What is Addressable Advertising?
This article is a summarized extract from The Budgeteers' Guide to 21st Century TV.
Addressable advertising is a concept used by some advertisers to target households individually with advertising. These ads are delivered typically through cable or satellite company set-top-boxes.
Ads are selected for your household based on observations of your TV viewing habits, demographics like where you live, your credit history and other information that you gave when you signed up for the service.
This differs from the more traditional approach of placing ads within a particular TV program to target an audience based the general demographics of the audience that may be viewing that show. With the removal by The US Congress of planned privacy protections which would have restricted advertisers accessing the internet browsing and streaming histories from your internet service, expect addressable advertising to become much more widespread, and much more targeted.
With so much data, with so much information at our fingertips, we can sometimes forget that our social profile—our data points—are being mined, sometimes in the guise of providing “more relevant information.” This includes our SmartTVs as well as online social activities. What about online social activities? Social media is beyond the scope of our book, but any public or procurable source of data which can be cross-referenced, including social media activity data, should be considered as useful for addressable advertising purposes and considered as a source of information for companies interested in tracking customers' data.