The global addressable TV sector is now a $56 billion industry and could reach $87 billion by 2027, according to new research by Ampere Analysis.
The company has conducted over 100 interviews with advertisers, streamers and agencies – supported by extensive bottom-up market modelling and quantitative consumer research – to produce the report in partnership with GroupM Nexus’s addressable TV solution Finecast and Microsoft Advertising.
Among the report’s findings are:
- An average of a sixth of advertisers’ video advertising budgets are currently being spent with addressable TV service providers. This is as high as a fifth in mature markets like the US, with all major industry categories represented among addressable TV advertisers.
- Both B2B and B2C marketers are using addressable TV to support performance marketing and brand-building objectives, targeting specific audience segments or geographies.
- Brands are using addressable TV to extend campaign reach beyond broadcast TV. This is key in younger groups for whom the aggregate reach of addressable TV services provides a nearly 25 per cent incremental reach boost over total monthly broadcast TV reach in developed markets.
The report also predicts that even for those media buyers who have already incorporated addressable TV into the media mix, there will be a host of new and emerging technologies and screens that will support future campaigns.
Interviews revealed that connected cars have already debuted as an addressable TV channel in some markets, with some brands taking advantage of geotargeting opportunities to reach passengers with messaging, said the report.
It also suggests that new technologies such as generative AI may begin to support the creative process in the next few years, helping to address the practical challenges associated with developing the multiple creatives required for dynamic or addressable creative campaigns.
Speaking about the report, Dave Osborn, general manager, sales at Microsoft Advertising, said: “Addressable creatives already allow media buyers to adapt messaging by audience group and in response to events, keeping commercial messages fresh and relevant. However, many of the most exciting developments in the addressable TV market have yet to be fully explored by brands. As many advertisers now see addressable TV as a core part of their media mix, their focus will shift to take full advantage of the capabilities of addressable TV and innovations such as generative AI and emerging technologies.”