{"id":90390,"date":"2023-11-30T09:12:00","date_gmt":"2023-11-30T17:12:00","guid":{"rendered":"https:\/\/zetaglobal.com\/?post_type=insight&p=90390"},"modified":"2025-03-05T08:29:11","modified_gmt":"2025-03-05T16:29:11","slug":"how-media-companies-are-approaching-addressable-tv","status":"publish","type":"insight","link":"https:\/\/zetaglobal.com\/resource-center\/articles\/how-media-companies-are-approaching-addressable-tv\/","title":{"rendered":"How Media Companies Are Approaching Addressable TV"},"content":{"rendered":"\t\t
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September 27, 2023 | <\/span> < 1<\/span> min read<\/span><\/span><\/div>\n\t\t\t<\/div>\n\n\t\t\t

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Connected TV (CTV), addressable TV, over-the-top video (OTT)\u2014whatever you call it, people have changed how they consume media. And advertisers have followed suit.<\/p>

Sean Corcoran, US CEO of Mediahub, says TV is experiencing a seismic change. \u201cThere\u2019s a shift toward something different in the TV space. I think you\u2019re seeing the consumer drive the whole thing in that direction. Half of all viewership is streaming and YouTube is the biggest app there.\u201d<\/p>

This presents a huge opportunity to reach audiences in a different way.<\/p>

In this article, we\u2019ll explore the current state of addressable TV and how advertisers can position themselves ahead of the curve for this growing media channel.<\/p>

The Current State of CTV<\/h2>

CTV refers to the device that allows people to download, stream, or consume online media.<\/p>

Think: smart TVs, gaming consoles, Roku, Apple TV, Amazon Fire TV, etc. The \u201cconnected\u201d part speaks to a built-in internet capability.<\/p>

While many of these CTV devices have been around for many years, today\u2019s landscape is different due to:<\/p>

  1. The proliferation of OTT providers, or the streaming services that deliver content online, like Netflix, Hulu, Prime Video, Disney+, or Spotify. There are many ways to consume content these days.<\/li>
  2. The changing preferences of audiences. Younger audiences typically aren\u2019t watching episodic shows, or long-form video. The consumption behaviors of all generations have changed, and that impacts programming and advertising.<\/li>
  3. \u00a0The exploration into programmatic. All these platforms offer ad placement, but how\u2014and with how much success\u2014varies greatly. Things are evolving quickly.<\/li><\/ol>

    This all has led to what media companies call \u201caddressable TV,\u201d or simply, a type of television advertising based on CTV and OTT programming.<\/p>

    \u201cWith streamers coming in, I do think there\u2019s a real push forward,\u201d says Dave Penski, CEO of Publicis Media. \u201cThe ability to do audience-targeted television, or audience-targeted video at specific audiences, is prevalent on every plan. All of our clients are at least doing something in this category and seeing value from it.\u201d<\/p>

    The Opportunity of Addressable TV for Advertisers<\/h2>

    CTV is a user acquisition channel with incredible reach. Gone are the days of gathering around to watch primetime television shows. These days, CTV is essential to the modern home, with everybody consuming on different platforms and devices.<\/p>

    And it\u2019s a buyer\u2019s market.<\/p>

    Penski says this was the first year in a long time\u2014probably ten or more years\u2014where there\u2019s been more supply than demand. There was unsold inventory in linear. He says the value of CTV, or what he calls \u201cadvanced TV,\u201d is proving out.<\/p>

    Beyond just having greater reach and the early success of advertisers, Doug Rozen, former CEO of Dentsu, sees an opportunity to transform the customer experience. \u201cYou can align CTV with other touch-points in the customer experience, like direct mail lined up with video drops, email, display linked with all these activities. I think that\u2019s what\u2019s getting more interesting; it\u2019s a better customer experience versus a cookie-based experience,\u201d he says.<\/p>

    The Challenge for Advertisers<\/h2>

    One challenge for advertisers is choosing how to parcel out budget most effectively across the media mix. Andrew Meaden, Global Head of Investments at GroupM, expects to see a decline in linear, as it\u2019s getting older and less exciting for advertisers. But perhaps there\u2019s an opportunity for the advertisers who stay in linear to also lean into CTV.<\/p>

    Within CTV, you\u2019ll have to determine which platforms services to invest in. Not all service providers offer the same audience volume, CPMs, or expected outcomes.<\/p>

    Meaden expects historical CPMs in linear to rise due to less supply. Advertising companies will need to account for the increase in cost by explaining the benefits of higher quality impressions, greater engagement, and reduced clutter.\u00a0 \u201cIf you\u2019re looking at historical CPMs, it might look expensive in comparison and that\u2019s quite a big intellectual leap for some. Clients must go back and justify that, and no one wants to look like they\u2019re paying more,\u201d he adds.<\/p>

    There\u2019s also the challenge of measurement. \u201cAs video gets more addressable, you start to move away from panel-based measurement into more signal or more clear and better measurement opportunities. And I think that\u2019s what\u2019s putting a lot of heat on all the conversations around measurement,\u201d says Rozen.<\/p>

    And finally, with an upcoming election year, the lingering impact of COVID-19, and a possible recession, there\u2019s unknowns about how advertisers choose to spend budgets. Many expect bumpiness, but perhaps that means opportunity. \u201cIf you\u2019re a brand who can, lean in now. There\u2019s supply. There’s opportunity. Many brands are focused on performance and outcomes because of pressure. But I think brands can do an unbelievably efficient job of building brands right now\u2014better than any other time,\u201d says Rozen.<\/p>

    Role of AI<\/h2>

    AI may not be an obvious conversation in the CTV realm, but it\u2019s relevant to agency executives for two reasons: automation and creative development.<\/p>

    Most media companies have adopted AI in a fairly limited here to now, but with expectations of growing applications to help modernize and streamline operations and effectiveness.<\/p>

    \u201cWe need to look at getting much more automated, with linear media particularly. In the past, it\u2019s been too expensive to develop our own technology or software. But generative AI<\/a> makes it quite possible now,\u201d says Meaden.<\/p>

    Rozen adds that holding companies who work on behalf of clients could do a whole host more with AI.<\/p>

    The other AI discussion with CTV and addressable TV is in creative development. This is an exciting opportunity for creative teams and agencies to get back to developing innovative advertising campaigns, though the biggest challenge will be approvals, governance, and building an AI process.<\/p>

    Looking Long Term<\/h2>

    CTV has been a topic of conversation for a few years, but progression has been slow.<\/p>

    Penski urges media leaders to look longer term, \u201cIf we look at things year to year, you don\u2019t see as much improvement. If you look at the five-year period, it\u2019s a massive improvement \u2026 We\u2019ve made an incredible leap forward. The amount of inventory we have, that we\u2019re able to target in a more personalized way, is improving.\u201d<\/p>

    While there is still much to fine tune with addressable TV, media companies overwhelmingly consider it to be the future. Early advertising adopters will benefit from the buyer\u2019s market and being early to market.<\/p>

    To dive deeper into CTV, AI, and predictions for 2024 from Penski, Meaden, Corcoran, and Rozen, watch the panel, Media\u2019s Uncharted Path Ahead<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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    Want to see Zeta in action?<\/p><\/div><\/div>\n\t\t\t\t

    To implement these strategies effectively, brands need the right technology and tools to support their personalization efforts. The Zeta Marketing Platform empowers businesses to offer highly tailored experiences driven by AI.\n<\/div>\n\t\t\t\t
    \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tZeta Marketing Platform<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tRequest A Demo<\/button>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    Connected TV (CTV), addressable TV, over-the-top video (OTT)\u2014people have changed how they consume media. And advertisers have followed suit.<\/p>\n","protected":false},"author":16,"featured_media":90391,"menu_order":0,"template":"","tags":[119,1093,1094],"insight-category":[26],"class_list":["post-90390","insight","type-insight","status-publish","has-post-thumbnail","hentry","tag-customer-acquisition","tag-zeta-activation","tag-customer-growth","insight-category-articles","industry-media-and-entertainment","topic-programmatic-dsp"],"acf":[],"_translation_status_fr":null,"_translation_status_es":null,"_translation_status_en-gb":null,"_yoast_wpseo_primary_insight-category":"26","_yoast_wpseo_primary_category":null,"_wpml_media_has_media":null,"yoast_head":"\nHow Media Companies Are Approaching Addressable TV<\/title>\n<meta name=\"description\" content=\"Addressable TV on connected TV enables you to target users while they watch their programs. Learn how media companies are approaching this opportunity.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zetaglobal.com\/resource-center\/articles\/how-media-companies-are-approaching-addressable-tv\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Media Companies Are Approaching Addressable TV | Zeta Global\" \/>\n<meta property=\"og:description\" content=\"Addressable TV on connected TV enables you to target users while they watch their programs. 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