With eight U.S. multichannel video programming distributors (MVPD’s) offering addressable television inventory, inadequate scale is becoming less of an issue. But achieving the \u201choly grail\u201d will require a new approach to the cost of creative production.<\/p>\n
That goal is \u201cto be to find the right segment and then create all these different creative executions for the ads to resonate at higher rates,\u201d says Jamie Power, COO of addressable inventory aggregator one2one Media.<\/p>\n
Right now, \u201cthe majority of clients are only using addressable as a means to increase frequency against high-value households simply because they can\u2019t afford to do four spots,\u201d Power explains in this interview with Beet.TV at the Advanced Advertising Summit<\/a>. \u201cAnd it works.\u201d<\/p>\n But it works even better when advertisers create multiple spots. \u201cWe see that it resonates at higher rates and we see higher ROI. But then when you factor in the cost of the creative, then the ROI goes down. So we just need to work out the creative model.\u201d<\/p>\n The traditional creative model \u201cdoesn\u2019t work because creative is too expensive. So I think there\u2019s going to have to be modifications made to efficiencies around creative so we can have different segments against different creative units.\u201d<\/p>\n Over the past half-dozen years, addressable has been expanding to ever-larger scale \u201cbut it\u2019s been challenging for advertisers to execute,\u201d Power<\/a> says.<\/p>\n