Addressable TV Advertising Continues to Grow
Go Addressable, a non-profit trade organization, and Advertising Perceptions, a research-based strategic market intelligence and expert analysis firm, reports that over the past four years, addressable TV has become a vital channel for advertisers, with more than half now saying addressable is a must-buy, after being viewed as an add-on just three years ago.
And 95 percent of advertisers said they are at least considering addressable TV today. The number of advertisers not using addressable TV advertising has decreased by nearly half over the past two years, and nearly 65 percent plan to start using addressable in 2025, up 57 percent from 2022.
Addressable TV advertising enables companies to serve targeted ads to specific households or users based on deterministic identifiers. Its importance really came to light this year, with 63 percent of advertisers saying the medium played a role in their 2024-2025 negotiations, according to the research. This reflects a 34 percent jump from 2023 negotiations.
The Go Addressable and Advertiser Perceptions study also revealed an upward trend in the following areas:
- 51 percent of agencies and marketers found improvement in the simplicity of buying addressable TV.
- 85 percent of advertisers say they are satisfied with the current state of addressable TV.
- 60 percent of advertisers believe the current state of addressable TV has improved.
- 64 percent increase of advertisers who say it has improved significantly in the past year.
"In today's fragmented TV landscape, it's more challenging than ever for advertisers to efficiently and confidently reach intended audiences," said Tim Myers, executive director of Go Addressable, in a statement. "Addressable TV that is powered by deterministic data is a powerful tool that not only makes media buying more effective and brand-safe for advertisers but ensures an optimal experience for viewers in terms of frequency and relevancy of the ads they receive."
The results of this study correspond with new findings from The Score Report by Comscore that viewing across multichannel video programming distributors (MVPDs) and virtual MVPDs accounted for roughly half of all ad-supported viewing time in June, while leading streamers combined accounted for less than 10 percent. Additionally, MVPDs and vMVPDs see virtually no duplication across 51 million households and any two services from the premium ad-supported streamers have lower reach than addressable TV.
As usage of addressable continues to become more mainstream, 58 percent of advertisers in the Go Addressable/Advertising Perceptions study said more education on how to plan, buy, and measure addressable TV is very important. So the two entities identified the following top four strategies for using addressable TV:
- Optimize reach and frequency;
- Complement traditional (linear) TV buy;
- Reach an audience with specific messaging/creatives; and
- Integrate first-party and third-party data to reach the right audiences.