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Why addressable TV advertising should be your next investment

Recent findings from WARC and the Advertising Association paint a picture of the advertising industry not just in recovery but set for a bumper year. The latest forecast predicts that 2021 ad spend will total £29.6bn, and the Christmas season will see a £1bn uplift alone. Of note, TV advertising is expected to see its most significant Q4 in a decade, with BVOD spend up by 24%. 

This is obviously fantastic news and demonstrates an incredible recovery from 2020. But with such an increase in spend expected, what can brands do to ensure they reach the right audience for them? At Finecast, we believe in the power of TV and the opportunities addressable TV advertising opens up for advertisers to engage their consumers.   

Through addressable, brands can be more specific towards their audiences, reaching households with relevant audiences without feeling invasive to the individual consumer. Coupled with the premium quality and regulated nature of TV advertising, addressable becomes a compelling prospect for many brands. And that doesn’t just mean big-name Christmas ads like John Lewis or Marks and Spencer. Traditional TV has often been viewed for having great reach potential for those with big budgets. However, by incorporating data to identify and target particular audiences, or specific geographical areas, brands can manage their ad spend more effectively. As such, TV can become a relatively affordable option for virtually any brand. 

Through the combination of a great TV creative and data, brands can gain relevance with their audiences. This is one of the most important factors to a successful campaign. But what actually is relevance? In partnership with research company DRG and professors from UCL, we sought to find out. The result is our Thinking Inside the Box research programme. One aspect of the study has examined whether audiences’ engagement with advertising is affected by addressability to the individual.  

When viewing relevant TV advertising, the findings showed that respondents liked addressable ads almost four times more than non-addressable. They also had more accurate memories of the creative. 74% remembered images from the addressable ads, vs 68% who saw non-addressable ads. And, at a physiological level there were even more exciting results. Participants demonstrated a greater focus on addressable ads, exhibited by a lower heart rate – which suggests a greater focus on external factors – than when they watched non-addressable ads. These findings show that brands have a higher chance of engaging them to drive brand awareness and short-term sales, by being relevant to the viewer and addressing their interests. 

TV has the power to excite audiences with best-in-class creative. And by combining it with data, it’s possible for brands big and small, even those who never considered TV as part of their marketing mix, to take advantage of one of the most captivating media available. 

Get in touch to find out how we can help Christmas come early for your brand. 

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