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State of the Screens

On Addressability Ad Initiative Has Its First Member: AMC Networks

By June 17, 2020No Comments

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

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.

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