RTL AdAlliance has published the findings of research on SMEs and their attitude towards Addressable TV advertising (ATV). The findings are particularly relevant to sales houses and agencies that broker ATV to small and medium-sized enterprises.
The first SME white paper produced by RTL AdAlliance, the international sales house of RTL Group, shows how mid-sized companies in Germany engage with ATV advertising, what potential the format offers, which challenges SMEs should account for when entering TV advertising, and what tools and solutions RTL AdAlliance can offer.
ATV removes the hurdles for small and medium-sized enterprises to enter the world of TV advertising. SMEs often operate in niche sectors or offer their products and services only in limited areas. Traditional TV advertising has been financially unattainable for many SMEs so far. The difficulty derives from reaching overly broad or unspecific audiences, because of a many-to-many targeting approach. The survey reveals the amount of unexploited potential that the SME business holds for ATV. So far only 9% out of the respondents interviewed name TV as one of their preferred advertising channels. 5% chose traditional linear TV advertising, while 4% were already well aware of the benefits of ATV and used it as their medium. ATV helps SMEs reach – in moderate volumes – the growing number of consumers who watch TV via internet-enabled smart TVs with targeted ads.
Although advertising for SMEs has recently become increasingly digital, many are not yet aware of the benefits that digital advertising formats for linear TV broadcasting can bring. A large portion of German mid-sized companies (5%) use social media for advertising purposes. Not due to their belief that these platforms are the most effective for their advertising efforts, but because they find the provided buying tools to be the easiest to use and the most affordable. 59% choose the channels they advertise on mainly because they are easy to access, and 48% because they are particularly cost-effective. More than half of the respondents (54%) indicated that they have never heard of ATV, 36 were aware of the term but only 10% knew what ATV and its advantages were: simple usage and great value for price.
The SMEs who have already advertised with Addressable TV are convinced by the format. 73 per cent of companies that have already made use of ATV state that they will continue to use targeted advertising in a premium environment. 30 per cent of those who use ATV for their campaigns do so because they want to be able to display targeted ads in a high-quality environment. This is closely followed by the fact that they view television as a prestige medium (25%) and see it having a high impact on branding and advertising (22% each).