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

Using addressable media requires a detailed consumer database that contains 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 their campaigns and earn more significant revenue.

Other interesting terms…

Read More about Addressable Media

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.

What Are the Benefits of Addressable Media?

Gaining Unique Insights about Each Customer

Just because two customers can like the same company 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/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/her ads (say, for a new version). If he/she always gets the latest model, you can start sending him/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.

Addressable Versus Nonaddressable Advertising, What’s the Difference?

Addressable and nonaddressable advertising are different approaches to reaching and targeting audiences in advertising in terms of targeting tactics, personalization, channels and media, and measurement and analytics.

Addressable advertising lets advertisers target specific individuals or households based on their demographics, behaviors, location, or individual preferences. It is highly personalized and aims to deliver tailored content to each viewer. It is typically used in digital channels like online display ads, social media, and email marketing.

Nonaddressable advertising, meanwhile, targets a broader audience and often relies on mass media channels like TV, radio, print, and outdoor advertising to reach a wide but less precisely defined audience. Advertisers may use more generalized messaging.

Given the differences above, addressable and nonaddressable advertisers also measure success differently. Addressable advertising allows for detailed measurement and analytics. Advertisers can track metrics like click-through rates, conversion rates, and returns on investment (RoIs) with precision. They can also use A/B testing and real-time optimization to refine their campaigns. Performance measurement in nonaddressable advertising, meanwhile, can be less precise. While there are ways to measure its impact, they often rely on larger sample sizes and broader demographic data.

What Is an Example of Addressable Advertising?

Let’s say you are a streaming service provider that wants to promote a new subscription package to potential customers based on their preferences and viewing habits. You have access to a database of user profiles and their viewing histories.

First, you need to collect data on user behaviors, such as the genres they watch, their favorite actors, and their viewing histories. Based on this data, you then segment your audience into different groups like action movie enthusiasts, comedy lovers, and sci-fi fans, among others. Using the information you gathered, you can create personalized ads for each segment like one showcasing your extensive collection of action movies and highlighting your latest action-packed releases for action movie enthusiasts. After that, you can use programmatic advertising technology to deliver tailored ads to individual viewers based on their segment. So, when users log in or interact with your streaming platform, they see ads aligned with their viewing preferences. You must then collect feedback and adjust your advertising strategies in real-time. Finally, you track key metrics, such as click-through rates, conversion rates, and subscriber sign-ups, for each advertising segment to assess your addressable advertising campaign’s success and make further improvements.

What Is an Addressable Audience?

An addressable audience refers to a specific and identifiable group of individuals or households that advertisers can reach and target with tailored messages. They are typically defined and selected based on various characteristics. The term “addressable” indicates that advertisers have the means to directly reach and engage with target audiences through various marketing channels.

Why the Shift from Programmatic to Addressable Media?

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.

Key Takeaways

  • Addressable media lets brands connect with individual consumers across various online platforms.
  • Using addressable media lets companies gain unique insights about each consumer, know how often users want to see ads, and stop wasting time on people who aren’t likely to convert.
  • It’s been said that the shotgun approach to advertising is dead, which gave rise to addressable media.