Addressing the entire sales funnel
Kristian Claxton, Managing Partner
Traditional linear TV has historically faced two misconceptions regarding advertising – that it doesn’t have adequate segmentation and targeting, and it’s expensive. However, our Thinking Inside the Box research found that 37% of consumers trust in TV advertising, significantly higher than other media, such as radio (19%), cinema (17%), press (16%), out of home (15%) and online (10%). Addressable TV advertising is the mechanism through which brands can harness that trust and power of the big screen and combine it with household level data to support the entire sales funnel.
Addressable TV is the ability to show different ads to different households while they are watching professionally produced TV content on the big screen across on-demand, live streamed and linear viewing environments. The original premise of it was to deliver specific product or service messages to particular segments in order to drive short term effectiveness, such as sales, footfall, web traffic or sign-ups. Now it is so much more. It enables brands to reach new audiences on new platforms, driving performance across brand, consideration, intent and sales KPIs as a result.
As I recently discussed in The Drum, addressable TV opens up huge opportunities for brands. Addressable TV allows TV to extend brand messaging into non-linear viewing environments whilst simultaneously providing brands with alternative means of short-term activation. Allow me to explain.
By incorporating addressable TV into their advertising portfolios, brands can achieve postcode and household level targeting that enables them to serve consumers with the most relevant creative message based on proximity to store locations or price-led deals to support short-term, lower funnel KPIs. Conversely, addressable TV is frequently deployed to brands ‘Total TV’ mass reach campaigns. In this scenario, addressable TV is supporting long-term, brand building by providing advertisers with the opportunity to identify and reach new audiences on new platforms across BVOD, AVOD and live streaming supply to maximise reach for efficiently.
Addressing the question of cost, TV advertising costs more because of the premium nature of the inventory and the required production value. But that doesn’t make it too expensive. Addressable TV enables brands to accurately segment audiences based on a wide variety of factors, so they target investment on a specific group – which, ultimately can work to be more cost effective. One company that has recognised the value addressable TV brings is premium cocktail brand NIO cocktails. By incorporating addressable into its marketing mix and matching itself with an ideal audience, it was able to grow awareness and sales – demonstrating the value of TV throughout the funnel.
There’s a huge opportunity for brands to engage with consumers at every stage in the sales funnel. Enhancing the power of TV with data through addressable is a quick and cost-efficient medium to serve relevant ads that can support brand awareness all the way down to short-term specific sales goals to target audiences.