DRTV: Microtargeted TV
Addressable TV is more like direct mail. Although Monday Night Football might directionally hit the right demographics, where true addressable capabilities are enabled, each viewing household can be selected or deselected based on its individual properties. This makes for much more sophisticated targeting, more specific measurement opportunities and a more effective campaign.
What You'll Need
Unfortunately for the cable/satellite operators, it also makes for a more complex sales and ad serving process. What used to be a single buy for a single advertiser purchasing a 30-second spot in a program becomes one advertiser buying a spot that cherry-picks the upper income households watching that program and another advertiser purchasing the remaining households with an ad more aligned with their demography. Or a single advertiser might buy all households viewing a program, but version it so some households receive one spot featuring a higher-end product line while the remaining households receive a spot for an entry-level product.
The result is a campaign that is much more effective and efficient for the advertiser; but which, by definition, leads to significantly more complexity for the cable/satellite operator. This is a major dilemma facing the industry today that may not be solved until advertisers demand it and are willing to put their spend behind it.
Perhaps most importantly, addressable ad placement allows true addressable measurement. Marketers know which household received a particular ad, when it ran and how many times it was shown. They can also determine if that household made a purchase, even if that purchase was made via offline means, by using third-party data or doing a post-campaign CRM match to their own customer purchase database.
This level of quantifiable measurement allows much closer correlation of cause/effect, test and control options, and ROI-based campaign evaluation similar to other proven addressable marketing techniques.