CANNES — Addressable advertising is exploding across the media landscape, with 73% of media buyers now incorporating it into their mix, up 16% year over year, according to Matthew Van Houten, SVP, Product, Operations & Business Development at DIRECTV Advertising.
As a precision tool, addressable advertising has evolved to deliver a double-digit lift for clients seeking the right message for the right person at the right time.
In this video interview with Tameka Kee for Beet.TV, Van Houten explains how he sees the developments.
A Tool with Tremendous Momentum
At Van Houten’s DIRECTV, addressable advertising has been the “superpower for the last decade”. The company was an early pioneer in the addressable space.
He says the company has seen a 45% incremental lift in reach when targeting heavy TV viewers.
“In the future, as we think about national and linear, I think there’s an even better opportunity for addressable,” says Van Houten, optimistic about the market opportunity.
Tackling the Challenges of Addressable Advertising
Despite the opportunities, there are still challenges in addressable enablement. Van Houten acknowledges these hurdles but also highlights the industry’s progress in making addressable advertising more seamless within the ecosystem.
“Distributors and programmers are working together now more than ever to create smarter ad avails in linear,” says Van Houten.
He mentions DIRECTV’s partnership with DISH to make it easier for programmers to enable addressability, and points out the role of industry initiative Go Addressable in solving existing problems.
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Educating and Solving Through Go Addressable
Go Addressable aims to improve awareness, conduct detailed research, and provide problem-solving solutions.
Van Houten say it has launched a masterclass series aimed at the digital-first buyer to educate them on the benefits of addressability.
“When you follow that rainbow, there is a pot of gold as it relates to performance-based marketing on television,” Van Houten explains.
Predictions for the Future of Addressable Advertising
Looking forward, Van Houten makes three predictions for the future of addressable advertising:
- The emergence of a single team at agencies buying addressable in three to five years.
- A carve-out in the media landscape for addressable.
- An increase in programmatic addressable advertising.
He believes Go Addressable will continue to gain momentum, given the increasing interest from the MVPD community, programmers, and device manufacturers.
“Addressable is the most viable solution to connect those dots across a fragmented landscape,” Van Houten states. “I’m very bullish on the future here.”
