Tapi and Bathroom Village are amongst a number of retailers to see targeted TV campaigns give business a boost.
According to new research from Sky Media and, addressable TV – which targets a specific customer type or even location – can boost ad engagement by more than a third and cuts channel switching by half.
Sky reported that 1,000 businesses have now used TV for the first time because of its AdSmart platform and is driving tangible business results with 70% advertiser return rate. In fact, brands like Barclays have won awards using linear and addressable ads to drive reach against hard to engage audiences.
In the home improvement sector, Tapi Carpets reported huge success with a campaign it ran with to target an audience in proximity to key stores, using tailored copy for each location. The retailer’s primary objective was, understandably, to drive sales and the campaign generated 7,000 purchases and £3.4million in revenue. The average spend of targeted homes was 8% higher than their normal average.
Independent garden retail business, Richardson’s Garden Centre in County Durham also talked about how a targeted campaign boosted business. Owner George Richardson explained the company ran a year-long campaign and saw a 17% spike in sales over Christmas.
Meanwhile, specialist bathroom retailer Bathroom Village, which operates showrooms in Bristol, Cheltenham, Exeter, Plymouth and Wellington, recently ran its first-ever AdSmart campaign; co-funded by three of its manufacturing partners: Burlington, Merlyn, and Clearwater. The retailer has booked seven campaigns, targeting affluent homeowners in the five postcodes, where its stores are located.
Other examples include Zap Garage Doors, which used specific data to target households in the Yorkshire area that had garages, and outdoor living brand Green Squares - a new-to-TV advertiser, that had only used digital marketing in the past. Green Squares selected geo-targeting local authority areas that surrounded the branch that it felt had the best resource to deal with responses. Green Squares audiences were selected to target affluent homeowners with above-average household incomes.
With the competition for advertising spend more and more competitive, addressable TV gives brands the ability to match the customer targeting found online but, in an engaging, brand-safe and transparent environment.
The addressable TV market has grown substantially over the past five years, with greater options now available to retailers and brands. For example, the expansion of AdSmart into Virgin Media homes from July 1 was a huge step for the proposition. It means that 40% homes will be now be 'addressable', giving brands the ability to reach 30 million individuals with relevant messaging via the medium of TV.
In a bid to measure the impact addressable TV campaigns had on consumers, Sky Media partnered with BVA BDRC, Differentology and Affectiva, utilising ground-breaking facial coding and emotional analytics. Findings are based on more than 130 campaign effectiveness projects, in which 300,000 Sky subscribers were interviewed. The research revealed:
- Addressable drives ad engagement. Facial recognition analysis revealed that when addressable ads are on TV, viewers’ attentiveness to the screen can be as a third higher (35%) and on average 21% more engaged.
- Addressable cuts channel switching during ads. An analysis using 52,000 ad breaks showed that channel switching was halved (reducing by 48%) when addressable ads were in the first three positions of a break, compared to standard linear TV ads.
- Addressable increases spontaneous ad recall. Viewers of addressable TV ads are 10% more likely to spontaneously recall an ad compared to linear TV advertising.
- Addressable is amplified when combined with linear. Combining linear with addressable TV advertising increases ad awareness by nearly a quarter (22%). When the frequency of addressable ads is equal or higher to linear exposure ad recall is boosted by half (49%).
- Addressable works. Higher engagement and relevance have clear business results, increasing purchase intent by 7% overall and by as much as 20% for new to Tv advertisers who benefit more from the exposure and credibility TV delivers.
- Tangible business results for new-to-TV brands. Local brands like Gasway (35%) and Richardson’s Garden Centre (17%) among hundreds of businesses seeing significant business growth through the use of addressable TV advertising.
Sky Media director of strategy Jamie West said: “It makes perfect sense - if an ad is more relevant to you, then you are more likely to remember it and that translates in greater impact. Marrying the expectations of digital targeting with the brand safe and transparent environment of TV is winning trust of brands, both new to TV and those that are well established.”