Addressable Advertising And The Competitive Separation Problem
The growth of linear, addressable TV spending is expected to soar by 33.1% this year as TV networks continue to put money on the table to ensure they reach the right audiences. TV networks delivering single advertiser spot optimization (SASO) campaigns are missing out on the full benefits of addressable advertising models over concerns of breaching competitive separation agreements.
Competitive separation refers to contractual agreements between advertisers and brands, ensuring that competitors’ ads don’t feature during the same ad break or possibly during the same program. Competitive separation within the addressable advertising ecosystem is complex. It encompasses several critical platforms and systems that all need to work together — and one mistake in these interweaving processes can prove fatal for the brand-advertiser relationship.
As the economic and reputational consequences of not fulfilling competitive separation agreements could be significant, ad sales teams are conservative in their approach to addressable advertising. However, with every problem comes a solution and with the right addressable TV tech stack, TV networks can protect competitive separation agreements while enjoying these models’ rewards.
Ensuring Competitive Separation, Keeping Existing Business Models
The addressable advertising ecosystem is fragmented and has historically been a roadblock for linear channels running national addressable ads at scale. Boasting different systems, it becomes challenging for these elements to work together seamlessly.
A robust ad signalling solution that integrates all parts of the advertising ecosystem, enabling information to flow, can overcome the fragmentation challenge. Ad signalling technology creates data bridges across the chain, helping ad decisioning systems air suitable ads.
The solution also delivers automation at a scale that eliminates the possibilities for miscommunication and mistakes within the addressable advertising ecosystem, protecting competitive separation agreements. TV networks have tested competitive separation while honoring their existing contracts, proving successful.
Harnessing The Benefits Of Addressable Advertising
Linear addressable TV at scale signals a paradigm shift in advertising where TV networks can activate their ad inventory to get more bang for their buck and drive new revenue streams.
Competitive separation has been an essential element of the business relationships between advertisers and TV stations — one they can’t afford to get wrong. The good news is that the right tech stacks exist and ensure that TV networks and ad sales teams won’t break a deal.
Ensuring the addressable advertising ecosystem is as automated as possible enables seamless communication across all parts vital for protecting business contracts and client relationships. Automation and communication in the addressable advertising ad tech stack are critical for media companies looking to future-proof their business. Now is the right time for TV networks to invest in technology solutions that allows them to take full advantage of the addressable advertising models of today and beyond.
Roger Franklin is GM, full-time business unit, LTN Global.