With addressable television advertising poised to reach $3.04
billion in 2019, the media industry is now beginning to take a fuller look
on its impact on the marketplace. But, despite the enthusiasm for addressable
TV, a recent MediaVillage survey
released by Jack Myers TomorrowToday,
found that there is an industry knowledge gap that needs to be bridged to facilitate
its adoption progress.
Myers surveyed of 1200 advertiser and agency executives,
asking them to rate their overall knowledge of addressable TV, the importance
of it in the future for media generally and TV specifically, the current level
of interest and the top performing companies in the landscape.
The industry is working hard to dispel
the myths of addressable TV. Brett Hurwitz, Business Lead, Advanced TV,
Oath, noted that there is a misconception that addressable is better for
marketers with narrow population targets and that addressable TV CPMs carry a
premium which makes it too expensive for advertisers with broad targets. But, higher
CPMs are actually more efficient considering addressable’s targeting capabilities
and its ability to avoid all of the waste in traditional TV advertising.
Level of Knowledge and the Importance of
Addressable TV
But are
industry executives sufficiently knowledgeable in the advantages of addressable
TV? The Myers study found that, among those polled, 38% of advertisers and 35%
of marketers reported that they were sufficiently knowledgeable on the
advantages of addressable TV versus linear (top 3 boxes on a 10 point scale).
Many fell in the middle range indicating that a little more education could
help accelerate addressable TV’s growth.
Notably, addressable’s
messaging has penetrated agencies more effectively than at brands. The study
found that generally speaking, agency executive felt more secure in their
knowledge of the format with only 9% reporting low (bottom three boxes)
understanding while 22% of marketers felt that way. There is obviously more
work to be done at the brand level.
Yet, no matter what their knowledge comfort level was, both agency
executives and marketers recognize the importance and high value of addressable
TV for their industry and agree (63% for agency and 49% for marketers) that
this format will be important and relevant to their future business. Notably, very
few (4% and 8% respectively) felt that this advertising form had low
importance. But the differential in high importance between the 63% for
agencies and the 49% for marketers indicates that more work needs to be done to
reinforce the value of addressable TV among brands and get them off the fence.
“It's logical that agencies are more knowledgeable,”
explained Jack Myers, Media Ecologist and Founder of MediaVillage, “But the
disconnect among marketers between using addressable and their knowledge is
notable.” The industry could be doing more outreach among marketers to insure
that they feel confident in their knowledge of addressable that will then reinforce
their advertising decisions in the format.
Level of Involvement on Addressable TV
Because of
the recognized importance of addressable, the study revealed that more and more
of the industry is moving towards this type of advertising with 43% of agencies
and 51% of marketers currently highly involved (top two boxes) in it. But there
is still a significant percentage of executives (27% and 29% bottom two boxes)
who are still on the sidelines which represents an area of opportunity for the
industry.
The approach
for outreach might be guided by the recruitment of the study itself. “The
agency respondents reflect individual executives at different levels so
comparisons cannot be made between agencies and marketers. A marketer
respondent would represent a company; an agency respondent would be reflecting
personal experience,” stated Myers.
The Best Companies in Addressable TV
Which are
considered the best companies in the addressable TV space? According to those
polled, DirecTV leads the field with 60% of agencies and 51% of marketers
ranking them high (top three boxes) in industry leadership.
While actual
rankings varied slightly between agencies and marketers the top ten companies
were the same for both groups:
Top 3
Boxes
% AGENCY %MARKETER______
DirecTV 60% DirecTV 51%
Comcast/NBCU 55% AT&T 51%
AT&T 54% Verizon/Oath 50%
Verizon/Oath 50% Comcast/NBCU 47%
DISH 47% Disney/ABC 46%
Disney/ABC 44% Spectrum 45%
Spectrum 37% DISH 44%
FOX TV 36% FOX TV 44%
CBS 26% Charter 35%
Charter 24% CBS 34%
The following companies have some work to do in increasing
their presence and perception as addressable TV leaders among agencies and marketers.
These companies received the highest percentage in the bottom three boxes for
leadership:
Bottom 3
Boxes
% AGENCY %
MARKETER______
Altice 21% Altice 19%
Sinclair 19% Sinclair 16%
Cadent (one2one) 15% Cadent (one2one) 17%
CBS 12% CBS 13%
Charter 12% Charter 13%
Conclusion
In this
first study by Myers, it is clear that there is work to be done in the industry
to more clearly state the value of addressable TV and raise the level of
knowledge (and therefore comfort) in the advertising format. But
overwhelmingly, the industry agrees that addressable TV is the future as a
valued and important advertising format. Now we have to work hard to dispel any
remaining myths and raise the general level of knowledge.
“As audiences shift to OTT platforms and as advanced
technologies accelerate the reach potential of addressable media, television
will have a new communications and commerce application across the consumer
journey,” explained Myers. “It’s important to understand how effectively the
changing value proposition of television is being understood. This initial
outreach is the first in a series of studies,” he concluded.
This article first appeared in www.MediaVillage.com
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