29 May 2013 | Blog
The cable industry is, at this point, a fairly mature industry. Acquiring new subscribers is difficult when most people interested in MVPD services already have signed up for them, which leads to increased competition as MVPDs try to acquire each other’s customers while defending their own. Which means that MVPDs are finding it more important than ever to increase the effectiveness of their own marketing to monetize and retain their existing subscriber base.
So what’s a cable marketer to do? Some have been taking advantage of a major ability that has been previously underutilized—the ability to use their own subscriber data to deliver the perfect ad to each of their customers. Household addressable TV advertising gives MVPD marketing teams a way to increase subscriptions, upgrades, VOD and pay-per-view without causing wear-out or irritation from their customers. Current customers are no longer bombarded with offers for services they already receive (nor are they taunted with introductory rates lower than what they are currently paying). Instead, they are encouraged to consider additional services or upgrades that they might actually be interested in. Marketers already using this technique have reported gratifying feedback from their own customers, who are delighted to no longer be exposed to ads for products they already bought. Just as important, these marketers have achieved substantial increases in campaign results. At an even more sophisticated level, customers who have ordered pay-per-view programming can be alerted of new content they might enjoy that is similar to what they have liked in the past. And household addressable TV advertising also enables frequency capping that keeps high volume viewers from being exposed to the same ad over and over and over again.
Since the most likely source of revenue growth is likely to be the adoption of new services by existing subscribers, MVPD marketers are just going to have to get increasingly smarter about how they compete with each other. Defending current subscribers, helping them find additional interesting services and relevant content, also helps keep them satisfied which fuels the long-term growth of the media company. And that’s an advantage that every MVPD wants to enjoy.