Over the last twenty or thirty years, the never-ending advancement of technology has completely changed the way we consume content. For TV, technology has evolved the medium from a one way, linear broadcast solution, where consumers had a limited choice of what content to watch and when, to a fully digital experience where consumers can choose to watch the content they want, whenever they want to, across any device.

As such, these mediums have become much more effective in delivering more relevant, trust-worthy advertising content to their viewers. This is why advertising heavyweights Mark Ritson and Rory Sutherland respectively state that ‘TV should be at the top of most big brands media plans…[and] remains the predominant medium for video consumption’ because it ‘conveys something which…Facebook does not.’  

To understand how TV is catching up with regards to audience targeting, there needs to be an understanding in how it is achieved, and how the targeting mechanisms differ. As such, I will separate personalised tv advertising into two distinct categories: Addressable TV and OTT.

What is Addressable TV?

Addressable TV is a term to describe the ability to show targeted content through a non-internet connected device. This can come in the form of cable, satellite, set top box or ATSC 3.0 television. According to Scott Rosenberg, GM of Roku, it was a term invented by the tv business to describe data quite simply because it could target household addresses. Now it has progressed and can now apply even more data to target users. 

Nonetheless, in 2019, it has yet to reach its full capacity as current household tech is not backwards compatible, meaning we may have to wait up to another decade until the old screens & set tops have been substituted across the country with the new tech. 

What is OTT?

At its most basic, it stands for ‘over the top’, a term to describe any tv video content that is passed through an internet connection. 

The content viewed on OTT can be both on-demand (i.e. watch the content when suited) and linearly (live). The difference, however, is that ad content can vary from device to device, thus allowing users to be shown ads at scale (nationally and internationally) that are relevant to them. 

Within OTT there is a subcategory called Connected TV. The reasoning behind this is because around 75% and 80% of all OTT content is watched on a TV, rather than on a small screened device.

Why this is the case is behaviourally significant: People prefer to watch content on the largest screen available. To rephrase, do you watch the majority of your favourite tv shows on your phone or on a large screen? 

Using TV as an effective channel

Consumers across all demographics are more open and relaxed to digesting high-quality branded content and therefore capable of consciously and subconsciously seeing and remembering the messaging. 

The underlying effect of applying tv is astronomical. Whist some would argue the CPMs for linear and personalised TV are greater than other channels, the benefits massively outweigh the costs. 

Not only does it create a halo effect on other marketing channels, but it also heavily improves brand perception, retention, and delivers the highest effective ROI. 

At Cablato, we provide brands, agencies and broadcasters the ability to deliver personalised content, at scale across all channels. If you would like to learn more about how we can supercharge your next campaign, get in touch!