DirecTV (NYSE: DTV) has struck a deal with Starcom MediaVest to test targeted TV ads next fall, according to The Wall Street Journal. The technology allows marketers to serve commercials relevant to specific households based on third-party data providers.
Starcom, which WSJ projects will spend $10-20 million on the initiative, brings blue-chip marketers to the table. They will be able to access up to 25% of DirecTV’s ad inventory under the plan.
While most TV advertising can be characterized by what marketers have long derided as the “spray and pray” approach, this so-called “addressable advertising” fetches significantly higher ad rates because commercials are far likelier to be seen by consumers more likely to be interested in the products.
Targeted TV ads have been hailed for years as a gamechanger in mass-media marketing but have been slow to market because of the complexity of the technology and concerns over privacy. DirecTV will not be able to access subscriber identities and plans to give its subscribers the option to opt out if they desire.