Big news: AMC has signed onto On Addressability, the addressable TV initiative launched with Comcast, Cox, and Charter’s Spectrum Reach last June.
Why this matters: Addressable TV advertising is primarily confined to the 2 minutes per hour that the local distributor (MVPD, etc.) can sell. This initiative aims to apply addressability from Comcast/Cox/Charter to the ≈ 14 minutes per hour that the network sells.
Ad minutes per hour (% of total):
1) National – 14 (87%)
2) Local – 2 (13%)
≈ 5-15% of Spectrum Reach’s linear inventory is used for addressable advertising.
Bottom line: Pay-TV providers can offer addressable advertising, but they only account for ≈ 3% of all TV ad impressions. Initiatives such as On Addressability or Project OAR offer a potential 10X increase in addressable TV ad impressions.
Quote from David Kline – President @ Charter’s Spectrum Reach:
“If TV could act more like digital and get richer metrics and be able to, in a privacy-compliant way, help target [viewers] that focuses on audiences versus ratings, they would have something. Now they do. Now they have an opportunity to compete and make their networks more powerful through enablement through MVPDs (multichannel video programming distributors),”
Flashback #1: OpenAP and NCC Media partner to expand advanced advertising on TV
Flashback #2: Who Sells What? NCC Media And Xandr Aim To Consolidate The Confusing Addressable TV Market
Addressable TV spend by year (YoY growth) according to eMarketer:
1) 2016 – $760M
2) 2017 – $970M (↑ 28%)
3) 2018 – $1.5B (↑ 51%)
4) 2019P – $2.0B (↑ 37%)
5) 2020P – $2.9B (↑ 44%)
6) 2021P – $3.5B (↑ 21%)
More #1: Why Addressable Advertising Is Finally Getting Closer To Mass Adoption
More #2: Comcast opens cable box VOD content to programmatic ads
More #3: Interview With Addressable TV Market Maker Tracey Scheppach
