Addressable TV is not only delivering better business results for existing advertisers, it’s opening up television to smaller brands that haven’t been able to use it before.
At the I-COM 2018 conference (San Sebastian, April 2018), Graeme Hutcheson, director of digital and Sky Adsmart at Sky in the UK, said the ability to target individual homes and viewers with ads meant greater precision and more efficient advertising. This, he claimed, was improving results by as much as 50% for advertisers, and attracting new brands.
“We believe that addressable TV really opens up TV to a flood of new smaller advertisers who can now use TV in a far more tactical way,” he said. “Three-quarters of the advertisers we talk to are completely new. At the same time…we try to make it as meaningful as possible for big brands as well. So, 71 of the top 100 advertisers have used it as well.”
Addressable TV via Sky is available in about a third of UK homes currently, and through Sky’s partnership with Virgin Media it reaches 40% of UK homes. Hutcheson predicted it would be able to address 60% of the country’s TV homes by 2020. Adsmart primarily targets live or ‘linear’ viewing, which still accounts for 87% of TV viewing in the UK.