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AIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

11 July 2024

Targeted advertising: How addressable TV is revolutionising your marketing

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In today's digital world, targeted advertising plays a crucial role in the success of marketing strategies. Companies are increasingly focussing on targeted advertising in order to deliver their messages directly to the right target group. Addressable TV is becoming particularly important in the television sector. Here, advertising messages are no longer played out in a standardised manner, but are adapted individually to specific viewer groups. Targeted advertising makes it possible to minimise wastage and increase the relevance of advertising. Many companies report that they achieve better results and achieve their marketing goals more efficiently through targeted advertising.

How does targeted advertising work on television?

Addressable TV uses data such as demographics, geography, interests and purchasing behaviour to target advertising to specific households. In contrast to traditional television advertising, where all viewers see the same adverts, Addressable TV displays individual advertising content. This is done via smart TVs or streaming platforms, for example. The technology makes it possible to personalise advertising based on user profiles. This means that a household with children can see different advertising messages than a household without children.

A practical example: a manufacturer of children's products can target its advertising at families who are interested in baby products. Another example is a fitness centre that targets its advertising at people who are regularly interested in sport and health. A car manufacturer can also target its advertising at households with a certain income or living in a certain neighbourhood.

Advantages of targeted advertising on television

The advantages of targeted advertising on television are manifold. Companies can tailor their advertising messages precisely to the needs and wishes of their target group. This increases the likelihood of a positive response. The efficiency of advertising expenditure is maximised because wastage is minimised. Modern platforms such as Google Ads, Facebook and Instagram already use advanced algorithms to deliver adverts to users in a targeted manner. This technology is also being used more and more frequently on television.

Another advantage is the measurability of the campaigns. Companies can analyse the success of their advertising campaigns in detail and optimise them in a targeted manner. This allows them to quickly recognise which advertising content is particularly well received and which needs to be adapted. The personalisation of advertising leads to greater relevance for the viewer and increases the advertising impact.

Practical use cases of targeted advertising

A manufacturer of household appliances can target its advertising at households that are interested in new kitchen appliances. Another example is a tour operator that targets its advertising at people who are regularly interested in holiday destinations. An online shop can also target its advertising at customers who have already bought similar products.

Another example is a streaming service that displays its adverts to users who are interested in certain genres. For example, a provider of series can target its advertising at fans of crime thrillers or comedies. A fitness app provider can also target its adverts at people who are regularly interested in sport and health.

Targeted advertising and iROI coaching

iROI-Coaching supports companies in the planning and implementation of targeted advertising. Many clients come to us with the question of how they can get their advertising messages to the right target group. iROI-Coaching provides impetus and supports projects relating to targeted advertising. Clients often report that they achieve better results and achieve their marketing goals more efficiently through targeted advertising.

Another example is a company that targets its advertising at customers who have already purchased similar products. Another example is a fitness centre that targets its advertising at people who are regularly interested in sport and health. A car manufacturer can also target its advertising to households with a certain income or living in a certain neighbourhood.

BEST PRACTICE with one customer (name hidden due to NDA contract) and then the example with at least 50 words.

My analysis

Targeted advertising is revolutionising marketing on television. Companies can tailor their advertising messages precisely to the needs and wishes of their target group. This increases the likelihood of a positive response. The efficiency of advertising expenditure is maximised because wastage is minimised. Modern platforms already use advanced algorithms to deliver targeted adverts to users. This technology is also being used more and more frequently in television. The measurability of campaigns makes it possible to analyse their success in detail and optimise them in a targeted manner. The personalisation of advertising leads to greater relevance for the viewer and increases the advertising impact.

Further links from the text above:

Targeted advertising - Wikipedia

Targeted Advertising - Bureau Klein & Größer

ATV - Addressable TV explained simply & quickly

What does targeting mean? - mso digital Wiki

Targeting for films and television programmes - X Business

Targeted advertising: examples of targeted advertising - HubSpot Blog

Targeting - Definition - Online Marketing Practice

Targeting - Definition & Tips - Complac Lexicon

Intelligent targeting when combining TV with digital advertising - Adzine

Targeting of online advertising: basics, forms and ... - Uni Flensburg

For more information and if you have any questions, please contact Contact us or read more blog posts on the topic internet Return on Investment - Marketing here.

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