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Addressable TV advertising generating greater long-term growth

Brands that invest in ads for broad-beam attention are more likely to achieve longer-lasting business results among addressable TV audience, says research released by GroupM-owned TV technology provider Finecast.

The Addressable//Advantage study is the latest in a series of research reports underwritten by Finecast, which is looking to offer enhanced education and performance in addressable TV. The study outlined how addressable TV advertising has a direct impact on how consumers ‘feel’ and outlines important factors for maximising attention for greater business effects.

The research was conducted in The research, conducted in collaboration with System1 – a provider of advertising effectiveness solutions – and involved more than 13,000 TV viewers in four countries.

Fundamentally it showed that TV ads elicit more positive reactions and greater short- and long-term business impact among addressable audiences. In addition, addressable TV ads that emphasise melodic music, people touching, a clear sense of place and humour produce more intense emotional reactions and long-lasting. The latter had with 7% greater happiness and 6% fewer neutral reactions.

In addition, the long-term impact of addressable TV ads was meaningfully stronger for addressable audiences. Ads shown to addressable TV audiences averaged 3.0 Stars, ranking them in the top 33% of all ads. Conversely, TV ads averaged 2.4 Stars among the broad, nationally representative audience, ranking them in the top 52% of ads. (System1’s IPA-validated Star Rating scale is from 1.0 to 5.9 Stars with +0.3 representing a meaningful uplift).

TV ads elicited strong emotional intensity among the addressable TV audience, including more positive emotion. Addressable audiences responded more intensely than the broader audience, therefore addressable TV ads are predicted to achieve better short-term business effects. Addressable TV audiences have an average Spike Rating that is 6% higher than the broad audience.

Ads with melody, people, humour and familiar places – right-brain attributes that trigger broad-beam awareness – produced more positive reactions, which lead to long-term business growth.