Addressable media is a form of advertising that lets brands connect with individual consumers across various online platforms, social media, over-the-top (OTT) content providers, and even smart TV platforms.

Using addressable media requires a detailed consumer database that contains the customers’ personal information categorized by demographic, consumption behavior, and purchase history. In a sense, it helps advertisers serve personalized content and offers to consumers to enhance campaigns and earn more significant revenue.

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Like any other advertising tactic, buyers think of addressable media in different ways. Some appreciate that their favorite brands inform them of sales or new products they may be interested in. Others, meanwhile, feel that companies are overstepping their bounds and could be invading their privacy.

Some companies now provide applications that help advertisers launch addressable media campaigns quickly. The video below shows one example.

Benefits of Addressable Media

Addressable media is gaining traction because of benefits that include:

Gaining Unique Insights about Each Customer

Just because two customers can like the same company, that doesn’t mean they want the same products it offers. Two people can like Apple, for example, but one of them may still prefer a Windows computer over a Mac even if he or she loves iPads.

Addressable media campaigns can help you zoom in on unique preferences. In the example above, you can push more iPad ads to the iPad lover but fewer Mac ads since that’s more likely to get you results—increased iPad sales.

Knowing How Often Users Want to See Ads

No one likes getting spammed, not even by their favorite brands. Addressable media can help advertisers determine just the right number of ads and how frequently to show them to each customer.

A person’s purchase history can give you clues about that. A look at how frequently our iPad lover above changes models can tell you when the right time to send him or her ads (say, for a new version). If he or she always gets the latest model, you can start sending him or her ads as soon as you know when your store will have it.

Stop Wasting Time on People Who Won’t Convert

Once you’ve identified uninterested users, it’s always best to stop bugging them since they’re not likely to change their minds. If they don’t respond to your ads, chances are they won’t buy what you’re selling.

Instead of wasting time and effort trying to convince them otherwise, you can focus instead on more interested parties who are more likely to patronize your products. Addressable media can help you zero in on people you’d gain more traction with.

The Shift from Programmatic to Addressable Media

People say the shotgun approach to advertising is dead, hence the transition from programmatic to addressable media campaigns.

Programmatic media or the shotgun approach where advertisers segment subscribers loosely by gender and age and hope for the best—that by seeing ads while watching TV will convince them to buy a specific product—doesn’t work.

As demonstrated earlier, it’s not easy to change anyone’s preferences, but marketers can track these more accurately. And that’s where addressable media proves helpful. Instead of wasting money on keeping expensive ads up on primetime slots, advertisers can instead focus on those who can turn into actual conversions by looking at their behaviors and purchase histories.

If we’re to use our gun metaphor, addressable media would be like adding a scope to your shotgun so you can aim better.

Advertisers who don’t want to flood consumers with irrelevant ads could probably benefit most from addressable media.