Ad Age Digital DigitalNext MediaWork Now that Canoe Ventures is readying the launch of its first national addressable advertising product, dubbed the Cable Advanced Advertising System, in four to six weeks, just how ready is the industry to start using it? Depends whom you ask.
In a panel at the National Cable and Telecommunications Association’s Cable Show in Washington, top cable network executives, distributors and media buyers spoke about the industrywide initiative that has the top six cable operators working in concert with each other to make advertising relevant to TV viewers based on data such as household income, purchasing behaviour or demographics.
For the cable networks, Canoe’s “creative versioning” technology is an opportunity for incremental revenue, as well as targeting that can make programs and ads more relevant.
According to David Verklin, CEO of Canoe Ventures, “We have the ability to run an American Express Green Card ad nationally, and their Gold Card ad can run in 370 zones in America where the average household income is above Green Card households.”
Mr. Verklin said two cable networks are already prepared to use the new CAAS product when it launches later in second quarter.
The remaining question for cable networks is how to sell CAAS’s reach to advertisers, said David Levy, president of Turner Broadcasting Sales. “If you get too targeted, what’s the premium and is there going to be enough of a premium?” he said. “This is additive; it’s not going to shift dollars to ‘reach’ buys. So for national buys, it’s good to have targetability, but it has to have valuable information.”