Calculating the Benefit of a Targeted TV Ad

Companies are racing to build complex systems for targeting TV ads, betting consumers will prefer them and they’ll save advertisers money.

Some are starting to spill out interesting data to support their case.

One company, Simulmedia, says that set-top boxes that saw a targeted promotion tuned in two to three times more to the show being advertised than set-top boxes that didn’t receive a targeted promotion.

The New York company doesn’t target the ads to set-top boxes but buckets set-top boxes into groups based on what content they watch and recommends what programs advertisers should advertise on if they want to reach a certain types of viewer; then they can determine which set-top boxes saw an ad and whether those boxes tuned into the show.

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