Even as the availability of addressable television advertising continues to grow, delivering more precise audience targeting, it will likely always be a complement to traditional mass advertising efforts. In the meantime, it\u2019s bringing TV to brands with targets heretofore too small for spending on the medium and providing valuable targeting insights, according to Lyle Schwartz, Chief Investment Officer at GroupM<\/a> NA.<\/p>\n

In this video interview with Beet.TV, taped last week at the Cadent & one2one Media UpFront event<\/a>, the media veteran talks about the three buckets of TV ads\u2014broad distribution, indexing by overlaying data and \u201cserved\u201d\u2014along with the risks of not doing addressable well.<\/p>\n

The \u201cserved\u201d bucket \u201ccan be digital, but addressable fits into served, which is we\u2019re sending an ad right to the household or person that we want to receive that message,\u201d says Schwartz<\/a>. \u201cThat area over time is growing and the distribution capabilities are growing.\u201d<\/p>\n

Many marketers are very targeted, something has limited their use of traditional television advertising. \u201cThey can\u2019t afford it because their target may be one or two percent of the United States,\u201d Schwartz says.<\/p>\n

Addressable \u201callows us to serve those ads to that small population and allows our communications options to grow for those type of ads.\u201d<\/p>\n

Another benefit to addressable is that it can facilitate lots of testing, according to Schwartz. \u201cBy looking at people, you no longer have to go county-to-county or state-to-state. We can do on-off right next door to each other and make sure that the people are very similar.\u201d<\/p>\n

Nonetheless, addressable will likely never constitute 100% of an advertiser\u2019s spending \u201cbecause you still want to feed the top of the bucket. But when you get to the actual sales and last step, last quarter mile, addressable focused in that manner seems to have a very good return,\u201d Schwartz adds.<\/p>\n

He\u2019s still optimistic about the growing penetration of addressable TV, as more MVPD\u2019s warm to it, despite current constraints on the available volume of inventory.<\/p>\n

\u201cSo I just think that this area is going to continue to grow, and as the economies and capabilities grow and technology is dispersed in the United States, it will have a tremendous upside potential.\u201d<\/p>\n

Schwartz cautions that \u201cpotential\u201d can be \u201ca very dangerous word.\u201d In the context of addressable TV, one challenge is learning how to use it \u201cin the right manner and make sure that it\u2019s an appropriate use of the vehicle.\u201d<\/p>\n

This is because with addressability, \u201cyou\u2019re either going to hit the person or not. And if the targeting is off, the person\u2019s not going to get any impressions. That\u2019s why I only think that addressable is going to be a component of the communications platforms used, not the sole.\u201d<\/p>\n

This video was produced at the Cadent & one2one Media UpFront 2018 industry summit.\u00a0 \u00a0You can find more videos from the series here<\/a>.\u00a0 \u00a0The sponsors for this series are Cadent and one2one Media.\u00a0 \u00a0\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Even as the availability of addressable television advertising continues to grow, delivering more precise audience targeting, it will likely always be a complement to traditional mass advertising efforts. In the meantime, it\u2019s bringing TV to brands with targets heretofore too small for spending on the medium and providing valuable targeting insights, according to Lyle Schwartz, […]<\/p>\n","protected":false},"author":17,"featured_media":51225,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[]},"categories":[7156],"tags":[5287,5867,6363],"_links":{"self":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/51179"}],"collection":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/comments?post=51179"}],"version-history":[{"count":0,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/51179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media\/51225"}],"wp:attachment":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media?parent=51179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/categories?post=51179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/tags?post=51179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}