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Defining Targeted Advertising

Likely one of the hottest topics at this year’s Cable Show will be advanced advertising applications, and before the flood of news and analysis starts it would be nice to have some clear terminology as a reference point. Below are some of the key terms as I understand them.

Targeted Advertising: Advertising that is created for and delivered to specific demographic groups

Addressable Advertising: Advertising that is keyed to a specific device based on usage habits

Ad Insertion: Advertising that is dynamically delivered in real time (either during broadcast or on-demand viewing) and appropriately targeted based on geography, when content is being viewed and/or the usage habits tied to a particular device.

What nuances am I missing?

2 Responses

  1. I think the definitions are good and tie together in the following way:

    Targeted advertising is the objective. Addressability enables targeted advertising. Ad insertion (or replacement) is part of the targeted ad delivery process.

    The mechanics for delivery of a targeted ad are based on three key components: 1) the ad to be targeted must be readily available – it is therefore stored on a dedicated server; 2) the ad needs to be inserted into the video stream, or replace an ad already in the video stream (AKA splicing, or ad insertion); 3) the ad must be directed towards the correct destination (AKA routing) – the reason addressability is so important.

    You’re absolutely correct that geographic targeting is possible with only basic ad insertion (local advertising sold on must-carry channels by US telcos for example). Even very refined geographic targeting is possible with basic ad insertion (the closer to the edge of the network, the more refined targeting through basic ad insertion becomes). But demographic or behavioural targeting requires addressability.

    Addressable advertising need not rely only on usage habits. A specific device (a set-top box for example) can be cross-tabbed with subscriber information held by the network operator to generate a geographic or demographic profile.

  2. Interactive advertising?

    Long form, i.e. telescoping advertising?

    Overlays?

    In show advertising, i.e. placement?

    Digital placement?

    Advertising in Guides, i.e. not in any show?

    Long form advertising, e.g. whole shows that are advertising?

    Sponsorships?

    Etc.

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