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Untapped possibilities: Addressable TV for SMEs
RTL AdAlliance has released a white paper on the potential Addressable TV (ATV) offers SMEs (small- to medium-sized enterprises) to reach their customers.

While SMEs that have advertised via ATV are convinced of the benefits – 73 per cent would do it again – the majority (90 per cent in Germany) have not heard of ATV or know nothing about it. These stats show the untapped possibilities of ATV, which can help SMEs meet specific goals such as branding and recruiting, while offering high-quality, flexible and brand-safe advertising opportunities paired with adjusted booking volumes.

All of these findings are included in RTL AdAlliance’s first SME white paper. The white paper, which is particularly relevant for sales houses and agencies that sell ATV to SMEs, shows how these companies use ATV in Germany, the potential benefits and challenges, and tools and solutions offered by RTL AdAlliance.

Niche targeting

Since SMEs often operate in niche sectors or offer their products and services to limited audiences, traditional TV advertising has been financially unattainable so far – due to the many-to-many targeting approach that reaches overly broad or unspecific audiences. ATV can help SMEs reach the growing number of consumers who watch TV via internet-enabled smart TVs with targeted ads.

Despite this, only 9 per cent of the respondents interviewed named TV as their preferred advertising channel, while only 4 per cent use ATV as their medium of choice. Many SMEs are not yet aware of the benefits of digital advertising formats on linear TV. A large portion – 57 per cent – of German mid-sized companies use social media for advertising – simply because they find social media advertising affordable and easy to use. 59 per cent choose advertising channels based on ease of access, while 48 per cent focus on cost efficiency. Only 10 per cent, however, understood the advantages of ATV: simple usage and great value for money.

A convincing format

Those who have used ATV are convinced by the format. 73 per cent of SMEs that have already used ATV will continue to use targeting advertising in a premium environment, while 30 per cent will continue to use it to display targeted ads in a high-quality environment. 25 per cent view television as a prestige medium, and 22 per cent believe it has a high impact on branding and advertising.

As shown by the white paper, ATV offers low minimum booking volumes, simple access, scalable tools and automated campaigns. ATV is much more affordable and less complex for SMEs than traditional TV advertising and many other digital formats. According to RTL AdAlliance’s New Life of the Living Room study, 73 per cent of Europeans own a smart TV. ATV offers SMEs the chance to reach targeted customers within this 73 per cent.

Fabian Burgey, Director SME Business Europe, says: “SMEs make up 99 per cent of businesses in Europe. Their strength lies in their geographical proximity to their customers, and ATV gives SMEs the opportunity to increase their awareness locally and become even more present within their communities. When SMEs choose to advertise via ATV to reach their very specific target groups, it is not only them, but also the broadcasters and sales houses that benefit. With our tools, RTL AdAlliance can offer suitable and scalable products to link broadcasters and SMEs. In this white paper we show how our self-booking tool lowers the entry-barrier for SMEs into TV advertising and introduce a completely new solution for decentralised Point of Sale (PoS) marketing for franchise systems and retailers."

Contacts

Oliver Fahlbusch

Executive Vice President Communications & Investor Relations, RTL Group

+352 / 24 86 5200

oliver.fahlbusch@rtl.com

Irina Mettner-Isfort

Vice President Media & Investor Relations, RTL Group

+49 221 456 56410

irina.mettner.isfort@rtl.com