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: