The addressable TV business has made strides in recent months with investments led by Starcom and DirecTV, as well as set-top box buys from the Obama campaign, and that will likely usher more spending in targeted TV in the year ahead, says Dave Morgan, CEO and Founder of Simulmedia, an audience ad network and TV targeting technology firm, during an interview with Beet.TV. We caught up with Morgan for a deep dive into the latest progress in addressable ads, as well as the challenges in this area of digital and TV marketing in the year ahead.
Digital advertising measurement techniques are starting to invade TV buying, and that includes in addressable advertising because it can deliver more accurate viewing data, he tells Beet.TV. “We’re seeing a real wave of next-generation, data-driven, technology-driven innovation coming into advertising,” he says. This type of TV targeting is akin to direct marketing, so addressable TV may attract those type of marketers initially. But Morgan expects TV targeting to gain traction with brand advertisers that use it for creative versioning by serving up different types of ads for different products, he says.
As addressable becomes more commonplace, the TV ad business may need new ways of managing inventory and determining how much to sell by household, zone, daypart, program and more. ”That’s a lot of complexity to marketing that has been profitable bcause it doesn’t have complexity. The strength of the TV ad model has been in its simplicity,” he says.