by Wayne Friedman
Source: www.mediapost.com, February 2024
Working addressable TV advertising into a brand’s media mix consistently helps advertisers target audiences to obtain an average 40% reach, according to new research from Coalition for Innovative Media Measurement (CIMM) and Go Addressable, a coalition of pay TV distributors.
According to the research, the incremental target reach increases regardless of a marketer’s target audience penetration.
For instance, low-reach penetration brands — defined as under 20% — achieved a target audience reach of between 37% and 45% on average.
High-penetration brands — those with greater than 70% research — also had a similar result, with an incremental target audience reach of between 37% and 44%, on average.
Janus Strategy & Insights and Sequent Partners, two consulting firms commissioned to develop the study, interviewed 20 agencies and publishers for insights.
They two firms also conducted an in-depth analysis of 145 addressable TV ad campaigns, which measured the reach and frequency of both linear TV and addressable advertising.
The research revealed that “effective” CPMs (eCPMs) for addressable campaigns are more efficient than linear eCPMs when it comes to “light” consuming linear TV viewing audiences.eCPMs in digital advertising are a metric that involves dividing the total earnings from an ad campaign by the total number of impressions, multiplied by a thousand.
In addition, addressable TV — by way of messaging on multichannel video program distributors (MVPDs) — is more precise and outperforms IP address matching. The study found that 95% of addressable households were matched via postal address compared to 60% via IP address.
After 30 days, 82% of addressable homes remained accurately matched compared to 44% of connected television (CTV) homes.
While many analysts believe addressable TV media campaigns work best for adult viewers — and that addressable advertising on connected TV platforms is best used to target younger audiences — the data show that CTV addressable and MVPD addressable play complementary roles in reaching adults 18-49.
