Three Reasons to Start Experimenting With Advanced TV

September 20, 2016
by James Shears – GM of Advanced TV

It’s no secret that today’s consumers are taking advantage of new technologies to watch their favorite television shows on their own schedules. Just recently, Hulu announced it now has more than 12 million subscribers, and a report from TiVo’s Digitalsmiths unit found that 30% of consumers have apps from networks like ESPN, ABC and CNN downloaded to their mobile devices.

And yet, despite these growing audiences, many advertisers have shied away from advanced TV because it cannot yet deliver the scale offered by linear television. Nonetheless, Advanced TV offers several advantages of its own, and marketers can benefit greatly from giving it a try.

Here are three reasons to start experimenting with Advanced TV today:

Advanced TV gives brands the targeting and measurement tools they can’t find on linear television.

On traditional television, household-level targeting is still in its infancy, with so-called “addressable” inventory limited to the two minutes of ad time cable providers have each hour. Even then, advertisers can only reach homes that have certain cable boxes. These homes and boxes represent roughly 30% of the linear TV household universe.

Most of the time, brands advertising on linear television are buying traditional TV and not addressable.  Without that household precision, they are merely hoping to reach enough of the right consumers to justify their investment, taking it as a given that they will spend money to reach a number of people who will never even consider buying their products.

By purchasing Advanced TV impressions, advertisers can increase their efficiency by honing in on consumers at the user level and reaching precise audience segments across numerous digital video platforms. This omnichannel approach allows the brand to control their message across screens.

Advanced TV is an incredible bargain.

One way to think about cost of media is to look at the effective rate paid.  That is to say, what is the actual CPM spent to hit the desired audience if you exclude the “wasted” impressions which hit the audience outside of the intended target.

By applying this effective CPM analysis, Advanced TV offers advertisers access to the same premium video content that airs on television at a fraction of the cost. Indeed, even though marketers get the targeting and measurement benefits we mentioned above, Advanced TV CPMs are still well below the effective rate of linear TV.

Though the scale is still developing in these channels, brands looking to reach a small, targeted audience can do so at a discount.

Advanced TV helps marketers prepare for the next generation of video content.

The lines between digital video and television are growing blurrier with each passing year, as more and more television content becomes available for viewing on a multitude of digital channels. Meanwhile, the growth of programmatic TV technology is increasingly making it possible for advertisers to reach precise audiences across the many places they watch video. One day soon, there will be little distinction between a “television” viewer watching “The Walking Dead” on linear TV and a “digital video” viewer watching the same program via an app on a connected television.

As the digital video convergence continues to play out, marketers can get ahead of the curve by using Advanced TV to develop best practices for targeting their most likely customers with effective omnichannel campaigns. Or, more succinctly, Advanced TV is the future of video advertising, and now is the time to get comfortable using it.

For more information on Advanced TV, download our whitepaper Programmatic: The Future of Television.

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