Addressable TV Eyes $2 Billion Marketplace

Addressable TV advertising looks to more than double its current revenue in two years.

The Video Advertising Bureau estimates that total addressable TV advertising revenue will climb to $2.2 billion — covering 74% of U.S. TV homes by 2018.

Currently, the TV industry trade group estimates that revenue from addressable TV is nearly $900 million in 42% of TV homes.

The VAB says that just looking at addressable TV’s audience of 128 million would rank among the top 10 Internet platforms — ahead of Instagram, LinkedIn, Twitter and Pandora — and estimates that nearly 60% of advertisers plan to run addressable ads the next year.

Addressable TV, so-called one-to-one TV marketing — where for example, dog owners could get dog-food marketing commercials — has “got real scale, attention and accountability in trusted content without the bots, ad blocking or viewability issues that typify the digital environment,” stated Danielle DeLauro, senior vp of strategic sales insights for the Video Advertising Bureau. 

The VAB estimates 71% of marketers are willing to pay higher cost per thousand price (CPMs) with addressable ads -- which can span live and on-demand TV.

1 comment about "Addressable TV Eyes $2 Billion Marketplace".
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  1. Long Ellis from Longview Media Consulting, November 17, 2016 at 1:26 p.m.

    Good summary Wayne. There is a lot to do in terms of how the mechanics of this will work. The devil is in the detail when it comes to estimating audiences and helping TV Networks and MVPDs make good inventory allocation decsions. All sellers of addressable TV campaigns will need a highly sophistcated inventory management and pricing platform that can help them make complex allocation decisions between national, regional, zone and HH campaigns and across mulitple audience targets. One 30 second spot can literally be priced 1,000 different ways depending on the circumstances. The buy side will also need an easy way to aggregate all the various addressable footprints together and activate a buy that can scale to their satisfaction. This speaks to the need for a centralized marketplace. 

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