Addressable television advertising has been mostly “a conduit or corollary to what happens in digital” in terms of being able to bring attribution and accountability to television, according to Cadent’s Nick Troiano. But things are changing on both the demand and supply side.
The CEO of the advanced-TV platform cites pay-TV operators like Comcast, AT&T/Xandr and Charter making considerable technology investments “to support this national addressable solution, to bring that kind of accountability to television.”
On the demand side, “the agencies and advertisers are starting to rethink their strategies for television. It’s true that TV as a medium is working very well. I think it’s also true that social and digital, which was a big push for the last five years, works but also lacks some of the scale that television brings,” Troiano says in this interview with Beet.TV at the LUMA Partners Digital Media East conference.
Combining the two trends brought both sides together to “start thinking about how to build addressable business models. We’ve seen that grow pretty significantly,” to about $2 billion in addressable spending. “From a Cadent perspective, we see addressable growing really thirty to fifth percent year over year.”
He describes Cadent, whose heritage is in national TV solutions, as figuring out “How do you bring a fragmented marketplace in the traditional television sense to brands and advertisers in a way that complements their current TV strategies.”
Among the major pay-TV operators offering addressable, “each one has their own solution set, technology infrastructure and capabilities. So Cadent’s role in this marketplace today is to aggregate the addressable inventory across all those pay TV providers and make it simple for an advertising agency to execute a national campaign.
“So that’s simplified TV formats, simplified reporting, simplified planning. And it’s those kind of simplifications that have made traditional TV work that is fundamental to help drive the demand, move from traditional television dollars to addressable,” Troiano says.