CANNES – It is an advertising channel that is growing fast – but certain beliefs still worry addressable TV advertising.

A range of industry groups and initiatives are aiming to smash through that inertia and encourage buyers in to addressable.

In this video interview with Beet.TV, Drew Groner, Group VP, Head of Client Partnerships & National Offices, DIRECTV Advertising, breaks through what he calls three “misperceptions” around the practice.

1. Scale is insufficient

“That’s a misperception that was really out there, that you couldn’t get these audiences at scale,” says Groner.

He says addressable launched in 2012, came to scale in 2013, five years later was an “adolescent” and now, according to eMarketer, has a footprint of 56 million US homes.

“What happens is that there’s unduplicated reach across multiple MVPDs that you’re able to get at scale,” he says. “So there’s no duplication; you can control for reach, you control for frequency and really hit that niche target at scale.”

2. It’s too expensive

Some buyers think that buying addressable TV is too costly compared with its forebear. After all, the channel is targetable and controllable.

But Groner says too many people look at the cost of entry from the wrong angle because they are comparing an ECPM against a traditional age-and-gender CPM.

“That is absolutely apples-and-bananas,” he says. “If you look at the effective CPM on the true target of who those individuals are trying to reach within an age-and-gender target, then that effect of CPM on a traditional sense skyrockets.

“Then addressable advertising is more efficient than the competitive set within the traditional marketplace.”

3. It’s only for the niches

Just because addressable TV can excel at targeting, that doesn’t mean only particular advertiser verticals should get involved.

“We work with all categories, all verticals,” Groner says. “We have relationships with all data vendors, whether that be first- or third-party data.

“Whether that’s pharma, whether that’s finance, whether that’s auto CPG, there are ways to target those audiences. There’s not really a vertical out there that the addressable arena and marketplace is not working with.”

You are watching ‘The Advanced TV Industry Connects’, a Beet.TV Leadership Summit at Cannes Lions 2022, presented by DIRECTV Advertising.

For more videos from this series, please visit this page.

Beet.TV is an official partner of Cannes Lions.