Addressable TV Registers Slow Growth Amid Price, Targeting Concerns

While addressable TV is growing, getting more advertisers to commit media dollars will continue to take some work for addressable sellers.

Top two concerns for advertisers: finding convincing arguments from sellers that can deliver better reach for their target audience, and finding a more attractive cost.

Those reasons scored nearly a 50% response from advertiser and media agency executives -- per a study by Advertiser Perceptions, in response to the question: “What would persuade you to move to a must buy?”

At the same time, among those who have used addressable advertising successfully, the study says 51% agreed they “effectively reach my desired target.” This came from responses to the question: “Why was your addressable media campaign valuable?”

Some 35% agreed those campaigns were “cost-effective.”

On a more positive note, 51% agreed there has been an increase in spending for addressable TV, since its scale/reach is growing. GroupM’s Modi Media estimates there are 57 million U.S. addressable TV homes out of 115 million overall U.S. TV households.



From the study, Advertiser Perceptions concluded that 63% of advertisers now consider addressable TV an important part of their media mix, with 54% planning to increase spending in the next 12 months, amounting to an average projected increase of 10%.

Research was conducted from online interviews in March with 154 advertisers -- 49% client, 51% agency -- with an average TV spend of $50 million.

1 comment about "Addressable TV Registers Slow Growth Amid Price, Targeting Concerns ".
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  1. Ed Papazian from Media Dynamics Inc, April 25, 2017 at 4:32 p.m.

    So 63% of advertisers think "addressable TV' is an important part of their media mix but if that's true, why do they spend so little on it---barely $2 billion this year? This makes you ask whether most of those surveyed even know what "addressable TV" is----or is supposed to be?

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