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Advanced Advertising Conference Shows that Advanced Advertising and Programmatic are Two Sides of the Same Coin

April 18th, 2016   ||    by Charlene Weisler

The recent MultiChannel B&C Advanced Advertising conference may have been titled “Advanced Advertising,” but much of the conversation also revolved around programmatic. And this makes sense since, for many in the industry, addressable and programmatic are really two sides of the same consumer targeting coin.

Both initiatives help advertisers focus in and target the consumer segments they want to reach. Targets can be addressed by segment, by pinpointing the exact household in a specific addressable footprint, while programmatic targets by segment in a wider digital population. Each has their value and, in combination, can be a powerful targeting tool.

The conference posed and answered many questions. Here are a few:

Where Is Addressable Advertising Headed?

Kent Gibbons, Editor for Multichannel News, moderated a panel at the Advanced Advertising conference on taking addressable to the next level. Some companies with access to STB household data, like Cablevision, have been proactive in how they leverage their dataset for addressable advertising.

According to Jennifer Koester, SVP Advanced Advertising Product and Data Analytics, “Cablevision data is truly addressable to the individual household where neighbors will see different commercials based on their target segment. It is driven by STB tuning data. We can take tuning data and put it together into a media plan.”

When Will We Go Beyond Two Minutes Per Hour?

Local time is fine, but what about national time? There is demand to accommodate more than two minutes per hour, but when will that occur? Koester believes that there are some technical hurdles to overcome while Matthew Van Houten, Director, Strategy and Business Development, AT&T Adworks, noted an inherent control challenge by saying, “The technology is owned by operator while national advertising inventory is owned by the national media. Both are stubborn so I don’t foresee national addressability for at least another seven years.”

Koester, however, is more optimistic. “Agencies can take a lead to break the stalemate,” she believes.

Do Clients Confuse Addressable With Programmatic?

In a word, yes. According to Michael Bologna, President MODI Media, “Most know addressability as a one-to-one insertion into the STB. But there is confusion with programmatic because so many companies have their own story that is focused on their own little piece. A lot of advertisers are confused by the term ‘programmatic’ and what to do with it. We say to them: Think about whom you really want to reach in TV and we can help you reach them via addressability.”

Tracey Scheppach, EVP Precision Video Director Starcom MediaVest Group, agreed, “There is not a lot of confusion among my clients, but there is a lot of confusion as to what programmatic is or isn’t. They feel that it has potential, but there is a lot of confusion.”

Next Steps

In sum, the media world, through continually improving technology, can better serve ads to the right consumer, in the right place, at the right time whether we use addressable or programmatic. As Scheppach noted, “TV works and addressable works harder. Properly targeted it will drive sales.”

To learn more about media conferences, contact Videa.

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