Addressability in marketing

Addressability definition

Addressability is the concept of tailoring messages to individual viewers across multiple marketing channels, including emails, app notifications, and ads. Addressable advertising is a narrower concept, and as the name suggests, it refers specifically to targeted advertising. Instead of presenting everyone with the same material, companies can serve different ads to different users, based on factors such as their interests, location, or online activities. For example, a user might see an ad for a shoe company selling everyday wear, but the ad would be more effective if, for instance, a woman who was previously searching for bridal gowns would see the advertisement for white, elegant shoes. Addressable advertising is the foundation of modern advertising. It’s worth knowing that it relies on three main elements: data collection, segmentation, and ad delivery:

• Data, which is the most valuable resource in the process, can come from first-party, second-party, or third-party data. First-party data is directly collected from users via publishers’ own channels, while second-party data is exchanged between two companies that have a direct, trusted relationship. Third-party data is collected by external data providers;
• Segmentation comes into play right after collecting user data and involves grouping people by traits they have in common, like where they live, what they like etc.;
• Ad delivery is the outcome of the two processes mentioned above: data collection and audience segmentation. Thanks to it, personalized ads are served to the right people at the right time.

What is the addressability gap

To put it simply, the addressability gap is like missed opportunities. It’s the difference between the audience a marketer wants to reach and the audience they actually reach, meaning all the users who should have seen the ad but didn’t. It’s most often caused by strict privacy standards, tracking limitations, data access problems, or ongoing technological changes that lead to this gap by reducing the accuracy of audience targeting.

What is the addressable audience

An addressable audience is a group of people that has certain traits, making them more likely to engage with a specific ad. This strategy enables advertisers to shift away from generic messaging and instead deliver tailored content that more effectively meets user needs. A non-addressable audience, on the contrary, is a general audience that advertisers typically reach through traditional methods, such as general broadcast TV.

Challenges and benefits of addressability

The concept of addressability in digital advertising presents both benefits and challenges, particularly in the context of the industry’s shift toward a more privacy-focused environment. Here are the most important factors to keep in mind:

• One of the most obvious benefits of addressable advertising is that ads become more relevant to each viewer; in other words, advertisers are able to deliver messages that fit the right context and audience, and in consequence, advertising becomes more cost-effective;
• Many marketers face issues with data quality. Additionally, strict data privacy rules pose significant challenges for marketers seeking to effectively target their audience.

Your chance to win

Addressability isn’t just about precision; it’s about elevating every ad impression into a strategic opportunity. At optAd360, we know a lot about that! Although we acknowledge the importance of every part of the ad chain, from advertisers, who want their ads to reach the right audience, to users, who don’t want to see irrelevant ads, we specifically offer great solutions to publishers. One of them, Recovery Tool, allows you to monetize every ad impression that would otherwise go to waste. This way, everyone wins: advertisers, because their ad is displayed; users, because they can access content for free and sometimes discover great products and services – but ultimately it’s you who increases your earnings! Every ad impression is a chance. Don’t let yours slip away, and join us!