To prevent further revenue drop, linear television will have to change advertising practices completely
For many years, advertising budgets were gravitating towards the Internet because only this medium could offer media buyers precise targeting and efficiency metrics for campaign analysis. The experts predict that by the end of 2018, the Internet advertising budgets will outweigh linear TV by a whopping $40 billion.
A couple of years ago, the ad market was close to the point of no return and the industry players predicted nothing but a slow demise of TV advertising. In order to prevent further revenue drop, linear television will have to change advertising practices completely.
Let’s find out how the market adapts to the new programmatic-driven addressable TV reality.
What is addressable TV and how it’s different?
Audience segmentation goes beyond social media with 'Addressable TV'
Digital channels have perfected the art of user-specific advertising. Facebook shows you ads that are relevant to your interests, and you’ll often visit a website and see an ad for an item you recently researched but didn’t purchase. Display ad marketers use 'retargeting' to recapture lost potential sales and drive conversions.
Now, this same digital concept can be applied to television which enjoys the largest audience reach of any media today at 96%.
Addressable television allows marketers to show specific commercials to certain viewers after segmenting them based on data-driven household profiles; the technology to enable addressable television only requires the IP addresses from set top boxes, which allows a TV’s Nielsen data to be integrated with the data from other devices and databases.
Addressable TV campaign with Chevy and DirectTV &DISH
To get a closer look at how addressable television works, we…