As we discussed last week, broadcasters are making big moves on the advertising side to compete with digital rivals that offer addressable advertising.
This would give local broadcast the ability to offer targeted advertising in all 3 areas below:
1) Age/Gender — The planning/buying of television ads against an age/gender demo (adults 35+ etc.) and optimized for reach/frequency.
2) Advanced TV — The planning/buying of television ads against a specific target (auto intenders, quick service restaurant customers, etc.) and optimized to drive business outcomes (sales, etc.).
3) Addressable — The planning/buying of television ads directly to specific targets and optimized to drive business outcomes.
Cable/Satelite TV offers a similar process but there is no agreed upon standard making it cumbersome on advertisers.
Addressable ad spend on TV:
1) 2016: $450m
2) 2017: $600m (↑ 33%)
Addressable advertising accounts for 12% of local cable spend.
Households with addressable advertising (cable/satellite only):
1) 2017: 42m
2) 2021: 74m (↑ 76%)
Key stats for current programmatic efforts w/ Videa:
1) Markets — 96
2) Stations — 188
3) Stations/Market — 2
4) Households — 69m
5) Annual ad impressions — 432b
What is the difference between addressable and programmatic?Addressable is the way that the ad is targeted and programmatic is the technology used to purchase/traffic the ad. These are not mutually exclusive. For example, the majority of addressable advertising on TV is not programmatic because the negotiation/purchase is handled manually.