Long a concern of many marketers, addressable TV advertising still needs a better return-on-investment (ROI) measurement for the business to accelerate.
A new study by Go Addressable, the pay TV provider consortium, in conjunction with Advertiser Perceptions, says half of advertisers would increase their investment in addressable products if the business remedied some of their concerns.
Among the marketers who have are currently not committed to
addressable TV, nearly 40% of advertising executives point to budgetary limitations.
In addition, 23% of those who have not spent on addressable agree there are concerns over the “lack of value relative to cost.”
Traditional TV addressable advertising allows marketers to swap out creative messaging depending on the specific household consumer target.
eMarketer projects that linear TV addressable spending will grow 27.4% to $3.63 billion this year, and 16.2% to $4.22 billion in 2023.
Addressable TV ad spend is still around 5% to 6% of total TV advertising revenues.
Go Addressable partnered with Advertiser Perceptions to survey 300 agency and brand marketing/advertising executives.
Of those surveyed, 66% are currently buying addressable advertising inventory. The top reasons for those marketers are as follows: 48% say it provides better targeting, 46% say there is an ability to measure and prove out ROI, and 37% point to successful past performance.
Go Addressable members include Altice USA, Comcast Advertising, Cox Media, Dish Media, DirecTV Advertising, Spectrum Research, and Vizio.