When I was growing up, the television held prime position in our family living room. While we weren’t addicted to the TV, it did bring us together when we wanted to watch our favourite shows.
Lately that “collective” viewing experience has been an infrequent occurrence, as younger members of my household prefer the flexibility of viewing content over IP-connected devices and the personalization offered by new models of TV advertising, such as addressable TV. But, before I continue, it’s important for me to clarify the difference between programmatic and addressable TV in order to detail how addressable TV can be used as part of a broadcasters’ toolkit in the battle for future advertising revenues.
Programmatic vs Addressable TV
Unlike programmatic TV, which we define as the use of a software platform to automate the purchase and optimization of TV advertising, addressable TV uses programmatic technology and advanced audience metrics to deliver specific ads at a household level in real-time.
Addressable advertising helps broadcasters in their battle for younger viewers, as it ensures a more personalized and enjoyable viewing experience. Broadcasters ensure that ads are sent only to viewers or households within the target audience. In Europe, Sky’s AdSmart product is a good example of addressable advertising in action. Introduced in the UK in 2014, the product has since been rolled out across Germany, Austria, Italy and Ireland, with brands such as Santander and British Airways reporting increased brand awareness rates by 25%.
Sky AdSmart allows different ads to be shown to different households watching the same programme. This means brands and businesses can now advertise on national channels, but to relevant audiences. Advertisers are able to cherry-pick their audiences using thousands of data combinations based on household attributes.
Here are six tips for securing success with addressable TV:
- Embrace engagement
Personalisation drives engagement. The more engaged consumers are with an ad, the more likely they will be to consume the product being advertised. Broadcasters need to get smarter about the commercial value of different segments of their audience and hyper-target to them in order to ensure content being viewed at the household level is relevant.
- Build a direct-to-consumer relationship
In the legacy broadcast model interaction with the viewer lay at the very end of the content and supply chain. The viewer relationship now needs to come into consideration far earlier in the addressable advertising journey, as platforms and technologies are built around data—UI design, content recommendation, personalisation, subscriber management and customer service must be driven by audience insight, data management and audience segmentation.
- Enact in real-time
The ability to make decisions and act in real-time requires the technology ecosystem to be synchronous—content workflows, video analytics, data management and advertising platforms must operate on the same infrastructure. By rapidly understanding audience changes and consumption patterns, omnichannel broadcasters can reach users with relevant and timely content across the spectrum of consumer platforms—search, social media, email, mobile and connected TV.
- Experiment with new business models
As linear audience numbers fall, the need to be agile and diversify business models and revenue streams becomes more pressing. It is clear that consumers are prepared to pay for premium content—the increase in uptake on subscription “bundles” and direct to consumer applications is testament to this.
Consumers are frustrated with having to pay multiple subscriptions and navigate across multiple platforms to access content. I believe technology, in the form of AI, will eventually help viewers search, discover and consume content across multiple providers, thus improving the overall TV consumption experience.
A new business model needs to be created to make this work—for example, via the development of “metered’’ subscription models, where users will pay for aggregated and curated content from multiple providers.
- Remain responsive to change
Addressable TV is evolving rapidly. The advertising industry is moving away from traditional TV buying models towards programmatic audience-based targeting. For broadcasters in EMEA, the challenge will be how to measure the effectiveness of TV advertising spend and how to enable audience-based buying across all TV inventory. Adobe is part of a consortium of like-minded leaders in the TV industry to examine these challenges and determine solutions. We’ll be revealing finding from the initial research, along with recommendations on how the industry can adapt and change, later this year – stay tuned!
- Exchange data with the advertising community
Broadcasters need to be able to create and package custom, high-value, targeted audience segments that can be sold to advertisers at a premium. But there are further opportunities. As audience definitions become standardised, broadcasters can take advantage of opportunities for data licensing, selling 1st party data on to affiliates, partners and other advertisers and—potentially—creating an “audience marketplace.”
For more information on the state of the TV advertising, industry, read the initial findings developed by the TV Advertising Consortium, of which Adobe is a founding member. Visit us here to find out more about Adobe Advertising Cloud’s capabilities