SEOUL -- A business alliance was formed in South Korea to introduce addressable TV advertisements as viewers watch their favorite content anytime on a variety of platforms and devices. Addressability enables advertisers to target specific audiences with relevant messages, or with assets tailored to tastes and preferences.
The alliance launched on November 18 involved MBC, a major TV station, Korean Broadcast Advertising Corporation, a medic representative in charge of TV advertisement sales, LG Uplus (LGU+), KT and SK Broadband, a broadband Internet access provider. They agreed to send out addressable TV ads through IPTV's MBC channel in 2021.
Each company will cooperate in the creation of addressable TV commercials, the analysis of viewing data and technology development. "KT has established a system for the efficient operation of addressable TV ads by adding accumulated big data analysis capabilities to advertising know-how," said KT's media platform business head Song Jae-ho.
Addressable TV advertising can show different ads to different households within a common program. Advertisers can selectively segment TV audiences and serve different ads. Segmentation can occur at geographic, demographic, behavioral and self-selected individual household levels, through cable, satellite and IPTV delivery systems and set-top boxes.
"Addressable TV ads, which SK Broadband has been developing since 2016, will quickly settle in the TV ad market and create a new ecosystem," said SK Broadband's media strategy division head Kim Hyuk. "Starting with MBC, we will continue to work with various broadcasting companies to strengthen our competitiveness in the domestic media industry."
The new method has yet to address technical and other problems such as privacy, which is a key concern as TV media is heavily regulated. Targeting individual households can be expensive.
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