The a4 Advertising View: Addressable TV Advertising Passes Critical Milestones

Indeed numbers speak to how quickly the revenue pool is widening The Myers Report MarketingAdvertising Forecast estimates that addressable TV advertising will reach 31 billion in the US this year up 30 over 2021 and projected to grow by 30 annually over the next two yearsquotWe have scale simplicity and executionquot Rahim explained That goes for both multichannel TV in general and a4 Advertising the ad sales unit of Altice USA in particular quotThe scale and footprint of addressable advertising capabilities has steadily increased to more than half of the entire cable footprintquot He estimates that the number of households that access linear addressable cable service in the US is 4555 millionAdding to the opportunity privacy protected advanced data is now more readily available and actionable across the entire ecosystem quotThe value of addressable advertising has become much more clearly related to measurement results and effectivenessquot Rahim notedIt39s also expected that more national network groups will enable addressability on their owned inventory adding supply to the two or three minutes per hour historically available by multichannel operators That39s one of the reasons why the 75 billion estimate for addressable ads is as high as it isThis outlook is certainly exciting for a4 Advertising but it39s taken a while to reach this point It introduced addressable commercials to advertisers more than a decade ago For addressability to catch fire cable operators had to implement key technologies First they had to get the addressable commercial message in front of the viewers then they had to deliver data about effectiveness of the message in reaching specific audiences back to ad agencies and media buyers That of course needed to happen as quickly as possiblequotUltimately it39s about first getting the right spot or message in front of the right person at the right time and then creating an optimization feedback loopquot Rahim saidTwo important developments have contributed to their success quotThe pandemic accelerated all the 10year projections that everybody in the industry had as it relates to content consumption and distribution channelsquot he explained quotThe explosion of streaming has led to a sea change in the way all the various parts of the ecosystem think about their rolesquotFor example last year smart TV manufacturer Vizio launched a collection of original adsupported channels known as quotFeaturesquot There are six running now with more scheduled to start throughout 2022 It has joined a4 Advertising Comcast and other multichannel operators in the Go Addressable initiative which aims to accelerate efforts to deliver scaled addressable TV capabilities that make it even easier for advertisers to incorporate addressable TV into their advertising campaignsImprovements in technology deployment and data retrieval are encouraging a wider variety of advertisers to enter the marketplace on a regular basis quotIt used to be that the early adopters could all be lumped into a bucket back in the day advertisers of expensive products or services looking to target a national audience of less than X million homes with a product that had a costperacquisition above Yquot Rahim asserted quotToday addressability on the big screen is more accessible for any advertiser looking to see what kind of reaction they get from a test audience segment for a new productquotOne of the advantages of using linearhousehold addressable TV as part of a marketer39s media strategy is the assurance that there are wellestablished rules around viewership and reporting of settopbox impressions reducing the fear of poor data or outright fraudIn the long run a4 Advertising sees interactive ads as another quotinteresting opportunityquot to explore for addressable buys When that opportunity can be realized is unclear at this time But with a seventhinning mentality and 75 billion revenue projections a4 Advertising has plenty of opportunity to work with right nowClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

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The a4 Advertising View: Addressable TV Advertising Passes Critical Milestones

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Simon Applebaum

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