Advanced TV continues to be one of the hottest markets for investors with upwards of $100M in venture capital raised recently.
Why is there so much interest in this space? Reasons include a huge market ($70B+) that is in the early stages of transforming from mass to targeted reach.
Flashback #1: New eMarketer Report Examines Advanced TV Targeting
National TV ad spend share by targeting type:
1) Age/Gender — 95%
2) Advanced TV/Audience — ≈ 3%
3) Addressable — 2%
1) Total TV ad market — $70.2B
2) % targeted to age/gender — 95%
3) Total $ targeted to age/gender — $66.7B
4) Digital video spend — $12.6B
Big opportunity: For every $1 in digital video ad spend, there is $5 of traditional TV spend that is still targeted to age/gender.
Flashback #2: Analyst Doubles Down on Advanced TV Advertising
Quote from Omar Sheikh — Analyst @ Credit Suisse:
“Investors continue to regard U.S TV advertising as a structurally declining business, driven by erosion in viewing and competition from the growing reach of digital platforms,” Sheikh said. “In our view, if the TV industry can combine its reach with greater relevance by using technology to improve targeting, the medium will be well-placed to grow its share of the marketing mix over time. This will particularly be driven by below-the-line items, including direct mail and telephone marketing, which account for more than $100 billion of spend today.”
Flashback #3: The Data-Driven Marketing Revolution Will Be Televised
Adoption for addressable TV:
1) Fully using — 15%
2) Experimenting or not using — 85%
Adoption for advanced TV:
1) Fully using — 17%
2) Experimenting or not using — 83%
Huge opportunity: 83–85% of advertisers have not yet integrated either addressable TV or advanced TV into their ad plans.