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Addressable TV advertising – The Perfect Partnership

3 min read

Hannah Hennebry

by Hannah Hennebry

Core Investment

Addressable TV advertising is the next generation of television advertising. It provides the ability to show a targeted piece of ad copy to different households while they are watching the same programme.

Last year, Sky and Virgin Media announced that they would be teaming up to collaborate on the launch of their new addressable TV advertising offer, using Sky’s AdSmart technology.

This will not only provide a new stream of revenue for broadcasters that have set top boxes in households in Ireland i.e. Sky and Virgin, but it will also allow advertisers big or small to target a more specific audience, thus allowing the viewer to see more relevant advertisements whilst adding to a more enjoyable viewing experience.

Addressable advertising provides a lower cost base for advertisers that may not be able to afford to shell out the high premiums that is involved in traditional advertising. In addition to this, smaller advertisers who may not be able to afford or want to reach large scale audiences will be able to avail of this service. Think of a car dealership in Carlow being able to target audiences within a geographical proximity to the store.

While addressable advertising has been around a while with Core clients availing of it for branch specific targeting or alongside traditional liner activity, it is still unique to see a partnership like this between two competitors.

As these two competing companies join forces, the hope will be to stem the current advertising spend pattern and reclaim budgets from the tech giants Facebook, Amazon and Google who are increasingly turning their focus towards the video content market.

Virgin Media are now on track to launch their addressable advertising by Q4 of this year. This combined with the Sky portfolio will mean that AdSmart will be accessible across 60% of commercial viewership in Ireland.

With the advantages of addressable television being clear, more brands will begin to find it harder to turn their heads away from it. An article in Forbes states

“There is no denying that addressable TV is growing in the U.S. It hasn’t quite hit critical mass, but it’s well on its way. In 2016, penetration of addressable TV advertising in the U.S. sat at 46% of households. That’s expected to grow to 74% by 2020.”

With its many benefits, it is hard to see it doing anything but grow for the foreseeable future. Addressable TV will likely be the perfect addition to arguably the most effective medium for return on investment

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