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Addressable TV needs to scale

News, 26 November 2015

FORT LAUDERDALE, FL: Addressable TV has been proven as a business model in 2015 and now needs to scale up, according to industry figures.

"It's an exciting time," according to Steve Marshall, CEO of Invision, a supplier of multi-platform advertising sales software, who outlined to Beet.tv a two-stage process as regards scaleability with addressable.

"There's the technology, being able to scale the backend technology to serve more ads in more commercial breaks," he said. "And then there's scaling the revenue."

He said he was "very bullish on the ability to do both" but he thought they would happen "in different time frames".

"2015 was the year when the addressable model was proven," he added. When it comes to scaling the revenue, "over the next two to three years, you will see significant increases".

It will take that long because "they've really just scratched the surface of the inventory – MVPDs have only lit up a small percentage of their two minutes per hour."

The challenge ahead for a vendor such as Invision, he explained, is to give those multichannel video programming distributors the tools to understand how much more inventory they should give to addressable as compared to traditional linear TV.

The timeline envisaged by Marshall was echoed by Oren Harnevo, CEO of video advertising technology company Eyeview, who concurred that addressable TV had yet to scale.

"This year is a very big opportunity for brands to put more money in – in TV advertising that's targeted to the household or to a small group or segment," he said.

"The concept of being able to target according to CRM data – or third party data – on television is crazy-unique," he added.

The big change he suggested had come when MSOs and MVPs had got on board and opened up their data.

"Television needed to upgrade, to be more relevant ... the MSOs and MVPs got it. When they open up, the agencies, marketers and the vendor community start to take it in. Now there's a wave of 'this starting to happen'."

Data sourced from Beet.tv; additional content by Warc staff