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The advantages of addressable TV and the use of data

  • LiveRamp
  • 3 min read

Addressable TV or segmented advertising allows you to offer different advertising to 2 viewers watching the same program. In France, addressable TV is currently reserved for “on-demand” services of television channels. In fact, CSA prohibits the use of segmented advertising for linear television. However, tests are underway and the situation should change in 2020.

And for good reason: addressable TV brings many benefits to advertisers. It allows targeting qualified prospects by using data. But also to reduce its advertising expenses by buying only the spaces allowing the best ROI.

The data collected by connected TVs also allows better analysis of the results of advertising campaigns. In short, addressable TV equips television media with the same weapons as its digital competitors (YouTube, Facebook, Google).


Reaching your target audience with addressable TV

Addressable TV allows advertisers to make the most of their first-party data to buy TV ads tailored to their customers. For users of connected TVs, it is possible to collect second-party data from various technologies sometimes embedded in the tools or applications. It becomes possible to target a certain type of household or even viewer for its advertising campaign.

The use of data allows, for example, to identify each connected TV set, but also to associate a more or less precise profile with it as well as viewing preferences (type of content, time spent, frequency, etc.). Addressed advertising is used to reach a company’s target audience directly, based on performance and not just audience rate.


Saving money on your television advertising campaign

A company that uses addressed advertising buys a much more targeted advertising space than do traditional advertising campaigns. Addressable TV and the use of data thus allow optimising the costs of TV advertising campaigns, while significantly increasing its ROI.

In addition, the geographic data of viewers and the possibility of buying advertising space by unit allow local companies to have access to the television medium. You can design an advertising campaign in your region, targeting a number of prospects adapted to your marketing budget.


Personalise your advertising strategy with data

The use of data allows an even greater personalisation of TV ads. For example, a brand may decide to show a different segmented ad to a viewer, who has already seen an initial commercial. This develops storytelling opportunities and avoids being too repetitive in its television communication.

This diversification of a company’s advertising approach is made possible, among other things, by the savings on its advertising campaign. The advertiser therefore has more control and freedom in the management of its marketing budget, which allows for example to shoot several commercials instead of one. And, potentially, to promote more services or products, to an ever more qualified audience.


Analysing the results of its advertising campaigns more precisely

It is often difficult to know the ROI of a television advertising campaign. A company purchases an advertising space at a time that corresponds to its target audience, but not always knowing exactly who is behind the screen. Advanced TV alleviates this problem.

Indeed, the second-party and third-party collected via the internet box for example, make it much easier to quantify the impact of a TV advertising campaign. By directly addressing carefully selected households, it becomes easier to measure the reach, the awareness impact, the conversion rate and therefore the ROI of its addressable advertising campaigns.