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What is Advanced TV?
And what are the differences between Connected TV, Addressable TV and Programmatic Linear TV?
By Eric Thompson

August 28, 2018

5 min read
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What Advanced TV Is

Advanced TV combines the power of traditional TV advertising with the programmatic possibilities of the digital age.

The definition of Advanced TV is broad, but can be condensed as:

Television content that is not delivered through traditional models (i.e. broadcast as well as linear satellite and cable).

Thanks to Advanced TV, television content is being consumed in more ways, on more devices and in more places than ever before. TV ads in this ecosystem are more accessible, measurable, personalized and impactful.

Consider Advanced TV as a “channel” similar to display, social and video. Under the Advanced TV umbrella, media teams have access to three different platforms: Programmatic Linear TV, Addressable TV and Connected TV.

 

Why Advanced TV Is Important*

22.2 million US adults became cord-cutters in 2017. This figure is up 33.2% over 2016.

2/3 of TV consumption by Millenials and Gen Xs isn’t captured by traditional measurement platforms.

47% of adults 22 to 45 years old are not on traditional TV platforms.

 

Programmatic Linear TV

112MM+ Households*

Programmatic Linear TV is the most similar of all the Advanced TV platforms to traditional TV advertising. Basically, it’s programmatic ads run on live TV through linear methodology.

Think of Programmatic Linear TV as an old dog that has learned some very technical new tricks.

With Programmatic Linear TV, you buy content, dayparts, etc. It works like this: agencies run traditional TV ads through a DSP using advanced data sets. These data sets allow the agency to get granular with targeting and optimize as the campaign develops.

For viewers, there is no difference between Programmatic Linear TV ads and traditional TV ads. They run during any regularly scheduled program, such as daily news shows, sporting events, or sitcoms regardless of viewership.

Reporting for Programmatic Linear TV ads is based on traditional TV metrics such as daypart, network and GRP.

96.5% of US Homes Have Linear TV

Despite an increasing number of cord-cutters, linear TV still enjoys a sizable national audience that is accessible through Programmatic Linear TV.*

Why Consider Programmatic Linear TV?

  • Get the greatest reach and scale out of all Advanced TV platforms.
  • Enjoy national and local reach plus control over when and where ads air.
  • Optimize based on best performing dayparts, networks and programs.

Addressable TV

68MM+ Households*

Addressable TV provides the ability to show specific ads to unique households. So, the ad one household sees is different than the ad their neighbor sees during the same program.

Addressable TV uses the same inventory at Programmatic Linear TV, except you buy audiences (and audiences only), not content.

Think of Addressable TV as the “marksman” Advanced TV platform. Only the people you want to see your ad see it.

Usually this audience information comes from subscriber data. Only households that match the defined audience profile receive the ads. It’s also easy to blacklist certain channels you don’t want your ads to show up on.

A few specific Addressable TV considerations:

  • Make sure that the target audience is at least 15% of the available households you’re trying to reach.
  • The smaller the campaign, the higher the CPM.

>50% of US Households Can Be Targeted

Over half of US households have cable or satellite boxes capable of delivering targeted ads.*

Why Consider Addressable TV?

  • Match first- and third-party data to cable/satellite subscribers at a significant scale.
  • Reduce waste by targeting specific audiences in-market for your product, not blanket age/gender demos.
  • Access true audience-based buying with premier network providers.

Connected TV

51MM+ users*

Connected TV (CTV) is the most programmatic and measurable Advanced TV platform. CTV streams programming to a television using an internet connection. It’s usually through a Smart TV or over-the-top (OTT) device (i.e. Roku, Apple TV, and gaming consoles).

Think of Connected TV as the most “advanced” Advanced TV platform.

Reporting with CTV ads includes standard conversion tracking as well as cross-screen, cross-device measurement with fully integrated retargeting capabilities.

To make things complicated, CTV is technically an umbrella term within the Advanced TV umbrella. There is grey area as far as how Full Episode Players (like Hulu) fit within CTV because audiences can watch their content on computers and mobile devices.

98% Completion Rate

CTV viewers complete 98% of ads served.*

Why Consider CTV?

  • Reach the growing number of cord-cutters who don’t have a traditional TV service.
  • Maintain relevance with a specific audience across all of their devices for a sequential, more consistent brand story.
  • Gain access to consistent CTV reporting that mirrors digital reporting.

Read LumenAd’s CTV Case Study >

 

 

Advanced TV Pricing Structure

Advanced TV is sold on an impression basis. Its detailed audience data creates value for both the brand and programming.

Gross Rating Point (GRP), which is an estimate of audience reach based on age and gender demographics, has been the gold standard of TV measurement. Modern digital advertisers need more than just GRP because (thanks to Advanced TV) the volume of potential audiences is always shifting. Because of this, it makes more sense to measure and track impressions.

 

If you have any questions about LumenAd’s Advanced TV capabilities, give us a shout.

 

Sources:

*comScore & Nielson

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