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Pros Vs. Cons: Is Addressable TV Right For Your Marketing Strategy?

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Did you know that you can actually broadcast your commercial to specific target audience only? This technology is already available, and it’s called Addressable TV. 

This kind of marketing lets businesses advertise to their specific TV audiences by targeting them for selected broadcast commercials, and that’s what addressability actually is.

It’s incredible how far technology has come because, through this method, viewers can be assessed based on their geographical location, demographics, and even habits. Let’s say you’re a company that specializes in baby clothes. With Addressable TV, your ad will only be shown to households that meet your target audience—which is, of course, households with children.

If you’re still unsure about Addressable TV, do not worry. Below is a guide to addressable television’s pros and cons.


Targets Specific Audiences

The truth is, your service providers know a lot about you. They gather data and other useful informations. These data that they store is the kind of information they can use for marketing.

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They can deliver targeted ads through specific audiences using your TV boxes (think Dish and DirecTV). With Addressable TV, you don’t have to worry about people not taking an interest in your ads, because chances are, the only ones watching your commercials are the ones who genuinely have an interest in it. Your message is made clear, people see it, hear it, and then, if all goes well, react to it by purchasing.

Allows you to Test the Market

If you’re a smaller company looking to invest in TV commercials for the first time, then perhaps Addressable TV is for you. With this feature, you won’t need to spend too much to be able to get to those hard-to-reach audiences. Testing the market before launching a product or a service is a critical component in any business. Here’s how you check your market:

  • Create a prototype
  • Determine a competitive price
  • Target potential customers, in this scenario you can use Addressable TV
  • Get feedback from your market

You can test this advanced new feature without committing too much money on it. Of course, if you do decide to adopt this strategy in the long run, you’ll have to do more than just test it out.

An Advantage Over Other Companies

There are at least 75-85 million households all over the country that are considered “addressable.” This is a huge market to tap into. If you take advantage of this audience, then you’ll be able to one-up your competition.

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For example, a product that has launched an Addressable TV campaign will be able to get a quicker market insight because of the reach they have. This broader reach will also mean they can consistently tweak their product towards what the market wants. However, those who are still using traditional marketing strategy will have to go through the process a little longer.

This is a growing trend that hasn’t quite seen a boom yet. It is the perfect time to jump right into it. If you’re looking for a unique market and a wider audience reach, then this is definitely for you.


Not all Cable Providers are on Board

Traditional TV will have a lot to catch up on while digital networks are already offering this service. Some other cable providers aren’t cut out for it though, but only because their equipment is a bit outdated. It’ll certainly take time for them to fully catch up, which means your choices for service provider will be limited.

Geography Size Matters

Don’t go into this if you haven’t adequately taken account the size of your audience. The bigger the place, the wider your demographic will be. The smaller it is, the more limited your audience will be.

For example, think of this—advertising in New York City versus advertising in Fort Worth. Apparently, the demographics in both places will be different. Testing out your market in only one location won’t cut it and will not provide you with definitive results.

To maximize sales and really increase viewer engagement, you have to think big. If you can only afford to tap into one geographic location, then perhaps reconsider your option.

You Can’t Focus all your Efforts on it

Addressable TV sounds like a dream, doesn’t it? You show the ad to your specific market, and you can be done with it. But that kind of thinking will only burn a hole into your budget. For it to work, you have to keep in mind that it is just one of the many sales channel you can use.

You don’t just throw one commercial and hope that it’ll make up for all the expenses. No, you still need to make up for it on other fronts—radio, branding and even print ads. Not only do you end up paying for Addressable TV, but you also have to pay for all the other marketing efforts you are making. It’s definitely not going to be easy on your budget especially if you have limited resources.


While Addressable TV is a growing trend, it’s still important to adequately take into account the pros and cons. Keep a specific list of products or services in mind as not all of them will work with this method. Just keep in mind that Addressable TV grows as much as technology does. It’s an evolution of mass media. Take advantage of it or walk away from it—in the end, the choice is yours to make.

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