Advertisers and brands spend enormous amounts of money to have their ads created and aired, and if that money isn't made back, then those advertisers can lose brands as clients. One of the problems that advertisers face is waste in advertising, and it's essential that this waste is eliminated if possible—and even if it can't be eliminated, it has to be reduced. The brand wants a good return on its investment, meaning that it wants new customers, and waste can interfere with that goal.
What Is Advertising Waste?
Waste is pretty much what you think it is—wasted time, wasted money, wasted effort. In advertising, this means losing money by showing ads to people who just won't care. For example, showing ads about infant formula to people who have no interest in having more kids is a waste of time. No one in that group takes action by seeking out that formula, and the formula brand gets no new customers.
It's true that advertising can spread indirectly, meaning that those people who don't want kids may know others who do and could spread the word about that brand. But you can't assume this is going to happen all the time.
You have to strike a balance between targeting your favored demographic and leaving the boundaries of that group a bit nebulous so that you get that secondary, word-of-mouth exposure.
How Do You Get Rid Of Waste?
One way to do that is through addressable advertising. Rather than just throwing your ad on TV into any available spot, you'd have it air in regions where it would apply most (e.g., an area of a city known for having a high population of young families and new couples starting out) and at times when they'd be most likely to watch.
And that timing is serious business. Those young couples could spend much of the day working, and the young families could have such busy schedules that they aren't near a TV during the day. That means you need to seek out alternative forms of media to find that audience. Internet algorithms are an example of targeted, addressable advertising, and you can use the addressable strategy via radio as well.
There's no one addressable strategy that will apply to all situations. However, the narrowed focus of these ads means less money is spent on ads in markets and at times when the ads won't have an effect. If you want to reduce or eliminate advertising waste, these narrower audiences and parameters that come with addressable advertising services are a necessary part of your advertising strategy.