Chicago marketer Starcom MediaVest Group (SMG) and satellite TV provider DIRECTV signed an agreement in principle that has SMG assisting DIRECTV in delivering scaled, household-addressable advertising to customer households that use DVRs.

The deal, which the two dub “the first of its kind on a national level,” reportedly makes SMG the first agency network to “provide its clients with the ability to address highly relevant advertising messages, including the right to be the first to identify the audiences that best fit their clients’ needs for addressability,” the partners say.

“The consulting segment of the SMG/DIRECTV relationship begins immediately, with the addressable ad technology set to begin testing in 2011,” the two noted in their announcement this morning. “After testing is complete, DIRECTV will deploy household-addressable advertising capability to the nearly 10 million customers expected to have DVRs, with 25 of the top-rated cable networks.”

“This is a glimpse into our industry’s future. Up until now, we’ve only been able to test the power of addressability in local markets. We proved its value beyond a shadow of doubt, but hadn’t yet conquered scale until now,” adds Laura Desmond, CEO at SMG, whose clients include Procter and Gamble, Coca-Cola, and General Motors. “As a result of this partnership with DIRECTV, we can now invest our client’s dollars in addressable messaging at the national level. We believe this is the tipping point, an entirely new marketplace is being created and shaped that will increase marketing effectiveness.”

How lucrative is this new ad partnership? According to Tracey Scheppach, senior vice president/innovations director at SMGx, the trading and innovation arm of SMG, “At SMG, we’ve run the numbers and feel confident that the creation of a viable national addressable platform can infuse $10 billion in incremental revenue into the television marketplace as its appeal is universal and has the ability to bring a whole new class of marketers to the medium. It’s taken years of hard work to get this far, but we’ve got light at the end of the tunnel and we’re ready to put our money on the table.”

As part of the advertising deal brokered by SMGx, media agency clients will be able to segment their ads on a national level to selected consumers based on multiple factors, including geography and customer segmentations, as well as third-party sources and the marketers’ consumer databases.

The Daily

Subscribe

Some Operators Ending QAM Video, Forcing IPTV Switch

While many consumers are choosing to drop traditional cable video service, a few operators, including Cable One and GCI, are giving them a push to IP video.

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Calendar

Jan 21
Cablefax 100 – 2022 Nominations Due: January 21, 2022
Mar 11
The FAXIES 2022Entry Deadline: March 11
Apr 1
Cablefax Top Ops – 2022Nominations Due: April 1, 2022
Jun 3
The Diversity List – 2022Nomination Deadline: June 3
Aug 12
Most Powerful Women – 2022Nominations Due: August 12
Full Calendar

Jobs

Seeking an INDUSTRY JOB?
VIEW JOBS

Hiring? In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors, The result will be an even more robust industry job board, to help both employers and job seekers.

Contact John@cynopsis.com for more information.