Furious's Blog

No matter what data source you consult, the flight of TV viewers from traditional linear TV to Netflix, Roku, Hulu, Disney Plus and any number of other VOD platforms is unmistakable. Consider that 40% of adults in U.S. TV households are now watching video on a TV set via a connected device on a daily basis, compared to just 1% in 2010.

Addressable CPMs can be 10 to 20 times higher than a seller’s effective CPM across the rest of their linear portfolio, naturally leading sellers to want to sell as many addressable impressions as they can. But sellers need to be strategic in their approach to this channel because blindly offering as much of it as possible can negatively impact the value of remaining core inventory.

Providing addressable linear advertising is neither easy nor cheap for sellers. When you factor in headcount to manage extra volume, complexity of sales and execution, expense of data sourcing and data management, and legal compliance surrounding data privacy and security, the costs can wipe out the profit potential of selling inventory at high prices—particularly when inventory remains limited.

Here are three areas sellers should focus on to ensure that their addressable linear ad business is profitable in the context of their portfolio as a whole:

Given the limited supply of addressable inventory and the high value to advertisers of a narrowly defined audience, it follows that many linear TV sellers view addressable as their most valuable inventory and want to sell as much of it as possible. Remember that addressable CPMs can be 10 to 20 times higher than a seller’s effective CPM across the rest of their linear portfolio. Sounds like a win-win/can’t-lose bet, but here’s the catch:

As of press time, the NBA and NHL are poised to return for the playoff season, which is a huge boon for the TV advertising ecosystem and for sports fans.

Brands and media buyers want their TV ads to reach specific consumers (think yogurt-eating moms in Duluth, not women between 18 and 54), just as they can do with their digital buys. And sellers with the data and targeting capabilities to offer addressable are eager to sell more of it due to the high CPMs it can command.

When live sports disappeared before our eyes in mid-March, many of us in the industry saw the pandemic in a dramatically new way. The virus became real. Aside from wondering how it would affect us and our families, there was real worry as to what advertisers and broadcasters would do in the absence of sports.

This video explores the rise of CTV and whether it’s growing at the expense of traditional linear television. It’s the ninth in a series of educational videos Furious has produced in collaboration with Beet.TV. Below is a sampling of Part 9.

Golf returned to tournament action with the Charles Schwab Challenge in Fort Worth, Texas, earlier this month, which was a watershed moment for live sports in the wake of the pandemic.

This video explores how “panic porn” came to dominate the TV airwaves and why viewers are burned out, as well as how brands will need to reinvent themselves to show they’re purpose-driven. It’s the eighth in a series of educational videos Furious has produced in collaboration with Beet.TV. Below is a sampling of Part 8. 

With the pandemic continuing to ravage the world and sports leagues struggling to find ways to play and televise games without fans, the fate of Major League Baseball is still unknown.