New Go Addressable and CIMM Study Demonstrates How Addressable TV Advertising Increases Reach of Linear TV Ad Campaigns
29 Febbraio 2024 - 3:30PM
Business Wire
Report highlights the important role that
addressable TV advertising plays in the overall media mix, along
with five best practices for planning and buying in this sector
Go Addressable and the Coalition for Innovative Media
Measurement today unveiled the results of a new joint industry
study on addressable television advertising usage and trends.
One of the report’s key findings was this: Leveraging a portion
of ad dollars for addressable TV advertising, in addition to linear
TV, in the majority of cases, results in increased campaign
reach.
The study, titled “A Guide to Best Practices in Planning and
Buying Addressable Television Advertising,” highlights the vital
role that addressable TV advertising, the ability to serve targeted
ads to specific households or users, plays in delivering cost
effective reach and frequency. For media owners, the medium can
play a vital role in supporting TV’s share of marketing spend in
today’s complex ad marketplace.
Go Addressable and CIMM tapped into their breadth of industry
members and specially commissioned research and analysis to deliver
this study. Go Addressable is a non-profit trade organization
dedicated to raising awareness of and advancing the growth of
addressable TV advertising using aggregated data with a commitment
to protecting personal information. CIMM is a non-partisan
coalition focused on cultivating improvements, best practices and
innovations in measurement, metrics and data usage across the media
and advertising ecosystem.
Incorporating addressable TV advertising into a brand’s media
mix consistently garners about 40% reach, regardless of a
marketer’s target audience penetration. For instance,
low-penetration brands, which the report defines as under 20%,
achieved target audience reach of between 37% and 45%, on average.
High-penetration brands (those over 70%) saw a similar result, with
an incremental target audience reach of between 37% and 44%, on
average.
“The TV ad market is clearly changing, with viewing becoming far
more widely distributed over a growing range of linear and
non-linear services,” said Jon Watts, Managing Director, CIMM.
“Addressable TV advertising has become an increasingly critical
capability for the industry, helping advertisers to cost
effectively build out the reach and frequency of their campaigns,
including for larger target audience segments. Linear and
addressable are better together.”
Janus Strategy & Insights and Sequent Partners, the two
consulting firms commissioned to develop the study, interviewed 20
agency and publisher stakeholders for original commentary and
insights. The two firms also conducted an in-depth analysis of 145
addressable TV ad campaigns, which measured the reach and frequency
of both linear TV and addressable advertising.
The research revealed the below key findings:
- Addressable consistently delivers about 40% reach regardless
of target audience penetration. Low penetration brands (defined
as those with penetrations under 20%, achieved target audience
reach between 37 and 45%, on average. High penetration brands
(defined as those with penetrations over 70%), meanwhile, saw
similar results, with target audience reach between 37 and 44%, on
average. The key takeaway here is that addressable TV advertising
can help build reach regardless of a brand’s target audience
penetration.
- Addressable delivers incremental reach to both large and
small linear campaigns: Addressable TV adds incremental reach
when linear reach begins to plateau, making it more cost efficient.
In fact, addressable TV is found to be between 20% and 30% more
efficient in adding incremental reach than linear.
- eCPMs for addressable campaigns are more efficient: Even
with higher target audience penetrations, addressable eCPMs (the
effective cost per thousands of impressions) are more efficient
than linear eCPMs when it comes to light linear TV viewing
audiences.
- MVPD addressable TV is more precise than IP address matching
and outperforms it: An analysis found that 95% of addressable
households were matched via postal address compared to 60% via IP
address. After 30 days, 82% of addressable homes remained
accurately matched compared to 44% of connected television (CTV)
homes.
- MVPD addressable TV is not just for older adults: While
many buyers believe that CTV addressable is best used to target
younger audiences and multichannel video programming distributor
(MVPD) addressable is best used to target older audiences, the data
show that CTV addressable and MVPD addressable play complementary
roles in reaching adults 18-49.
The report also outlines five best practices for buying and
planning addressable television advertising: 1) develop a detailed
audience target profile; 2) benchmark the linear TV effect; 3)
determine the reach, scale and eCPM for various addressable pools;
4) determine the point where the linear TV reach curve flattens
out; and 5) leverage all data and simulate the reach of the
combined linear and addressable TV schedules.
“This is a pivotal time to be in addressable TV advertising,”
said Larry Allen, Board Chair, Go Addressable. “In today’s
fragmented media landscape, the medium offers advertisers several
key advantages for staying ahead of and anticipating shifting
viewership habits, including targeted reach, ad relevancy and
authenticated identity combined with the highest quality video ad
inventory. We hope that these best practices and insight will help
the industry continue to move the needle forth on innovation as
well as elevate, protect and prioritize the viewer experience.”
To download the guide and read an overview of the study, click
here.
About Go Addressable
Go Addressable is a nonprofit trade organization led by TV
distribution companies (a4 Media, Charter Communications’ Spectrum
Reach®, Comcast Advertising, DIRECTV Advertising, DISH Media and
Paramount) to help maximize the scale, impact and value of TV as a
marketing platform. The group’s mission is to further accelerate
the advancement of addressable TV advertising in a way that is
trusted, scalable and effective for both advertisers and
programmers looking to make their inventory addressable. Go
Addressable will achieve this through advocacy and education within
the industry; problem-solving and action around industry
challenges; and by working to facilitate the use of addressable
advertising campaigns for buyers and sellers of TV inventory. For
more information on how to participate, please visit
goaddressable.com.
About CIMM
The Coalition for Innovative Media Measurement (CIMM) is
comprised of leading TV and video content providers, media buying
agencies, large advertisers, pay TV distributors, research and
media technology vendors and consultants that aim to promote
improvements, best practices and innovations measurement, metrics
and data across the media and advertising ecosystem. CIMM is a
division of the ARF (Advertising Research Foundation), which aims
to further, through research, the scientific practice of
advertising and marketing. CIMM is currently working across a
diverse range of projects, including initiatives focused on
measurement, Smart TV data, data privacy, streaming, clean rooms,
and other areas.
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Media Contact: Elaine Wong elaine_wong@comcast.com
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