That addressable television will increase from 63 million cable and satellite households to 70 million by the end of 2018 is a big number. But behind the scenes, smart TV’s have the potential to optimize addressable campaigns in-flight.
These trends will help to change the TV business “more in the next two years than it has in the last fifty,” says Jamie Power, Chief Operating Officer of one2one Media.
In addition to aggregating linear TV inventory, one2one does the same for addressable video supply. “Anyplace we can apply the same data and then get the measurement on the back end we’ll do it,” whether it’s OTT, mobile or desktop, Power adds in this interview with Beet.TV.
Goals vary by advertiser needs—from sales lift, web traffic or foot traffic to physical locations. “We can even tie addressable exposure back to social media chatter.”
Post-campaign analysis indicates return on ad spend. One2one knows by category and advertisers “how much they can pay and we’re able to go back and adjust the pricing,” Power adds. “So you’re able to finally ad some transparency to television and see what works, what doesn’t work.”
Knowing what doesn’t work is valuable feedback “because you’re able to go and make adjustments to future campaigns.”
In the simplest terms, MVPD’s that are able to offer addressable advertising have invested in technology to make their set-top boxes function like digital ad servers.
One2one is “starting to look at matching the smart TV device ID, IP address and ACR technology” to make addressable TV perform more like digital media, which will enable in-flight campaign optimization. Legacy systems cannot do this because “it takes a couple of weeks to populate the set-top boxes and get the right messages to right households,” Power says.
For brands with very broad consumer targets, addressable might not make sense unless, say, those brands want to conquest against competitors. Many advertisers start testing addressable by working with one TV provider then scale up from there.
Power cites the example of an online retailer with which one2one has worked for four years. At the beginning, the retailer’s total targeted households were 700,000 and it achieved a return on ad spend of $300,000. This year, its campaign reached more than seven million households and its return was in excess of $6 million, according to Power.
This video was produced at the Cadent & one2one Media UpFront 2018 industry summit. You can find more videos from the series here. The sponsors for this series are Cadent and one2one Media.