Ready to Turn the CornerEducating clients key to addressable ads, say panelists 3/23/2010 09:11:00 AM Eastern
Addressable advertising is ready
to become television’s next big
success story, said a panel of executives
at B&C/Multichannel News’ “Advanced
Advertising: The Future Is Now”
event, held on Feb. 22 at New York’ Roosevelt
Hotel. The key, according to the panelists,
is whether media sales and marketing
companies can educate clients on how
addressable ads can work for them.
“I think [addressable advertising] is going
to revitalize television,” said WE TV
National Advertising Sales Executive VP
Scott Collins. He was part of the panel
“The View From Madison Avenue: Getting
Market Buy-In,” moderated by B&C
Business Editor Claire Atkinson.
Addressable advertising has picked up
steam recently thanks to test results—such
as the recent findings from a trial in Baltimore—
that show targeted ads improve
viewer tune-in and buyer efficiency. But
Leap Media Group Principal Courtenay
Harry said clients still express a lot of confusion
about addressable advertising and
need to be convinced of its efficacy before
moving money from one part of their ad
budget to the addressable space.
“It’s as if we’re re-teaching them how to
buy television,” she said.
GroupM Emerging Media Director Michael
Bologna, speaking at a Q&A after
the panel, echoed Harry’s statements.
“Addressable advertising is without a
doubt the future of the business we’re in,”
Bologna told the crowd at the Roosevelt.
“The problem is there are so many players
within this ecosystem.” He added that
“there are no new advertising dollars,”
meaning that any money going to addressable
has to come out of the budget from
another ad space.
While Harry said some clients have been
“pioneers” in the interactive ad arena, she
added that others have been sitting on the
sidelines and still need to be convinced of
One challenge is that the success of addressable
campaigns can be difficult to
“Scale is there as far as interactivity
goes,” said Rich Forester, VP of ad sales
at DirecTV, citing the more than 29 million
households that are now set up for
interactive advertising. “The results are
tricky. For some people, 20,000 [targeted
viewers] may be a home run. For others,
40,000 may not be enough.”
But in general, once advertisers get
involved in interactive, they tend to stay
there, the panelists said. While the initial
buy is a challenge, renewal rates for interactive
campaigns are high.
“It’s such a great time to be in this
space,” Harry said. “We’re at mile 24 and
we’re about to turn the corner.”