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Addressable TV: the pros and cons of ads made just for you

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by Startacus Admin


Considering using Addressable TV as part of your marketing strategy? Here are the advantages and disadvantages of doing just that...

photo-1560169897-fc0cdbdfa4d5.jAddressable TV is a form of television advertising that is delivered to a specified audience at a household or individual level rather than broadcast to the whole viewing audience of a certain channel.

With that said, let us discuss both the advantages and disadvantages of addressable TV - ads personalized just for you.

What is Addressable TV?

Addressable TV enables media outlets to target different advertisements to different households who are watching the same TV programme or channel. For example, you and someone else could be watching the same programme at the same time, on a different device, and could receive different advertisements that are personalized for you.

Pros of Addressable TV

  • Use Data to Target Consumers Specifically

One of the most significant advantages of addressable television is the ability to use data to precisely target people and eliminate any data wastage as a result - and there is plenty of valuable data available too. It allows media companies to combine their own first-party data with data from third party sources, allowing brands to achieve a very large reach of their target demographic.

Enables you test the market

A vital component of any business is market testing before releasing a product or service. Addressable TV might be an ideal form of marketing/advertising for small or medium scale businesses that are seeking to invest in TV advertisements for the very first time. You won't have to spend a lot of money to target those consumers and demographics that are hard to read out to, if utilizing this method.

Advantage over competitors

pexels-photo-3768898.A large number of households are considered addressable, making it a massive market to get involved with. Taking advantage of the addressable audience will allow your company to gain an advantage over your competitors.

You could, of course, try out this smart new method without investing too much money. But if you intend to use this method for the long term, you will need to do more than merely experiment with it. But you should always make sure you know exactly what you’re doing before diving into a market you’re unfamiliar with and investing too much.

Cons of Addressable TV

  • Privacy

Addressable TV raises privacy concerns as all television media is extensively regulated, and advertisers must make sure that ads targeting audiences and people are compliant with regulations - much like with most other online advertising. The EU's impending e-privacy regulation is likely to have a significant effect on how website cookie data is handled, thereby limiting advertisers' visibility into consumer behaviour.

  • Cost

With the significant manufacturing expense of personalising assets and being inventory sold at a premium, specifically targeting individual homes and consumers can be a costly proposition. Businesses and media companies which go through with this form of advertising face a risk of not being able to reap the benefits of boosting customer sentiment by ensuring all viewers see the same advertisement.

And there you have it - the most important pros and cons of using addressable TV advertising for your next targeted marketing campaign.

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Published on: 7th January 2022

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