By Charlie Horrell, CEO of Packet Vision. The Packet Vision service supports local, targeted and interactive IPTV advertising that can be tailored to match the demographics of individual households.
For marketers, the most exciting advantage of IPTV (television delivered to a standard TV set over a telephone line) over more traditional forms of TV distribution such as satellite or cable is the potential for addressable television advertising.
Because delivery across an IPTV network allows for the recognition of individual households in much the same way as websites and search engines recognise individual PCs, the traditional “spray and pray” television advertising gives way to campaigns targeted at a specific audience.
Marketers will be able to apply a fine degree of segmentation to address television audiences –geographically, demographically and even by communities of interest and behaviour patterns.
So households with children could be targeted with family-orientated products. And a campaign for a financial product could be addressed only to those households with earning levels appropriate for such a product.
Alternatively, a nationwide ad for a sports car might be broadcast only to those households with single males in their mid-thirties or the car manufacturer might want to localise the ad to include contact information for the viewer’s local dealership.
This ability to define an audience so precisely will also make television advertising a more cost-effective solution for local or niche businesses where previously it was not. So using the same example a local car dealer could even run its own campaign targeted at households within a specific distance from the showroom.
The ability for a car dealer to be able to afford TV advertising is a totally new phenomenon that will open up the possibility of TV advertising to a greater potential client base
The degree of granularity available within IPTV delivery systems will allow households to be addressed individually as well. Advertisers will have the option to create bespoke ads with several creative executions, slice television audiences into specific demographics, and then send each execution to the relevant audience.
For instance, a younger audience might be sent an ad showing a car travelling through town to a nightclub, while an older audience might be sent a version of the ad in which the car tours the countryside.
Both ads could play to their respective audiences simultaneously, and each audience need only ever see the version of the ad created specifically for their demographic.
So advertising across IPTV networks allows for greater audience relevance, or to put it another way: waste is greatly reduced,.
Increased relevance is complimented by increased accountability. Audience data becomes real rather than statistical, making TV advertising more transparent in terms of measuring return on investment. And this isn’t just an ornamental feature, because increased accountability is complimented by increased control.
Advertisers will be able to track how often an ad has been viewed by individual households, allowing for capping on campaigns so as to prevent audience alienation through over-exposure.
Episodic ads may be screened in sequence to households: staggered to fit with actual viewing habits, rather than forced to fit into inflexible media schedules.
When you throw the possibility of interactivity into the mix it’s not difficult to see how IPTV technology might be used to talk more effectively WITH television audiences, rather than AT them – a distinction which informs the basic premise of every successful ad campaign.
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