Addressable TV advertising has hit an inflection point. More marketers are turning to it as a “must-buy” to achieve better performance, even as overall TV ad spend remains under pressure. That was the view of one ad industry executive speaking at the Go Addressable summit this week.
The summit, which brought together hundreds of attendees both in person and virtually, showcased the growing momentum of addressable advertising, the practice of targeting specific households with personalized ads.
The top four things about addressable TV right now? “It’s grown three years in a row, 53% of buyers now consider it a must-buy, 63% say it’s a critical part of their media planning and 66% of those buyers that have *not* bought Addressable TV this year are planning to do so next year,” said Matthew Van Houten, SVP, product, operations and business development, DIRECTV Advertising, in this video interview with Beet.TV.
Convergence Ahead
The rising interest in addressable TV is driven by a desire for more effective and accountable advertising, with brands increasingly looking for data-driven solutions that can deliver measurable results.
Van Houten, incoming chairman of the Go Addressable trade group, outlined his vision for the organization, focusing on simplifying the addressable message, socializing the concept, and scaling its adoption.
“We’re big about education, we’re very big about advocacy,” Van Houten said. “We continue to partner with the bodies that matter and bringing forward the elements of addressability that the market is asking for, that our market research is telling us.”
Go Addressable plans to continue partnering with organizations like CIMM, the VAB, and the 4A’s to further promote addressable advertising and develop industry standards. Van Houten also expressed a desire to grow the membership base of Go Addressable.
Advice for Brand Marketers
For brand marketers unfamiliar with addressable TV, Van Houten’s advice is simple: try it. He points to the growing evidence of addressable TV’s effectiveness and encourages brands to join their peers in exploring this performance-based advertising solution.
“The proof will be in the pudding,” Van Houten added. “What I would say is, join your peers. Some of the data that we released today was mind-boggling in terms of the growth that we’re seeing. We know billions of dollars are pouring into Addressable TV.”
Van Houten emphasizes the importance of understanding target objectives, identifying key performance indicators (KPIs), and using data and technology to achieve desired business outcomes. “Come on in, the water’s fine,” he said.
