Using addressable ads, marketers can predetermine the type of
consumer who will see their commercials. In this case, Allstate is
taking consumer data widely available from firms such as Experian,
Epsilon and Axicom, along with subscriber information from Dish and
DirecTV, and using
all this to pinpoint renters. In other words, if the subscriber is
a homeowner, the commercial is not supposed to appear on the TV
screen. By using both DirecTV and Dish, Allstate's new-technology
commercials will reach about 15 million households.
The campaign is a twist on advertisers' previous efforts in this
arena.
"It's an exciting moment in history," said Tracey Scheppach,
exec VP-innovations at Publicis Groupe 's SMGX, which helped
Allstate place the advertising and navigate the talks with both
media outlets. "This is the first time we've been able to go live
on two platforms at once with the same campaign." The commercials
appear during an allotment of ad time controlled directly by Dish
or DirecTV. Viewers who don't qualify for the ads typically see
direct-response pitches.
Running an addressable ad across more than one video provider is
somewhat of a coup. While addressable TV technology has been around
for years, efforts to get marketers to use it have moved more
slowly than the flow of Heinz ketchup in one of that company's
famous "Anticipation" spots.
That's because the technology involved in running the ads and
monitoring their performance can vary by multichannel provider,
making it difficult to deliver an addressable ad across multiple
providers, from Comcast to Dish or DirecTV, and end up with a
targeted national campaign at a reasonable price.
But the technology is of great interest to marketers of all
stripes who would prefer that their ads be more relevant to the
legions of TV viewers. "The message will resonate if there's a
product that speaks to you," said Nancy Ryan, media director for
Allstate. "I'd rather it not fall on deaf ears" with some part of
the audience responding, "I'm not a renter. Why should I care about
that ?"
In theory, the existence of addressable advertising should help
the TV business. Some believe that because addressable ads target a
specific type of consumer -- and theoretically are of greater
interest to those who see them -- the networks could charge a
premium for them. Ms. Scheppach, for one, thinks advertisers using
direct mail, which allows for targeting specific consumers by
address and other variables, might transfer funds from that purpose
to TV spots if addressable advertising became more widely
available.
"This is a new opportunity for TV to grow the pot of money," she
said, envisioning a day when retailers who rely heavily on catalogs
and mailers will instead test their hand at addressable
advertising.
But it's been slow going, despite some research suggesting
future opportunities. In 2010, Comcast and two
clients of Starcom MediaVest Group conducted a test in Baltimore in
which different ads were sent to specific groups of households,
based on demographic data and an advertiser's desired audience. The
parties determined that viewers who see advertising directed at a
specific set of households were 32% less likely to change channels
during the ad break.
"I can see more deployment coming. This type of ad is going to
come to scale," said Ms. Scheppach, who acknowledges that reaching
the larger part of the estimated 114 million households with TV
services subscriptions could take several years. "It's a matter of
how long does it take."
