Addressable Targeting: When Deterministic Data Matters Most
There’s no one-size-fits-all approach to advertising and its goals. Sometimes marketers want to raise awareness of their brand or category. Other times they want to accomplish very specific goals — prompt sign-ups, drive foot traffic to stores. Your campaign goal will determine which types of data to use.
Inside, we’ll discuss addressable targeting, which relies on the availability of deterministic availability.
Confused? Don’t worry, we’ll explain everything.
ADDRESSABLE TARGETING DEFINED: HOW IT WORKS
Addressable targeting is the ability to deliver ads to the screened devices of users within specific households. It’s addressable because we have a piece of data that allows us to associate a specific digital TV to a specific household. Going further, we can segment the addressable market into audiences based on factors like geography, demographics, and behavioral attributes.
Addressable targeting allows you to focus your campaigns, such as a CTV campaign, on households that meet your specific criteria, allowing you to personalize your messages to the audience.
But is it scalable? How much of the US can you actually reach via addressable targeting? The answer may surprise you. For instance, there are over 126 million households within the U.S. that Simpli.fi can reach — nearly every household in the nation.
Match rate — aka addressable reach — is a challenge for demand-side platforms. These platforms lean on non-household level identifiers, like IP addresses provided by data clearing houses, which have an average match rate of 40% to 60%.
Simpli.fi takes a completely different approach, targeting with plat-line precision with precise geo-fencing solutions. As a result, we have a match rate of 90% or greater for our addressable campaigns.
WHAT IS DETERMINISTIC DATA?
Generally speaking, digital ad campaigns target based on deterministic data, probabilistic data, or some combination of both.
Deterministic data is data directly known and confirmed, usually through direct interactions or reliable sources. If a screened device is located within a specific plat line, we can say this device is associated with the household in that plat-line boundary.
In CTV campaigns, deterministic data could involve attributes like a viewer’s age, gender, location, or interests gathered from verified sources or actions, such as user registrations or when a user opts in to ACR data collection.
Probabilistic data is either inferred or estimated. For instance, a CTV viewer who watches cooking shows is a cooking enthusiast and will be interested in ads that cater to foodies.
WHEN DETERMINISTIC DATA MATTERS MOST
Deterministic household data matters most when you need a precise advertising strategy with privacy-compliant reporting down to one side of a street (zip+4). This level of precision will allow you to scale data-driven targeting methods at the household level with robust reporting to prove out performance.
Going further, deterministic data allows you to customize your target audience and create unique data segments, so you can personalize messages where it counts. For instance, with Simpli.fi’s Addressable Audience Curation Tool, you can plan, create, and activate audiences in real time using 3,000+ data variables that span a wide array of attributes.
Deterministic data is also essential for audience retargeting, especially when ads are designed to prompt users through the consumer journey. In such cases, deterministic data helps you ensure your retargeted ads are shown only to users or households that have seen or interacted with a previous ad.
Finally, deterministic data helps in attribution and campaign reporting. Company leadership often asks its marketers: What business outcomes did you achieve as a result of the campaign? Deterministic data lets you optimize every campaign using precise ZIP+4 reporting with online and offline attribution—at a national scale.
Addressable Targeting, fueled by deterministic data, allows you to launch performance-based campaigns that drive measurable business outcomes. In the process, you can gain much more insight about the households that engage with your ads and convert.
Ready to reach up to 126 million households using Simpli.fi’s highly accurate addressable targeting?
Fill out the form below, contact your Simpli.fi representative, or email us at hi@simpli.fi for your next steps.
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