Have you ever been watching a show while talking to a friend and noted that you both got different advertisements despite watching the same program? This isn’t actually unusual since it is a concept called addressable advertising. Companies are making use of this concept more and more to ensure that ads are getting to households that they have reason to believe would be interested in the ads that they’re showing. Why is addressable advertising such an important concept, though?
Big Data and Advertising
Big data and advertising play a role in addressable advertising as you might expect. Now that companies have more data than ever on households, they’re able to tell what types of things a particular household might be interested in. They can use that demographical data along with other data that they might have to send you relevant ads. You’re going to notice addressable advertising start to become more prevalent in the years to come.
It Makes Advertisements More Effective
Simply put, addressable advertising makes the ads much more effective than usual. Sending ads out to houses watching shows without knowing much about people is like just hoping that interested parties happen to see your ad. This method of advertising gets the ads to the houses that are definitely in the right demographic to be interested in specific ads. This makes it so that companies can more effectively spend their advertising dollars.
You Should See Fewer Ads That Are Irrelevant to You
One big benefit of addressable advertising is that you should see fewer ads that are irrelevant to you. Companies have the ability to target specific chunks of people now based on data that they have received. This helps them to target you with advertisements about products, services, or other things that might be interesting to you. If you don’t care about ads much, then this might not matter to you at all, but it is significant.
The future of advertising is going to be much more personalized in nature. Addressable advertising is sort of television’s answer to how targeted ads can be online. Online advertisements show you things based on an algorithm that shows what types of things you’re interested in. This is not too different from that when you think about it from the right perspective.