TV ad delivery will become more addressable as more viewers stream video from set-top boxes and consume IP-based content.
Although the addressable TV ad market is still only worth $300 million compared to linear TV’s $70 billion, cable operators and agencies agree that growing the addressable TV footprint will introduce more flexibility into the cross-platform sales process.
“Addressable” TV inventory can be defined as advertising that is dynamically served on either an impression or household-level basis. The benefit of selling on impressions, rather than traditional units, is advertisers can fine-tune their TV targets.
“If you’re a media owner and you find your over-the-top audience is more receptive to a message within a certain industry vertical, you might be able to monetize that inventory at a slightly higher rate,” said Randy Cooke, VP of programmatic TV for SpotXchange. “By incorporating device-level information, you can begin to institute frequency caps and offer advertisers an episodic ad campaign based on the number of times someone was exposed to a message.”
As ABC has demonstrated, enabling dynamic ad insertion across video-on-demand, set-top box and digital inventory drives more incremental value for the network because it unifies inventory and allows the network to reclaim “lost” linear viewership.
Video on Demand technology, in particular, represents a big opportunity for networks, cable MSOs and advertisers because it’s impression-based and scalable – a provider like Canoe, for instance, can target ads across 130 DMAs and more than 1 billion nonlinear impressions.
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