Unlocking the Future of Broadcast TV: Transforming Mass Reach into Precision Marketing

The Urgent Need for Precision in Broadcast TV

The shot clock is on for broadcasters to provide mass reach with one-to-one precision, and it’s an achievable goal. Here’s how to do it.

Editor’s note: This marks the debut of TV’s Multiplatform Transformation, a new column by veteran media executive Tom Sly. An expert in CTV and multiplatform monetization, Sly will explore how broadcasters can leverage their linear and streaming platforms to maximize reach and revenue.

Broadcast TV is at a significant inflection point, a time of roiling change in the industry when audiences and advertisers are shifting their viewing and investments. The question is whether the industry can move fast enough to keep up with these changes. I believe we can.

Streaming TV has revolutionized the television and entertainment industries, shifting power from traditional broadcasters to consumers and redefining the ways in which content is created, distributed, and consumed.
According to Group M’s December 2024 forecast, broadcast TV ad spending will decline by 3.4% in 2025, while streaming/addressable TV ad spending will increase by 19.3%. In 2029, streaming TV revenues are projected to surpass linear TV revenue in the U.S. The clock is ticking.

At the 2018 ANA Conference, Marc Pritchard, the CMO of Procter & Gamble, spoke of reinventing media and disrupting mass marketing. He stated that mass media must become “mass reach with one-to-one precision.” Yet seven years later, we are still operating mass media without precision. Yes, we are streaming our TV brands on apps and FAST channels. However, the vast majority of broadcast TV viewing is still occurring on linear TV, which lacks precision.

Advertisers are investing in streaming audiences because they are easy to purchase, allowing them to acquire their desired audience at scale at various stages of the marketing funnel. They can easily measure their return on ad spend, which offers precision. Addressable, targeted TV goes beyond a demographic buy, enabling advertisers to readily calculate their ROI while delivering data and precision that encourages further investment in the platform.

Steps to Transform Broadcast TV into a Precision Marketing Product

The technology and effort required are challenging and demand collaboration, but they can be achieved. Here’s how broadcast television can transform into a precision marketing product with mass appeal:

1. Make linear inventory addressable. Collaborate with TV OEMs to read watermarks and signals for addressable linear ad insertion or utilize MVPDs with DAI capability.
2. Implement watermark insertion with an automated partner like Extreme Reach. This triggers DAI while providing the ability to count the exact number of ad impressions delivered, along with a seller ID and Ad-ID.
3. Establish first-party data providers. This data is significantly more accurate for targeting and decision-making, leading to better outcomes for advertisers.
4. Connect traffic systems and ad servers. This fosters true fluidity across all audiences and platforms, expanding the available audience against a campaign’s target.
5. Develop tools for planning, selling, and buying. Training is essential to ensure that sellers and buyers can easily create targeted campaigns that reach the right audience with the right message at the right time.

None of this is easy to accomplish, but it is necessary to enable broadcast TV to participate in the streaming TV marketplace. The broadcaster will set the rules on what and when it makes sense to enable addressable ad replacement. If an advertiser is willing to pay more for a specific audience or impression to reach their desired target, that is a win for all.

Some large networks have developed their own siloed addressable solutions, appealing to advertisers. However, in the long term, what’s best for both advertisers and broadcasters is a single open technology that operates across all content, whether linear or streamed. Connecting these audiences simplifies the process for buyers to reach their target markets at scale, utilizing data that enables them to optimize outcomes.

This enhancement makes all TV a more attractive investment for everyone. It’s time for the industry to collaborate and make all audiences across every platform and device targetable with full transparency on where and when ads ran. Failure to do so will pose existential risks for broadcasters.