The media market is being upended, not only by its own ingenuity, but also by advancing technology. These advancements expand options for advertisers and create increasing demand for data-driven campaign KPIs, putting agencies and brands in a tough spot.
This seismic shift that is pulling viewers away from traditional linear national television viewership and towards OTT consumption is the same one that is disrupting the ad market: Fickle, choosy, demanding viewers who are consuming media across an ever expanding choice of platforms at varied times.
So how do brands and agencies better cement brand loyalty, employ household-level targeting and get a clearer picture of their total effective reach? The answer lies in addressable advertising.
Back in 2010, the majority of U.S. eyeballs remained fixed on national over-the-air television programming. But even then, consumers were beginning to turn to other viewing options such as streamed digital programming. Along the way, they cut ties with cable and moved away from over-the-air programming to a more on-demand viewing experience.
And, as we know, where viewers go, so go the ad dollars.
Spending on digital ads grew from $16 billion in 2010 to $92 billion in 2019 — an impressive +475% jump (yes, you read that right) in less than a decade.*
So Go the Ad Dollars
By 2020, the peak amount spent on national TV ad dollars is estimated to be $56.4 billion. Compare that to the OTT ad market, which is expected to top $109 million, with no downturn in sight. For the first time ever, digital ad spending in 2019 will account for more than 50% of the total US ad market.**
What’s driving that growth? Video.
*eMarketer report, 2018
**“Digital Ad Spending 2019,” eMarketer report, 2019
So how do agencies and brands tap into this burgeoning market — even in the midst of unpredictable viewers and ever-expanding content options? The ways that viewers consume video have been evolving over the last 10 years, prompted by the sheer number of choices that now exist in the streaming space. And at the same time, new tools have been created for brands and agencies looking to tap into tracking audience engagement and cementing brand loyalty.
Identifying the Tool of Choice
For many, the tool of choice is addressable advertising. Addressable advertising gives buyers a guaranteed way to target individual households watching live or on-demand TV programming. Ads are prepacked for a specific, authenticated household that is verified by IP address or user ID. Not only are ads on an addressable OTT platform delivered in a brand-safe, fraud-free environment, these ads – delivered with targeting advertising capability — report higher engagement and unduplicated reach.
Addressable advertising also offers household-level targeting. That means that the right ad is delivered to the right consumer at the right time — regardless of how, when or where the viewer begins watching content.
Targeted advertising also offers brands and agencies a deeper and wider choice of “behind-the-screens” tools, including advanced measurement capabilities, targeted personalization abilities, improved cross-platform capabilities, unduplicated reach and vast scale.
Creating a Clearer Picture
There are not many national content providers offering such options. DISH Media has devoted efforts over the last two years to measure and track addressable advertising. According to a 2018 Ad Age article, when DISH Network first announced its Sling TV bundle, the offer came with the innovative ability to target very specific audiences while giving marketers, brands and agencies a clearer picture of total reach.
At the heart of this addressable advertising offer is DISH Media’s ability to target and reach individual households no matter when or where a viewer watches a program. The proof of success is this: Advanced TV ad sales have remained a key priority for the content creator and the advertising community.
Though it remains to be seen exactly where the ad dollars go in 2020, video content is expected to be the single major driver of growth next year and beyond.***
***Digital Ad Spending 2019,” eMarketer report, 2019