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Measuring the Power of Addressable TV 

In 2020, Finecast launched our Thinking Inside the Box research series to explore the changing TV landscape and the evolving role of addressable TV advertising. Through this research we tackled the question ‘What constitutes TV these days and how do viewers define it?’.

The perception of advertising was also changing, with personalised ads seen as intrusive and the concept of relevant ads seen as appealing. This middle ground presents an opportunity for addressable TV, which delivers ads to postcodes and households, creating relevancy without overpersonalisation.

The Addressable TV Opportunity

We partnered with cognitive neuroscientists at UCL’s Department of Behavioural Psychology to explore how viewers responded to ads in different contexts. The results revealed that viewers liked addressable ads almost four times more than non-addressable ads – and they remembered them more accurately. We also wanted to know how the advertising industry perceived addressable TV. Through in-depth interviews with senior figures, we learned that while it was viewed as expensive, addressable offered opportunities, particularly for brands looking to advertise on TV for the first time. View the full Thinking Inside the Box report.

 

Measuring the Success of Addressable TV

In the latest phase of our research, we explored how advertisers are currently using addressable TV, its role in the media mix and its impact on brands’ business objectives. We looked at the challenges marketers have around investing in addressable TV through the lens of three brands: What Car?, Sweaty Betty and eBay.

 

What Car? – Alter Brand Perceptions

In December 2019 What Car? launched their biggest and most ambitious marketing campaign to date. The primary aim of this activity was to build brand awareness and alter brand perceptions, positioning What Car? as a trusted destination to not only review, but also to purchase a new car. In addition, the campaign sought to generate new leads amongst car buyers. The campaign was What Car?’s first venture into TV advertising, with the channel chosen specifically for its power to build brand awareness and perceptions.

Not only was the ratio of enquiries to ad views higher for addressable TV than paid social, in the second half of the campaign the cost per enquiry and cost per buyer derived from addressable TV were much lower. Based on postcode matching, an additional 28 enquiries and 21 buyers could be attributed to each £1,000 spend on Finecast addressable ads. The ratio of car buyers attributed to addressable TV in relation to those making enquiries was very high at 69%.

 

Sweaty Betty – Brand Building and Awareness

Sweaty Betty’s first-ever TV campaign was launched using Finecast in 2020. Showcasing the brand’s Power Leggings, it targeted women with interest in sport and fitness. As the campaign was paired with paid social, email and online video, it presented the ideal opportunity to investigate the differences between online video and TV, as well as the incremental impact of using both channels. Following the campaign, 700 women in the UK with a self-professed interest in sport and fitness took part in an online survey. Based on recent BVOD player and online video usage – we created matched groups of women potentially exposed to the TV campaign, as well as those not likely to have been exposed. To explore the incremental impact, these groups were broken down further into groups of those likely exposed to TV, online video and both channels

Using addressable TV alongside online video delivered a positive incremental impact. The addressable TV test group were almost three times more likely to have purchased from the brand in the previous three weeks. They were also significantly more likely to perceive Sweaty Betty as a unique brand that champions women and as a brand that is more than just its products. The likelihood of responding to a future call to action and of reporting recent conversations about the brand were also significantly higher.

 

eBay – Uncovering the Meaning of Relevance

We spoke to a UK nationally representative sample of 1,500 people who had made an online purchase in the previous 12 months. Using a creative diagnostic approach, we tested two different eBay ads (‘Black Friday’ and ’94 seconds’) with the sample. Key driver analysis examined the correlation between different creative elements and perceived relevance; MaxDiff ranked the different elements; dial testing measured their levels of appeal and correlation analysis established whether there was a relationship between the creative being relevant and call to action.

Despite differences in the purpose and execution of each ad, our analysis indicated that in both instances the utility of the ad was the top factor driving the feeling of relevance. For the Black Friday brand building campaign, product relevance was the second biggest driver of the ad being seen as relevant.   As for the 94 seconds ad campaign, both product relevance and the theme of life changes were key in driving overall creative relevance. Finally, we found that utility, as well as helpful practical information was a driver for older audiences, while younger respondents placed more weight on utility and emotive content.  

 

The Power of Addressable TV

 Addressable TV can deliver benefits to both novice and experienced TV advertisers. Our first-time brands, What Car? and Sweaty Betty, were using addressable to achieve a better understanding of outcomes and return on investment. By contrast, an experienced TV advertiser like eBay was more focused on using addressable to discover how more nuanced audiences responded to different content combinations and profiles. The results point to a sweet spot – addressable TV delivers the biggest benefits to advertisers when audience targeting and creative content are perfectly aligned. Contact Finecast today to find out more about Addressable TV.

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