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What is addressable TV?

Addressable TV refers to a form of targeted advertising that allows advertisers to deliver specific ads to individual households or devices while they are watching television. It leverages data and technology to enable advertisers to reach specific audiences based on various demographic, geographic, or behavioral factors.

In traditional TV advertising, the same ad is broadcasted to all viewers within a particular time slot or program. However, addressable TV takes advantage of advanced data analytics and digital capabilities to deliver different ads to different households or devices during the same program or commercial break.

Here's how it typically works:

1. Data collection: Providers of addressable TV services gather data from various sources, including cable or satellite providers, set-top boxes, smart TVs, or streaming platforms. This data helps in understanding viewers' preferences, demographics, viewing habits, and interests.

2. Audience segmentation: Advertisers can use this collected data to segment the audience based on specific criteria. For example, they can target households in a particular geographic location, households with specific interests, or households that meet certain demographic characteristics.

3. Ad insertion: When a particular program or commercial break is about to air, the addressable TV platform selects the most relevant ad from a pool of available ads that match the criteria of the targeted audience. The selected ad is then inserted into the broadcast stream only for the specific households or devices that meet the targeting parameters.

4. Personalized ad delivery: Each household or device receives a tailored ad that is more likely to resonate with their interests or needs. This customization allows for more relevant and engaging advertising experiences.

Addressable TV offers several benefits compared to traditional TV advertising. It allows advertisers to reach specific target audiences with more precision, reducing wasted impressions. It also enables measurement and attribution capabilities, providing insights into the effectiveness of ad campaigns. Additionally, addressable TV allows for dynamic ad insertion, meaning ads can be updated or changed in real-time, offering greater flexibility for advertisers.

It's important to note that the availability and implementation of addressable TV may vary depending on the region, service providers, and technological infrastructure.

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