Sky Media has revealed the impressive power of addressable TV advertising based on a five-year study that covered 130 campaign effectiveness projects and which used facial coding, emotional analytics and interviews with 300,000 Sky subscribers. The AdSmart: 5 Years and Forward study shows that addressable advertising increases spontaneous ad recall by 10% compared to linear TV advertising and spontaneous brand awareness increases on average by 4% versus linear advertising (and in certain categories can be as high as 13%).
“Brand awareness is something all brands strive to achieve. This is something that takes time, and companies spend millions on. It takes years to build up brand awareness and equity,” Sky Media points out, highlighting the importance of the findings. Explaining the ad recall lift using addressable, the company says: “It makes perfect sense – if an ad is more relevant to you, then you are more likely to remember it.”
The long-term study was conducted with the help of BVA BDRC, Differentology and Affectiva and is the most comprehensive research into the UK addressable TV market ever. It shows that campaigns that include AdSmart alongside linear spot activity are 14% more likely to be discussed with friends and peers by the viewers exposed to them. “Generating word of mouth can lead to brand advocacy – the holy grail of effective advertising,” says Sky Media.
Addressable advertising using AdSmart increased purchase intent by 7% among users, taking all campaigns as the sample. Purchase intent increased by as much as 20% for new-to-TV advertisers, who benefit more from the exposure and credibility TV delivers.
Advanced facial decoding technology showed that AdSmart audiences had a 13% higher emotional response when viewing TV adverts compared to linear audiences, with this figure being the average across all campaigns. The emotional response uplift could reach as high as 22%. “This is key for advertisers because emotion creates memories, drives recognition and ultimately translates into positive ROI,” Sky Media explains.
Enjoyment of TV advertising increases by more than 10% when compared to enjoyment among viewers watching linear advertising only. An analysis using 52,000 ad breaks and Sky’s 500,000-strong viewing panel showed that channel switching was reduced by 48% when addressable ads were in the first three positions of a break, when compared to standard linear TV ads. Engagement with advertising (defined by how attentive a viewer is to the advert while it is on screen, using facial recognition analysis) was an average of 21% higher than for linear audiences.
Commenting on the increased enjoyment of TV advertising, Sky Media asks: “Why wouldn’t people start to like TV adverts more? They’ve seen brands and companies that they never normally would have seen on TV, from exclusive high-end brands to small local companies advertising in their local area, all specifically targeted to their own lives and interests.”
New-to-TV brands are among the biggest winners from addressable TV, with tangible business benefits. Sky points to two AdSmart advertisers who grew their businesses by 35% and 17% thanks to their addressable campaigns. The former is a regional heating installation and servicing company and the latter is a garden centre. A carpet maker, meanwhile, generated over 7,000 orders worth £3.4million, with the sales directly attributed to their AdSmart campaign.
New-to-TV brands can expect a 20+% boost in purchase metrics, according to Sky Media. “They benefit from the brand building power and exposure TV provides,” Sky Media notes.
Three-quarters of the top 100 UK brands use AdSmart, with a 70% return rate among companies that have used addressable TV advertising. Sky Media reckons addressable is now becoming part of the mainstream media mix. AdSmart inventory is found on over 100 channels including Channel 5, the UK public broadcaster, and on Viacom, NBC Universal, Discovery, A+E Networks and Fox networks.
The expansion of AdSmart into Virgin Media homes, as part of a far-sighted collaboration between the two rival Pay TV operators, expands addressable reach for media buyers. The new footprint covers 40% of TV households, or 30 million individuals.
Jamie West, Director of Strategy & Capability Planning at Sky Media, comments: “TV is well-known for its impressive brand building abilities. Now with clear evidence of the effective performance of highly targeted campaigns across TV, its full potential is being discovered and unleashed by broadcasters, viewers and brands.”