Highly targeted addressable TV ads elicit more positive reactions and greater short and long-term business impact, according to new research.
GroupM conducted research on the effectiveness of addressable TV advertising through Finecast, its own addressable TV solution. The research, conducted in collaboration with System1 – a marketing decision-making platform – involved more than 13,000 TV viewers in Canada, the U.S., U.K and Australia.
The research used System1’s platform that rates an ads’ short and long-term potential based on viewers’ second-by-second emotional responses to creative from 46 of GroupM’s clients. Ads were evaluated according to three measures: a “star rating” that measures positive emotional response to determine long-term impact; a “spike rating,” based on how intensely viewers reacted and how quickly they connected the ad to the brand, determining the short-term impact; and a “fluency rating” that indicates how quickly viewers recognize the brand.
The long-term impact of TV ads was stronger for addressable audiences. Ads shown to addressable TV audiences averaged a 3.0 star rating, ranking them in the top 33% of all ads. Conversely, non-addressable TV ads averaged 2.4 stars, ranking them in the top 52% of ads.
The research also found stronger emotional intensity and a quicker response. Addressable TV ads elicited strong emotional intensity, with 7% greater happiness and 6% fewer neutral reactions than the broader audience. Addressable audiences also respond more quickly than the broader audience.
“Our research outlines that addressable TV advertising has a direct impact on how consumers ‘feel’ and outlines important factors for maximising attention for greater business effects,” said Kristian Claxton, managing partner of global innovation at Finecast. “This enables us to provide smarter and more robust solutions to our clients by helping them optimize the creative message of their ads while improving efficiency.”
The highest performing ads among addressable audiences were more likely to feature right-brain features. Ads with melody, people, humour and familiar places – right-brain attributes that trigger broad-beam awareness – produced more positive reactions, producing longer-termed effects leading to long-term business growth.
Here in Canada, GroupM’s Chief Investment Officer Lindsey Talbot adds, “The rapid shift of viewership and spend within the addressable TV space provides us with the perfect opportunity to support our Canadian broadcaster partners and invest more into their premium connected TV content.”