Sky Media this week announced the results of the most comprehensive research into the UK addressable TV market ever, AdSmart: 5 Years and Forward.
“We’ve seen from day-one the amazing impact AdSmart has had for advertisers and it’s great to share our learnings of the AdSmart journey so far. TV is well-known for its impressive brand building abilities. Now with clear evidence of the effective performance of highly targeted campaigns across TV, its full potential is being discovered and unleashed by broadcasters, viewers and brands.” – Jamie West, Director of Strategy and Capability Planning, Sky Media
With the competition for advertising spend more and more competitive, addressable TV gives brands the ability to match the targeting found online but, in an engaging, brand safe and transparent environment.
To understand the impact of addressable TV on both consumer viewing and ad engagement, Sky Media partnered with BVA BDRC, Differentology and Affectiva to measure the impact of addressable TV campaigns using AdSmart. The extensive study included ground-breaking facial coding and emotional analytics. Findings are based on more than 130 campaign effectiveness projects, in which 300,000 Sky subscribers were interviewed.
The research noted that facial recognition analysis revealed that when addressable ads are on TV, viewers’ attentiveness to the screen can be as much as a third higher (35%) and on average 21% more engaged.
An analysis using 52,000 ad breaks showed that channel switching was halved (reducing by 48%) when addressable ads were in the first three positions of a break, compared to standard linear TV ads. Viewers of addressable TV ads are 10% more likely to spontaneously recall an ad compared to linear TV advertising while combining linear with addressable TV advertising increases ad awareness by nearly a quarter (22%). When the frequency of addressable ads is equal to or higher than linear exposure, ad recall is boosted by half (49%).
Higher engagement and relevance have clear business results, increasing purchase intent by 7% overall and by as much as 20% for new to TV advertisers who benefit more from the exposure and credibility TV delivers. Local brands like Gasway and Richardson’s Garden Centre have seen significant business growth (35% and 17% uplift respectively). They are among the rapidly growing group of businesses seeing huge business development through the use of addressable TV advertising.
The addressable TV market has grown substantially since AdSmart was first launched in 2014. Sky Media has launched more than 17,000 addressable TV campaigns for 1,800 brands. AdSmart has been successfully used by household names like British Airways Holidays, Barclays and Mr Porter to smaller or more niche businesses like Zap, a garage door provider, Tapi Carpets and McLaren sports cars. Tapi Carpets generated more than 7000 orders netting 3.4 million in revenue directly attributed to its AdSmart campaign.
In fact, now 1,000 businesses new to TV have launched advertising campaigns on the medium, indicating how addressable TV is opening up the TV market to brands of all sizes. With an impressive return rate of 70%, and 75 of the top 100 UK brands using AdSmart, it shows how the advanced TV targeting proposition is working for marketers and becoming the mainstream in the media mix.
The expansion of AdSmart into Virgin Media homes (from July 1st) is a huge step for the proposition. It means that 40% homes will be addressable giving brands the ability to reach 30 million individuals with relevant messaging in the brand safe and effective medium of TV.
“And why wouldn’t it work? It makes perfect sense – if an ad is more relevant to you, then you are more likely to remember it and that translates in greater impact. Marrying the expectations of digital targeting with the brand safe and transparent environment of TV is winning trust of brands, both new to TV and those that are well established.” – Jamie West, Director of Strategy and Capability Planning, Sky Media