Adland might find it unpalatable that data is now king but even die-hard Madmen will now be forced to admit data-driven marketing is the future following a dossier of evidence which shows addressable TV not only works for broadcasters and viewers, it is highly effective for advertisers too.
So says one of the most comprehensive studies into the UK addressable TV market, based on more than 130 campaigns and interviews with 300,000 Sky subscribers.
Sky Media partnered with BVA BDRC, Differentology and Affectiva for the the study, AdSmart: 5 Years and Forward, which used facial coding and emotional analytics in an effort to understand the impact of addressable TV on both consumer viewing and ad engagement and to measure the impact of campaigns using its AdSmart system.
The study concluded that addressable TV cuts channel switching by half (48%); boosts ad engagement by more than a third (35%); and can increase purchase intent by as much as 20% for new to TV advertisers and by 7% overall.
Local brands like Gasway and Richardson’s Garden Centre have seen significant business growth (35% and 17% uplift respectively).
Sky Media has launched more than 17,000 addressable TV campaigns for 1,800 brands since the scheme was first launched in 2014, from major brands including British Airways Holidays, Barclays and Mr Porter to more niche businesses like garage door provider Zap and McLaren sports cars.
One SME, Tapi Carpets, generated more than 7,000 orders, netting £3.4m in revenue directly attributed to its AdSmart campaign.
In fact, over 1,000 businesses new to TV have launched ad campaigns on the medium. With a return rate of 70%, and 75 of the top 100 UK brands using AdSmart, Sky Media insists the study shows how advanced TV targeting is working for marketers and entering the mainstream media mix.
With the recent expansion of AdSmart into Virgin Media homes (from July 1), 40% homes will now be addressable, giving brands the ability to reach 30 million individuals.
Sky Media director of strategy and capability planning Jamie West said: “TV is well-known for its impressive brand building abilities. Now with clear evidence of the effective performance of highly targeted campaigns across TV, its full potential is being discovered and unleashed by broadcasters, viewers and brands.
“And why wouldn’t it work? It makes perfect sense – if an ad is more relevant to you, then you are more likely to remember it and that translates in greater impact. Marrying the expectations of digital targeting with the brand safe and transparent environment of TV is winning trust of brands, both new to TV and those that are well established.”
While there are no figures for UK addressable TV spend in the report, according to eMarketer, the US market is expected to rise from $760m (£627m) in 2016 to $3.37bn (£2.78bn) in 2020.
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