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Oracle Data Cloud Blog

The 3 benefits of advanced TV advertising

Technology is steadily advancing, especially when it comes to how consumers are viewing television. Mobile is making it easier for consumers to stream wherever and whenever, watching their favorite television shows and sporting events on their phones as they’re commuting to work, working out in the gym, and traveling the world. Internet-connected viewing devices are becoming household staples, and the list of over-the-top (OTT) streaming services continues to grow.

It is predicted that by 2023, 56.1 million households in the U.S. will be either cord-cutters or cord-nevers, meaning that they’ll access their video entertainment through a digital package that does not include cable television. Consumers’ lifestyles are changing, and this change is affecting advertisers.
 

What is advanced TV advertising?

Advanced television refers to content delivered beyond traditional television strategies. It includes streaming, interactive, and video-on-demand service. Advanced TV advertising strategies are on the rise while traditional television advertising, or what is referred to as linear TV, has seen a decline in recent years. While linear is still huge and should not be ignored, the fact remains that consumers are changing the way they consume content; therefore, advertisers must change where and how they distribute their messages.
 
According to our Essential Guide to Navigating the Advanced TV & Video landscape, there are 3 big areas where advanced TV is seeing a lot of opportunity and success:

  • Addressable TV – refers to a method of segmenting TV viewers and targeting different ads at the household through cable, satellite and set-top boxes into linear or video on demand. Six out of 10 advertisers using addressable TV believe that it’s a valuable part of their media buys and are planning to increase their investments.

  • Connected TV – refers to a home entertainment device—such as Roku, Apple TV, or Amazon Fire Stick—or a smart TV that facilitates the delivery of streaming video content.

  • Programmatic TV – refers to advertising that is purchased through an automated platform and delivered via set-top boxes. Marketers bid on inventory through sell-side providers that work directly with certain networks.

Each of these approaches offers advertisers an array of benefits not previously possible with traditional linear methods.

Benefits of advanced TV advertising

Advanced television allows consumers to have increased control over what they buy and watch in their households. And thanks to advancements in data collection and reporting, advertisers are able to tap into these audiences better than ever before, hitting them with the right messages at the right time. Here are a few areas where advanced TV brings exciting new possibilities:

 

1. Increased efficiency and control over audience reach and measurement

Programmatic television improves the targeting of ads by automating the buying process for advertisers. Performance data is available when using programmatic TV, meaning that advertisers can adjust their campaigns when necessary.
 
Linear television allows brands to purchase ad space, but it is not addressable or flexible. Therefore, ads are playing in households that do not resonate with their audiences. Marketers are simply taking a chance and hoping that whoever sees their ads has an interest in their products and purchases them.

 

2. Audience personalization

Each of the different methods of advanced TV allows a different type of personalization based on how it targets viewers.
 
Addressable TV allows a marketer to target households based on specific criteria and gives them access to 1st and 3rd party audience households. Addressable TV also has the ability to use multiple versions of an ad to appeal to the right audience.
 
Therefore, viewers can be watching the same network at the same time but see different messages based on their interests. This gives advertisers the capability to test different formats on different audiences. It also saves a significant amount of money from being wasted on traditional television buys.

 

3. Cross-device connectivity

Connected TV also gives advertisers the ability to access 1st and 3rd party data that allows for cross-screen targeting and user-controlled viewing experiences. For example, if viewers are accessing specific content on their phones, similar ads may pop up on their televisions due to cross-device identification.
 
Getting granular insight into a customer’s touchpoints is an extremely powerful tool, allowing brands to tell a story across various platforms. When thoughtfully executed, cross-device connectivity can be a strong driver of increased brand association.


Advanced TV is the new norm


Advanced television is becoming the norm for consumers and now advertisers. The ability to better target audiences and receive measurable results is an exciting advancement in what has traditionally been an expensive and oftentimes inconclusive investment. The one-size-fits-all method of television advertising is a thing of the past, as marketers consider the promising opportunities ahead.

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