Targeted Advertising

Addressable advertising is created for television audiences such that commercials are delivered to a specific audience. This form of advertising delivers relevant messages to specific audiences based on a certain criteria. They may be based on demographic, psychographic, geographic information; or on other consumption or consumer information which pertains to a group of individuals. There have been some trials which show that television viewers will stay engaged for longer periods of time when the commercials are directly related to their interests. This is one reason addressable advertising is effective and helps businesses remain competitive in the age of digital advertising.

For those who watch any amount of television, there is a major insurance company who seems to have ads everywhere. However, the face of these ads may soon change as the company is launching a new effort to reach renters. Their intent is to create ads which are marketed to only renters so that they can convince them to purchase their renter’s insurance. This is just one of the large companies which are making a turn to use addressable advertising.

A marketer can use addressable ads and predetermine which types of consumers will be able to view the commercials. For example, if a subscriber to a particular cable company is a homeowner they will not even see the advertisement for renter’s insurance; only those consumers who are renters will be able to view the ads. Many people, especially marketing specialists, are applauding this new blend of marketing and media. Basically it gives the business an opportunity to display two ads to two separate audiences at the same time.

Possible Implications

What are some of the possible problems with addressable ads? Well for one, the demographics could be a problem. One test for these types of ads was done inCanada. Those living in an affluent area were shown ads for luxury cars while those living outside saw ads for compact cars and minivans. The trouble is that even though some people reside in an affluent neighborhood, it does not mean that they are actually affluent. Also worth noting is that most of the population in an affluent neighborhood may be made up of mostly younger people; the majority of the rest of the population may be those who are elderly and are trying to simply relax and enjoy their lifelong savings. Will this type of addressable advertising be a success? It is yet uncertain as to how the demographics and spending power will be determined in situations such as these.

Another potential problem with addressable advertising is that of privacy. Privacy concerns may end up presenting a barrier to consumer acceptance of these techniques. When consumers vocalize their concerns enough, there could be possible intervention on the part of regulators. This could drastically slow down the development or growth of these advanced forms of advertising.

Off to a Slow Start

These advanced advertising techniques have been going on for some time already. It just seems to be progressing rather slowly. Many suggest that in as little as 5 years there will be some marked changes. An addressable TV ad will target an area of specific households or a narrow geographic area. Many are having a difficult time convincing marketing specialists that there is some huge advantage to be had for this type of advertising. One of the biggest challenges they face is that the current advertising system is not really broken. One huge plus is that traditional television advertising remains one of the most effective types of media available.

Using television is a very effective technique; it’s still all about reach. Using television is quick and simple to use this form of advertising. But it is also one of the most efficient methods advertising tools available. It is one of the most effective ways to reach a huge audience with brand advertising. Even though many are taking a step back to see how it’s going to work out, being able to target ads for a specific demographic or area is one of the most effective ways to reach an audience. Television is one of the best media possible other than the use of social marketing. Other forms such as newspapers and magazines have dropped off significantly in the last few years leaving television alone at the top.