Thinking / You Talkin’ to Me? Addressable TV and the Rise of One-to-One Advertising

You Talkin’ to Me? Addressable TV and the Rise of One-to-One Advertising

For years now, marketers have been able to engage with their customers on a one-to-one basis via personalized emails, but doing so with the power of television has been relegated to engaging with audience segments.

Not anymore.

Now, with addressable TV, marketers can display ads personalized to a household using analytical profiling. And, right now, there are nearly 50 million homes that are addressable.

The concept is pretty simple. As a subscriber to a TV service like Altice USA, Comcast, DIRECTTV and DISH Network, consumers generate a lot of data from their set-top box: subscriber information, viewer patterns, Census data, ZIP+4.

This data is then shared with third-party services like Datalogix, Rentrak, WideOrbit, etc., which make it available to media buying platforms (like the Marcus Thomas Trade Desk).

Because this data is shared with third-party services, it’s possible to connect the action on one platform to the action on another, says Raphael Rivilla, Partner, Media Connections and Planning at Marcus Thomas. “We know when a customer has seen a banner ad on a website, for example, and we can show that person a corresponding television commercial (or vice versa).”

“Connecting the dots like this is powerful when selling just about anything,” Rivilla said, “but it's particularly powerful when marketing expensive, complex products or services.”

"When a customer is looking to buy something expensive, they tend to do more research,” Rivilla adds. “Knowing where they’ve looked and what they’ve seen is very helpful to know what additional information they may need to move them down their buyer journey.”

Three things are making addressable television possible today: the processing power in the set-top box, the consumer data collected by numerous sources, and the power of media trade desks to combine this data with real-time media and advertising data. The result is advertising that is planned with data in hand and shaped by data coming from the actions of the consumer.