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Why Linear TV Advertising Won’t Be Devoured by CTV Despite the Flight of Viewers to Streaming

Posted by Ashley J. Swartz on Aug 11, 2020 1:00:00 PM

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.

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Topics: Addressable TV

3 Focus Areas to Make Your Addressable Linear Ad Business More Profitable

Posted by Ashley J. Swartz on Aug 4, 2020 1:00:00 PM

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:

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Topics: Addressable TV

What Are the Risks of Over-Indexing on Addressable TV?

Posted by Ashley J. Swartz on Jul 21, 2020 1:00:00 PM

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:

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Topics: Addressable TV

Why Is the Supply of Addressable Linear TV Inventory So Constrained?

Posted by Ashley J. Swartz on Jul 7, 2020 1:00:00 PM

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.

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Topics: Addressable TV

What is Addressable TV and Why Are Buyers and Sellers Eager for More?

Posted by Ashley J. Swartz on Jun 9, 2020 1:00:00 PM

To put it simply, addressable TV advertising makes it possible to deliver different commercials to different households as they watch the same show or live sports event.

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Topics: Addressable TV

How Sellers Can Adapt as Linear TV Becomes More Like Digital

Posted by Ashley J. Swartz on Mar 31, 2020 1:00:00 PM

Notwithstanding the fact that 80 to 90% of linear TV sellers’ revenue still comes from traditional, Nielsen-measured television, the ecosystem of TV advertising is looking more and more like the digital LUMAscape. That’s because an ever-increasing number of data and technology providers are in the mix as sellers ramp up their addressable businesses.

Meanwhile, digital metrics have pervaded the TV landscape, making it difficult to hear the signal through the noise of possible ways to measure, buy and sell.

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Topics: Addressable TV, TV 101

5 Takeaways to Help TV Sellers Navigate Changing Macro Conditions

Posted by Ashley J. Swartz on Mar 17, 2020 1:00:00 PM

Changing audience behaviors and the infusion of data on both sides of the value chain are forcing programmers and distributors to evolve from pure content creators and infrastructure owners into technology companies, like it or not.

These companies are making tech investments that would have been unheard of a decade ago. Take NBCUniversal, which is betting big on its own streaming service instead of letting Netflix own the audience for beloved shows like “Friends” and “The Office” indefinitely. Or Dish and Sling, which launched their own vMVPDs to distribute live and on-demand linear TV over the internet.

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Topics: Yield Optimization, TV Advertising, Addressable TV, TV 101

Addressable TV: How MVPDs Are Leading the Way Via Linear Insertion

Posted by Ashley J. Swartz on Mar 10, 2020 1:00:00 PM

Though advertisers still tend to view TV as a medium for mass reach, investment in systems that can target specific households is growing, with addressable TV ad spend projected to reach $3.37 billion in 2020, according to eMarketer. That’s a drop in the bucket when you consider how much is spent annually on TV advertising, but a stunning amount given addressable started from zero not long ago.

Scale is still limited, but the growth curve for data-driven TV ad products is unmistakable. It’s now possible to deliver household-specific ads to 64 million U.S. homes, though only for a small percentage of linear inventory.

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Topics: TV Advertising, Addressable TV, TV 101

How New TV & Video Distribution and Commercial Models Gave Rise to the Golden Age of Content

Posted by Ashley J. Swartz on Mar 3, 2020 1:00:00 PM

A decade ago, if you wanted to watch TV at home, your options for getting it onto your screen were limited. Annoyingly, you had to rely on your local cable or satellite provider to come to your home and install a set-top box. Streaming options were starting to come onto the scene, but most of the programming people cared about wasn’t available there.

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Topics: TV Advertising, Addressable TV, TV 101

How Currencies of Measurement and Sale Are Changing — And Staying the Same

Posted by Ashley J. Swartz on Feb 25, 2020 1:00:00 PM

When you examine how television advertising is bought and sold, it’s striking how many of the systems — and players — first became relevant when TV emerged as a dominant medium in the 1950s yet persist today.

Take the Gross Rating Point (GRP), which is still the prevailing metric for traditional TV advertising impact even though advertisers gripe about its limitations — specifically, the fact that it’s a calculation of reach, not performance. Or Nielsen, which has been the dominant provider of TV measurement for more than six decades and is now competing against Comscore, a company rooted in digital, to establish viable metrics for cross-platform viewing.

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Topics: TV Advertising, Addressable TV, TV 101