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Addressable TV: a US perspective

December 3, 2015 22.16 Europe/London By Chris Dziadul, Future TV Advertising Forum, London

Modi Media VolvoThere are now 43 million households in the US that have the technology inside boxes to insert commercials targeting individuals, according to Michael Bologna, president Modi Media.

Speaking in a session entitled The Science of Targeting, he added that his company sits down with advertisers to see whom they want to reach. It then sells just to targeted households and tells the advertisers how many saw their commercials.
Bologna said that such household targeting in the US is currently worth only $150 million, which is extremely small compared to the overall TV ad spend.

He also cited the example of a targeted campaign that Modi Media ran for Volvo. It generated 59 sales, worth $1.7 million, and gave the company valuable experience in how to run such campaigns, which can be undertaken for most products, including pet foods.

Modi Media has 67 clients and has already run over 110 campaigns. Its business is allowing the digital dollar to flow back into TV.

Although Bologna predicted that addressable ad spend would triple in 2016, he was unable to say how the market would look in five years. However, it will certainly be helped when national ads become addressable, though this is unlikely to happen in less than that time.

Bologna also made the point that in the US, local CPNs for addressable TV are much higher than national ones. They have a huge range, from $20 up to $250.

Modi Media is a TV business unit of GroupM. Launched in January 2014, its brief is to cover the practices of digital content distribution, addressable TV, hyper-local TV and interactive TV

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Filed Under: Newsline Tagged With: Modi Media, US Edited: 3 December 2015 22:16

About Chris Dziadul

Chris is our Central & East Europe Editor. You can talk to Chris on Twitter @chrisdziadul or by email at cdziadul@broadbandtvnews.com

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