The days of blanket TV advertising are long gone, as targeted advertising has permanently changed traditional television. Thanks to modern, data-based technologies, advertising messages can be tailored specifically to individual households and their needs. This makes advertising contacts more relevant and significantly minimises wastage. Many companies report that they achieve their campaign goals more efficiently and increase the impact of their advertising measures when they use targeted advertising[1].
This is a clear difference to linear television, where all viewers see the same adverts - regardless of age, interests or purchasing behaviour. In the digital world, on the other hand, targeted advertising works like a kind of customised advertising suit: it is precise, to the point and speaks directly to the target group.
How does targeted advertising work in modern television?
Targeted advertising on TV, also known as addressable TV, uses a variety of data sources to customise advertising messages. These include socio-demographic characteristics, geographical information, household sizes and actual user behaviour. The decisive advantage: not everyone sees the same advert, but each household only receives the offers that match their interests[1][4].
Data sources and personalisation
The technology behind targeted advertising can be implemented via smart TVs, streaming boxes or digital platforms. For example, a manufacturer of baby products can target its adverts at young families, while a fitness studio can address people who regularly exercise. Car dealers also benefit because they can target their adverts at households with a suitable income or interest in new cars.
Data is the be-all and end-all here: the better and more up-to-date the data, the more precisely targeted advertising can be designed. Various targeting options are available, such as socio-demographic, interest-based, regional or reminder-based[4].
Examples from practice
A travel company wants to target families travelling to the south in spring. It uses data from its own CRM for its campaign, combines this with geographical information and only advertises to families where families with children actually live.
A furniture retailer uses search terms and website visits to identify who is currently looking to furnish a new home. The TV adverts are aimed specifically at this target group - and remain invisible to all other households.
An outdoor outfitter wants to target customers who often look up hiking trails in search engines even more specifically. Using a combination of online data and TV announcements, these potential customers can also be specifically addressed on the screen.
Advantages of targeted advertising compared to conventional TV advertising
Targeted advertising differs fundamentally from traditional television advertising because it focuses on precision rather than dispersion. Advertising contacts are distributed specifically to those who are most likely to be receptive to the offer. This reduces wastage, increases relevance and improves the measurability of the campaigns[1][4].
Companies report that they achieve their marketing goals faster and more cost-effectively with targeted advertising. The advertising impact is higher because the messages are more relevant to the target group. In addition, the success of each campaign can be measured and further optimised using specific KPIs.
In practice, it looks like this: A regional food retailer can place targeted adverts in its region without households outside this region seeing the adverts. An online shop for exclusive fashion can only advertise to high-income households because it knows that this target group buys more frequently.
Best practice at a customer (name hidden due to NDA contract)
BEST PRACTICE with one customer (name hidden due to NDA contract) A renowned car manufacturer wanted to advertise the launch of a new city car specifically to young, urban households. The partner network was used to identify households that were already interested in sustainable mobility and lived in large cities. The TV adverts were placed exclusively for this target group, supplemented by suitable online adverts on the target group's smartphones. The campaign led to a significant increase in showroom visitors and a much higher conversion rate compared to traditional TV adverts.
Opportunities and limits of targeted advertising
Targeted advertising offers enormous opportunities, but also brings challenges. Data must be up-to-date, reliable and compliant with data protection regulations. The more precise the targeting, the smaller the target group - and therefore often also the reach. Too narrow a focus can lead to potential customers being left out because they do not match the supposedly appropriate data profiles.
It is therefore important to have a balanced strategy that combines a targeted approach with broader branding measures. After all, a brand's image also benefits when more people hear about it - even if they are not always the perfect target group.
How targeting works in everyday life
A supermarket wants to attract new customers and uses Payback data to identify those who have not yet visited the store. The TV adverts show special welcome offers - but only in households that are not yet regular customers.
A telecommunications provider recognises which households have had the same contract for a long time and offers them tailor-made upgrade offers via targeted TV advertising.
A drugstore chain wants to advertise a new skincare range and is targeting women between 30 and 50 who have bought anti-ageing products in the last year - this target group receives the advert, everyone else does not.
iROI coaching as support for targeted advertising projects
Many companies recognise the potential of targeted advertising, but are faced with the question of how to make the most of it. This is where iROI coaching comes in: We work with you to analyse your target group, your data sources and your marketing goals. We help you to identify and implement sensible targeting options. In doing so, we make sure that your advertising measures are not only precisely targeted, but also measurable and scalable.
iROI-Coaching accompanies you from the initial idea through to campaign evaluation. We give you ideas on how to captivate your target group with targeted advertising and address them sustainably. Our experience shows that a data-based, target group-specific approach increases the advertising impact and makes your investments more efficient.
What you can implement immediately
Start with a clear target group analysis: who are your ideal customers, what interests do they have and where are they active online and offline? Use existing data from CRM, website analyses or external data sources to define your target group.
Create different target group scenarios and test different advertising messages in a targeted manner. Combine classic TV advertising with targeted advertising to reduce wastage and increase relevance.
Success remains measurable thanks to ongoing tracking and customisation of measures. Rely on regular evaluations and optimisations to continuously improve your campaigns.
My analysis
Targeted advertising marks a milestone in the history of television advertising because it replaces the broad, one-size-fits-all programme with a targeted, personalised approach[1][4]. Companies that rely on these methods report measurable successes and greater efficiency in their campaigns. The technology is mature, the data sources are becoming ever more extensive and the possibilities for personalisation are constantly growing.
However, targeted advertising depends on the quality of the data and a clear target group strategy. If you don't work properly here, you not only risk wastage, but also a loss of customer satisfaction. Targeted advertising works best when it is genuine, relevant and appreciative.
iROI-Coaching supports you in realising this potential and taking your advertising to a new level. The future of TV advertising belongs to those who know their target groups and address them specifically - with targeted advertising as the key to success.
Further links from the text above:
Targeted advertising: How addressable TV is revolutionising your marketing [1]
ATV | Addressable TV explained simply & quickly [4]
Targeted advertising - Wikipedia [2]
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