The revolution is (almost) here: a fully 1:1 TV ad-buying ecosystem
In the very near future, every single video ad impression will be addressable-enabled. Exactly how long is the near future? Well, some experts say two to three years; others predict considerably longer. Either way, now is the time to plan and test into this new world. The enhanced power to target, buy and measure in an addressable way is too strong for brands to ignore. The following are three key factors driving the addressability evolution:
1. Connected TV viewership: Driving this transformation is the rapid growth of Connected TV (CTV) viewership and the growth of ad-supported CTV. Nielsen estimates that 25% of all TV consumption is now dedicated to CTV viewing and that number has been fueled even more during the COVID pandemic. With improved household and device mapping the CTV ad landscape will fully live up to its potential to be as targeted and nimble as digital advertising. Better yet, these ads appear on the biggest screen in the home with a lot less clutter.
2. Technology is driving a larger marketplace: The more TV impressions that are addressable the better. By utilizing ACR (audio content recognition) technology more linear television networks will be able to unlock addressability on all of their ad breaks. Project OAR is an open source tool that Vizio is building in conjunction with all the top networks to do just that. In addition to a similar ACR tool, Nielsen is partnering with tech companies to develop an “identity graph” that allows marketers to target over 80 million households in addressable campaigns. These new marketplaces will unlock addressability on more and more devices.
3. Leveraging data has never been easier: Data safe havens, like LiveRamp, dramatically increase the ability to leverage offline and online data in a more cohesive way. They offer a compliant way of matching 1st party & 3rd party data (for example, your online sales + TV households). It is easier than ever to utilize CRM data, prospect lists and a growing number of 3rd party sources in the video ecosystem. While privacy laws may be a challenge initially, the marketplace is determined to develop a solution.
A fully addressable TV & Video world is coming. Brands and agencies need to plan for that future now. What does that mean for campaign planning? Getting past Nielsen age & gender demo is essential. Fully understanding your target audience will never be more important. The skills and tools brands and agencies use to plan media will be vastly different than what many use today.
How does it affect creative development? One creative for one campaign has worked for decades. But as media plans become more targeted, it’s imperative to match messaging to a distinct target to fully leverage the value of addressable targeting. Messaging to a prospect should be different than messaging to a current customer, for example.
Measurement of this addressable world is sophisticated and granular. Closed-loop tracking of impression to action, by household, in near real-time. What marketer would not want that? But ensuring that measurement is not only accurate but then acted on in a timely factor is something many agencies are not equipped to do at this time.
Those are key areas for brands to focus their planning in order to unlock the rapidly approaching one to one video ecosystem. The road to a fully addressable world may take longer than many would like but it is a road to more effective advertising. As with any change, the big winners will be those that embrace the change.
To hear more about how we’re approaching addressable, CTV and all things TV & Video, feel free to reach out here.
