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Addressable Advertising: What It Is & Why You Need It

Jan 23, 2023 | Blog

For all the different changes the digital marketing landscape has seen in recent years, one thing seems to unite the forward momentum. Pushing expansion and increasing revenue both factor in, but the driving force of recent advancements in tech and strategy is a need to refine, refine, refine

Gone are the days of high ad spend for maximum reach. The average American already sees roughly 10,000 advertisements every single day, making it easier than ever to get washed away in the oversaturated market. Pushing targeting to be evermore precise is key to limiting ad budget waste and reaching the right audiences.

At the forefront of this refinement process is addressable advertising

Here is everything you need to know about this nascent marketing strategy that can hone your brand awareness efforts and take your digital advertising to the next level in the new year.  

What is addressable advertising? 

Addressability, as a marketing term, is all about deepening the relationship between businesses and consumers. It identifies shoppers as individuals and gives contemporary marketers insight into how, where, why, and when they make purchases. Addressability allows companies to customize their communications and tailor advertisements to meet the lifestyle needs of their refined audiences. 

How does this translate to everyday experiences for businesses and consumers? The short answer is that individuals see more relevant ads and less stuff they don’t care about, while businesses and marketing specialists save on ad spend by targeting only the people who will love their offerings. 

Addressable marketing appears in a variety of digital channels and on just about every device. Primed to take the lead with this newly developed marketing strategy is, believe it or not, TV-based advertising and commercials. 

Addressable TV advertising 

Prior to the creation of addressable advertising, the reach of television ads was broad, varied, and came with little to no user demographics. There are 122.4 million television owners in America alone but not all of them drive and purchase new vehicles, for example. So how could car manufacturers reach only the people who do? 

Addressable advertising brings the kind of knowledge and customization digital marketing specialists have grown to expect from social media and programmatic advertising. These addressable ads pinpoint TV watchers on all devices as unique individuals, and allow viewers to receive different ads while watching the same program. 

Households can then be segmented into specific audiences based on their interests and habits, from fitness buffs and coffee drinkers to DIY-ers and the fashion-forward. 

How does addressable marketing work? 

User data is the reigning queen alongside marketing’s king, content. Without it, the only way for a digital marketing consultant to personalize communications and share relevant information with consumers directly is through snail mail and email. 

Now, by gathering PII across devices, the custom-tailored conversations between companies and their audiences can continue on virtually any platform. PII is short for personally identifiable information — it’s the public and private data that distinguishes you from other online users, like your name, address, phone number, and login details.

Typically coming from a CRM, or customer relations management software, advanced digital marketers then use this data to test ads, make personalized offerings, and reach shoppers at every stage of the purchasing journey. While similar to geofencing — a modern strategy that involves using geographical boundaries to reach specific consumers — addressable advertising takes the made-to-order ad up a notch. 

ReadGeofencing: What It Is and How to Use It

Benefits of addressable advertising

As opposed to non-addressable advertisements, which are undefined and difficult to track like an ad in the newspaper, addressable advertising allows for ultra precise audience segmentation. Marketers then spend more time communicating with addressable audiences that have measurable engagement data for further refinement of ad campaigns. 

Addressable audiences: a group of individuals that meet certain lifestyle criteria or purchasing habits, making them optimal candidates to receive an ad. 

This cutting-edge technology is about more than just being equipped with a meticulously defined audience, though. Just a few of the benefits of addressable advertising, in its current stage, are as follows: 

  • Only delivers ads to ideal candidates, limiting wasted ad spend. 
  • Refines consumer insights, giving marketers more information about their audiences. 
  • Shoppers see ads about things they actually want and need, creating a better customer experience and cultivating brand loyalty
  • Builds direct, long-term relationships between companies and consumers through personalized communication. 
  • Can lead to higher conversion rates when implemented by an experienced marketing professional
  • Delivers accurate and detailed engagement and conversion metrics so companies can see what is working and what isn’t. 
  • Reaches shoppers at every stage of the buying process. 

Addressable advertising is top of mind for 67% of marketers, a recent survey shows. Though the tech and strategy of addressable advertising are still in early stages, rising demand for precision targeting will likely lead to rapid advancements. 

Start-ups and established chains alike can maximize their advertising efforts by incorporating addressability, and should start as soon as possible. The digital marketing world moves fast, to say the least, and consumers will grow accustomed to only seeing consistently relevant ads just as quickly.  

Set up 2023 to be the year your business scales up, drives revenue, and makes an impact with addressable advertising — the award-winning team of digital marketing experts at Sinuate Media are just a contact form away.

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