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State of the Screens

Addressable TV ad spend very much alive, shows no sign of slowing

By April 11, 2019No Comments

A new report projects that Addressable TV advertising will grow to $3.4B by 2020.

Addressable TV ad spend by year according to the Video Advertising Bureau:
1) 2016 — $760M
2) 2017 — $1.22B (↑ 61%)
3) 2018 — $2.06B (↑ 69%)
4) 2019P — $2.54B (↑ 23%)
5) 2020P — $3.37B (↑ 33%)

Addressable TV households in the U.S. (% growth):
2018–64.0M (↑ 30%)

This accounts for 54% of all U.S. TV households.

Quote from Allison Metcalfe — GM of TV @ LiveRamp:
“There is no denying that addressable TV is growing in the U.S. It hasn’t quite hit critical mass, but it’s well on its way. In 2016, penetration of addressable TV advertising in the U.S. sat at 46%of households. That’s expected to grow to 74% by 2020.”

Challenges remain: The actual inventory that is available for addressable TV targeting is constrained to the 2 minutes per hour that the pay-TV provider can access. This is roughly 1/8 of the total ad minutes that addressable enabled households receive.

More #1: As TV Turns Digital, Ad Tech M&A May Get Second Wind

More #2: Addressable TV Is Creating New Advertising Capabilities…And They Are Not Going Away

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.