Is Dynamic Ad Insertion the Future of Television Advertising?

27 Jan

Dynamic ad insertion may be the holy grail—and the future—of television advertising. At least, that’s what some ad tech execs are claiming as they unveil new technology at this year’s Consumer Electronics Show (CES).

If you’re thinking the largest tradeshow for selling hardware is an odd place to be unveiling software that essentially operates in the cloud, you wouldn’t be alone. But the consortium that’s introducing it, OAR, is partly founded by television manufacturer Vizio, which we recently discussed.

So, what exactly is dynamic ad insertion? Basically, it allows marketers to more surgically select who sees their ads on connected TVs. But, you may say, isn’t this technology already available through programmatic ad buying platforms? Yes, it is, however this is likely the first technology to deliver ads directly to televisions. Essentially, this technology provides marketers with more accurate reach capabilities for addressable television. Additionally, because this capability is built directly into a television set (Vizio claims they will deploy it in 10 million sets this year), marketers can reach audiences regardless of what they’re watching, who their cable provider is, or what set top box they’re using.

That’s not to say that TV networks are being cut out, though. After all, they still provide the inventory. But, as one executive points out, this technology gives national broadcast firms an ad-serving capability that had previously only been available to cable and satellite operators.

Of course, the catch is that the audience will only consist of households that own a Vizio television. But if this technology takes off, and there’s little doubt that it will, other television manufacturers will likely seize on the technology to incorporate with their offerings in coming years.

It comes at a great time, too, considering that mobile overtook TV as the “channel where US adults spent the most time” in 2019. Being able to optimize ads for audiences will dramatically make TV advertising more relevant, helping to engage audiences in ways that may not have been possible previously. If attention is being divided between channels, then this move will likely drive additional value from TV ads.

For marketers, the biggest boon is being able to serve ads only to those TV audiences that are important to the brand. The advantages are enormous. For example, this technology will be very good at doing regional testing, potentially before rolling out larger, national-level campaigns, which tend to be pricier. Additionally, this may open up television inventory to advertisers who may have been hesitant to buy TV ads in the past, as it will allow them to only get their ads in front of the households that matter most to their brand.

If you think your TV ad buy could be more optimized, or you’d like to give TV advertising a shot, contact us. We have the experience, expertise, and connections with media outlets to ensure you reach your audiences effectively.