Addressable TV is poised for huge growth in 2017. Beet TV notes there are now about 45 million homes in the U.S. able to get addressable TV. Speaking at the Beet Retreat 2016, Jamie Power, managing partner at Modi Media, explained why addressable data is valuable for campaign optimization.
“Over the last couple of days, everyone talked about auto and CPG, and addressable is not just auto, CPG, and finance,” Power said. “There are other categories that we broke, categories like theatrical that we thought we’d never find a way to tie it back to an actual getting-a-butt-in-a-seat, and we’ve done that by using different data sets.
“There’s a reason why $80 billion is spent in television, and that’s because television works. Now, with addressable television, we finally have the data to show clients what works and actually what doesn’t work. So after a campaign we’re able to show a client what worked, what didn’t work, how many cars were sold, and then optimize in future campaigns.”
Prior to this, video advertisers knew when campaigns took off, but were often in the dark about why some spots failed to connect. The level of data with addressable TV makes failures just as instructive as successes.
“The value that’s brought is not only when a campaign works, but it’s also when a campaign doesn’t work,” Power said. “At the end of the campaign, if the campaign doesn’t work I know why the campaign didn’t work. I know the point at which the frequency reaches the diminishing return. I know if the advertiser overpaid, and we’re able to use that data to fix a campaign.
“We have case studies across every single category. The retention rate is 85 percent, but there are a lot of times that it doesn’t work and we’re able to use that data—and it’s really powerful—to bring the advertiser back and do it bigger and better next time.”
For more on iterating with addressable advertising, watch the full interview below (used with permission).