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State of the Screens

‘Next Gen TV’ Could Be An Ad Boon For Local TV Stations

By February 6, 2018No Comments

As we discussed last week, broadcasters are making big moves on the advertising side to compete with digital rivals that offer addressable advertising.

The ability to deliver addressable ads with local broadcast programming could be here in as few as 3 years.

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%)

More moves. Videa Sees Local TV Programmatic Gains, Nears Desired Scale

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.

More. NBC Exec Calls for Total Audience Delivery

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.