AT&T Wants Addressable TV to Be the New ‘It’ Marketing Strategy
Looking at what AT&T is investing in addressable TV, it looks as though the telecommunications giant thinks the data-driven marketing world is ready for this tactic. But it’s going to take billions of dollars and years of work to get there. And so far, it’s been a decade of work for companies that already thought addressable TV would be the new “it” marketing technique. Is this really what marketers want from TV advertising?
In yesterday’s Ad Age article by Jeanine Poggi that profiles Brian Lesser, CEO of AT&T's advertising and analytics unit, the focus is on creating relevant TV advertising that marketers want. She writes of Lesser:
“His goal is to connect traditional TV, addressable TV, over-the-top streaming TV services and digital video inventory into a marketplace that's data-driven. He also wants to forge a way for advertisers to gauge ads' results on a variety of goals.
“For viewers, Lesser says all this will not only let networks show half as many commercials, but sell new formats that are less intrusive in the first place.
“Picture watching broadcast TV on your standard set at home, but confronting no commercial breaks at all. Instead, AT&T connects your viewing patterns with your mobile phone data and other information about you to discern that you're in the market for a new car, for example. It then inserts an icon for an auto brand on the screen and offers to send you a fuller pitch on your phone.”
The Ad Age article says this level of targeting is possible because AT&T recently merged with Time Warner and, as a result has ample mobile and TV data about consumers that marketers want. Plus, AT&T acquired adtech firm AppNexus.
But is addressable TV what marketers really want? Possibly not.
Poggi posits the same theory:
In the end, the biggest question may be whether enough advertisers will pay up for targeting. Many marketers still value broad reach more than exacting aim. A toothpaste marketer, for example, doesn't want precision as much as a motorcycle insurance brand.
"The vast majority of advertisers who use TV effectively need to reach everyone," says Brian Wieser, senior analyst at Pivotal Research Group. "Many of the promises or perceived opportunities of advanced TV presuppose large advertisers actually want targeting the way it is done on the web. If you want that, you can use the web."
What do you think, marketers?
Please respond in the comments section below.
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