Greg Pulier, CEO of Interactive Video Technologies wrote a great little post on Mediapost  Mediapost a couple of weeks ago that I thought was great for everyone to understand.  It’s taken me a while to get back around to commenting on this – I read this back on July 3rd so it’s a little old hat.

The basic gist of the article is how TV operators, while quiet, aren’t sitting with their heads in their hands bemoaning the revenue bleed into online without doing something about it:

Some of the most well-known cable operators and telephone companies have been modifying their networks in ways that could give them the capability to deliver TV content, including advertising, to very small groups of users within a larger demographic region, or small groups of users with common interests within a market or system.

Did you really expect them to do nothing while some new kids on the block (Internet, Online Video Ads, etc) chipped away at their revenue base?

Yes, the market is changing, fragmentation exists and one-size-fits-all doesn’t suit the new advertising ecosystems that are forming.  Brands need new niches and targeted focuses to speak efficiently and effectively to their target audiences.  To date, as Greg points out, it’s just been too bloody expensive and not enough demand to invest in technology or time to figure out how to micro-target on TV

At the same time, TV Networks are simply made up of many smaller “nets” that CAN be controlled by the local cable operator to address the concerns and needs of the Brands.

I’m going to steal this term to umbrella term all of my rants from here on in: Addressable Advertising – Definition: the phenomenon of delivering promotions to small groups of individuals

The Internet and Digital Signage are both healthy forms of Addressable Advertising, with Digital Signage taking the cake on how far you can go with it because we can control not only the ad but the environment/relevancy (C-Stores, retail, health clubs, Gas Stations, etc) as well.  Our viewers aren’t stuck in front of a computer.

 Some of the points to pull from the article on the benefits of addressable advertising:

  • offering advertisers the ability to tailor TV commercials to small groups of viewers with similar interests
  • cost-per-impression for addressable promotions might be higher, smaller audiences mean many addressable ad campaigns can be more affordable than national campaigns
  • Smaller advertisers can afford to reach an audience of hundreds or thousands on TV, if not an audience of millions
  • The premium paid for an addressable ad is justified by the increased likelihood of reaching an audience that is interested in the product or service
  • The ability to tailor ads can allow even small businesses such as local retailers, or sellers of specialized, low-volume goods such as tractors, yachts or private jets to find relevant audiences on television

My my…I think Mr. Greg basically just outlined the sales pitch for Digital Signage AND helped justify the switch!

Why is this relevant to the folks out there selling Digital Signage Advertising?  Well, it’s not like TV will be sold as Addressable Advertising anytime soon (except for SpotRunner, which I’ve covered in the past) but make no mistake, TV land is a big place and it doesn’t like to be messed with.  Once they get this all figured out they’re likely to come head on at Internet, Mobile and Digital Signage to take back the share that they feel they rightly deserve.