The Addressable TV Guide: Answering Your Frequently Asked Questions

Welcome to The Addressable TV Guide! This is part 2 where we will begin to uncover the answers to some of your most frequently asked questions about Addressable TV. Come back next week for part 3 where we will dig deeper into audience targeting strategies.

To catch up on other posts in this series, visit our Addressable TV hub.

According to a recent report published by Deloitte Global, Addressable TV advertising is projected to generate approximately $7.5 billion globally in 2022 – about 40 times more than in 2012. With such tremendous growth, it’s important to keep in mind that $7.5 billion only reflects 5% of the global $153 billion TV ad market. So, what is stopping Addressable TV from achieving greater market share?  

From terminology to technology, there are many aspects of Addressable TV and CTV that continue to raise questions for even the most seasoned TV advertiser. For instance, in our previous post, we explained that while some definitions limit Addressable TV to Addressable linear STB, Cadent expands that definition to include Addressable VOD, OTT, and CTV. But beyond semantics, just how Addressable TV works, and what audience targeting or attribution is possible is often misunderstood.  

Let’s explore further.  

Reaching Your Target Audience 

As the TV ecosystem converges, so do TV buyers. Linear TV advertisers have had demo-based buying ingrained in their workflows. In contrast, those from the digital world have become experts in audience-based buying. With Addressable TV, it’s possible to have the best of both worlds – the reach of linear with the precision of data-driven targeting.  

Addressable TV allows advertisers to match first- and third-party data to TV households. And although many advertisers worry that Addressable TV lacks the scale of cable or broadcast, there are over 100M addressable households in the U.S. So, by connecting audience segments to Addressable TV inventory, advertisers gain access to a considerable pool of potential customers.  

From TV Ad to Attribution

In today’s advertising world, everything rolls up to attribution. Determining the effectiveness of your ad, and more specifically, your return on ad spend (ROAS) can be the difference between keeping or losing a client. Addressable TV empowers advertisers to measure a variety of business outcomes such as sales lift, web traffic, foot traffic, brand health.  

Curious to learn more about what today’s Addressable TV can do for your brand?  

Read more of our answers to your frequently asked questions, download our new guide.