NBCU Expands Its Addressable Ad TV Universe With Charter Deal

NBCUniversal has expanded its potential addressable TV households to 45 million, under a new deal with Charter Communications’ Spectrum cable TV systems.

The deal expands NBCU addressable households -- where it can make targeted-audience advertising deals with marketers --  by 40%. The integration of Charter's Spectrum video-on-demand platform is expected to launch by the end of the first quarter of this year.

Addressable advertising typically inserts commercial messaging dynamically, using aggregated and de-identified data.

Since 2015, NBCU has been offering advanced advertising deals through its AdSmart data-driven platform.

NBCUniversal also has a deal with sister company, Comcast Cable Communications.

In 2019, NBCUniversal merged its advanced ad efforts with its then recent acquisition of the European TV company, Sky, under the Sky brand name AdSmart.

Last year, Nielsen started a beta test of its addressable TV platform with A+E Networks, AMC Networks, CBS, Discovery, Fox, NBCUniversal and WarnerMedia to evaluate how the platform operates with existing and new workflows

In November/December of 2020, AMC Networks conducted a test of an addressable campaign with Omnicom Media Group for Volkswagen and another with its clients. In January, ViacomCBS and Dish Network conducted a test with ad-technology company Adcuratio.

Total U.S. addressable TV homes are now estimated to be around 75 million. Major addressable TV home providers include Comcast Corp, AT&T’s Xandr (DirecTV), Dish Network, Charter Communications (VOD), Cox Communications, Altice USA and Verizon.

U.S. addressable advertising revenue in 2020 was estimated to reach $3.37 billion -- up over 30% versus 2019, according to VAB, the TV/cable network advertising group.

For years, analysts projected addressable advertising -- due to its major promise of targeting niche audiences -- could be a major competitor to digital media. In addition, U.S. TV networks could also package its advantage of broader reach and scale versus digital media.

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