The future of TV as we know it: addressable and connected TV

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The future of TV as we know it

As technology keeps updating and advancing, the new ‘norm’ is also changing. With TV networks and ad buyers developing the foundation for targeted ads to become more common on traditional TV, it might be a good idea to have a deeper understanding of what’s happening. Keep reading to find out more about addressable and connected TV and what it means for the future of TV as we know it.

What is addressable and connected TV?

Addressable TV allows advertisers to target ads to specific households during regular TV programmes. Because households are segmented according to demographics, geography etc. it’s relatively easy for them to be shown relevant ads whilst watching TV.

This form of advertising is increasing in popularity because the data is monitored in real time which allows advertisers to adapt their campaigns according to results, meaning they can extend their reach to relevant audiences to a greater extent than has previously been possible.

Connected TV on the other hand can be supported by any device that allows users to connect streaming from the internet like Xbox, Smart Tv and PlayStation, for example. Because traditional TV doesn’t support internet connection, it’s unable to broadcast digital adverts like newer smart TVs are able to. In contrast to addressable TV, connected TV is simply a technology that supports addressable TV advertising.

Why is addressable and connected TV the future? 

There are multiple benefits of using addressable and connected TV when compared with traditional TV.

Firstly, it increases advertisers’ reach. In a recent partnership between Finecast and Audience Project comparing the reach across linear and non-linear platforms, research found that linear TV reached 70% of audiences, with broadcast VOD reaching an additional 6.4% for 16-34s. This clearly showcases how new advertising methods are increasing the reach of advertisers.

Secondly, addressable and connected TV is accessible to everybody no matter how experienced with technology they may be – or not. Smaller or more niche brands often miss out on opportunities due to lack of funding or lack of experience. With addressable and connected TV it’s relatively easy for all types of brands to get involved in ways they may not have considered before. With 50% of UK households watching via some form of connected TV set-up, even the smallest of brands have a chance to adopt this form of advertising.

In terms of budget, brands could be saving huge amounts by switching to addressable and connected TV. When consumers watch an ad on a smart TV for example, they’re likely to be watching with their family or friends so the ad will be seen by several other people at the same time, reducing the cost per impression for the advertiser.

Final thoughts

Overall, it is clear that addressable and connected TV are the future of TV as we know it. Using the internet as a platform of making content available for people across the globe has long been the norm within society. As times are changing and advertisers realise the benefits that come with advertising using the internet, traditional TV is likely to lose some of its relevance.