.g., cable and satellite networks), brands and advertisers needed to run ads, hope their viewers were watching, and assume, based on general demographics, that those viewers were their target audience.
Since the growth of CTV platforms like Roku, Amazon Firestick, and Apple TV, addressable TV (ATV) advertising has become a much more effective option for reaching the right people with relevant ads.
What Is Addressable TV?
Addressable TV refers to the ability to target specific households or individuals through connected TVs. This allows advertisers to move beyond age/gender demographics by targeting only those households that match their criteria. This means that brands can target their ads to a highly-specific and in-demand audience.
How Does Addressable TV Work?
For addressable TV advertising, the goal is to increase efficiency by targeting households with similar characteristics or interests. Advertisers using ATV must have access to a reliable, high-quality data set – typically a household or individual identifier associated with the TV. Then, can use that data to segment their audience and match them to relevant ads.
Usually, this data is gathered from the household members’ IP addresses or via third-party data providers. It is based on their purchase behavior, online interactions, or other activities. Advertisers can then use this data to create targeted ads that are more likely to generate an action.
Once households have been identified and targeted, ATV ads are served through connected TV platforms like Roku, Firestick, and Apple TV using programmatic technology. This allows brands to serve relevant ads to their target audiences in real time.
ATC vs. CTV vs. OTT: What’s the Difference?
Addressable TV (ATV), connected TV (CTV), and over-the-top (OTT) are often used interchangeably. Though they all refer to viewing content on a connected device, there are some key differences between these terms.
ATV vs. Connected TV
ATV and CTV are both digital TV forms, but ATV specifically targets households or individuals with an ad. CTV refers to any type of streaming media—such as Netflix, Hulu, or Amazon Prime Video—that uses a connected device like Roku or Apple TV.
In some cases, CTV advertising and ATV advertising can overlap. For example, brands may target CTV viewers based on their interests and behaviors and use data from their IP address to serve them ads. But there are other things connected TV can do that addressable TV can’t—like targeting viewers based on their viewing history and the types of content they watch.
ATV vs. Over-the-Top
OTT is an umbrella term for streaming media services that use the internet to deliver video content directly to viewers, bypassing traditional cable or satellite providers. OTT platforms like Netflix, Hulu, and Amazon Prime Video are popular examples of this. It’s important to note that OTT and CTV are also not the same thing—while both use a connected device, OTT streaming services rely on their own content, while CTV can include any type of streaming media.
Benefits of Using Addressable Targeting
When brands and businesses use addressable TV advertising, they can target their ads to a highly-specific audience with greater accuracy. This means that their ads have a higher chance of engaging the right people, leading to better results in terms of viewership and conversions.
Let’s take a look at some key benefits of this new form of advertising.
1. Better targeting means more impactful ad campaigns.
What good is the right messaging if the right people don’t hear it? ATV allows brands to target the right people with an ad that’s sure to resonate.
For example, a luxury clothing brand may choose to target households that have previously purchased high-end items, or households with a certain income level. This allows them to reach their ideal audience and deliver an ad that will be more likely to convert.
2. Improved ROI for advertisers.
ATV offers the potential for higher returns on investment (ROI) for brands by serving the right ads to the right people. By targeting their ads, brands can ensure that they’re reaching the most relevant viewers and getting the most out of their ad spend.
3. Increased reach and engagement for marketers.
By paying close attention to TV-watching trends, marketers can use ATV to reach a wider audience and increase engagement. This can help them expand their reach and maximize the impact of their campaigns.
4. Data-driven insights into campaign performance.
ATV gives marketers access to real-time data and analytics that can help them measure their campaigns’ success in viewership, engagement, and conversions. This data can be used to optimize campaigns for better results in the future.
5. Greater control over ad placements.
ATV gives marketers more control over where their ads are placed. They can choose to target specific channels, programs, or even individual households. This level of control ensures that ads are placed in front of the right people and that they reach their desired audience.
Final Thoughts
Addressable TV is a powerful tool for marketers and advertisers, offering greater targeting capabilities and higher ROI than traditional forms of digital advertising. By leveraging data-driven insights, marketers can ensure that their ads reach the right people in the most effective way possible.
Read more: How to Drive your TV advertising with First-Party Data
