Until recently, TV reigned supreme in its dominance of advertising dollars. Only last year did digital leapfrog TV in ad spend.
There’s a reason for that. While targeting capabilities have become vastly more sophisticated across virtually every digital channel, traditional linear TV is largely the same in 2018 as it was in 1978, relying on basic demographic categories to inform ad buying.
But all that is changing. TV is finally evolving beyond its linear roots and becoming a data-driven channel. As data becomes the central driver of a new paradigm of TV advertising, four “flavors” of advanced TV targeting have emerged.
1. Data-Driven Linear TV – Of the four types of advanced TV, this provides the most reach in the U.S. for concentrated audience segments, which can be developed using first-, second- and third-party data. Major broadcasters such as CBS and ESPN offer this data-driven capability on their airwaves.
2. Addressable TV – Delivered by the likes of Comcast and AT&T-DirecTV to TV and on-demand subscribers, addressable TV offers unparalleled precision in TV advertising. Brands can dramatically reduce wasted impressions and spend by targeting households at the consumer level.
3. Streaming Services & Devices – In the era of cord cutters, it’s critical to cover all content distribution bases. Over-the-top (OTT) providers like Hulu and connected TVs provide unique inventory for brands beyond “over the air” offerings.
4. Digital Video – Many advertisers often include digital video as part of their people-based TV strategy. This provides a way to reach and engage viewers catching up on their favorite show on digital channels.