Overall spending on addressable television advertising is poised for massive growth and could total $3.3 billion by 2020, according to the Video Advertising Bureau.
The VAB just released a marketing guide, Address For Success, and the organization found that 6 out of 10 advertisers using addressable TV say it’s a valuable part of their media buy and are planning to increase their investment. As a result, the VAB believes addressable will grow 343% increase from 2016 to 2020.
There is still lots of potential upside for addressable. The VAB estimates just 40% of U.S. addressable TV agencies and marketing professionals are currently making a significant investment in platforms, and that 71% of these marketers have been buying addressable TV for less than one year.
The VAB said that the U.S. footprint for addressable TV has increased 30% since 2016, outpacing the growth of streaming services like Netflix, Amazon Prime Video, HBO and Roku. The organization also said that the U.S. addressable TV audience P2+ has grown 27% to more than 162 million over the past two years.
“Addressable advertising continues to gain tremendous traction in the marketplace, and is changing the way brands reach consumers on television,” said Jason Brown, senior vice president of ad sales partnerships for Xandr. “We also see advertisers using addressable technology to better reach ‘light TV viewer’ households in a more effective way, which is improving the efficiency of their TV buys. We are excited to collaborate with the VAB on ‘Address for Success, and to continue to share with the industry the advancements advertisers are making in the addressable TV space.”
The VAB, which services as a resource for advertisers, counts A+E Networks, Altice USA, AMC Networks, BET Networks, CBS Broadcasting, Charter Spectrum Reach, Cinema Advertising Council, Comcast Spotlight, Cox Media, The CW, Discovery, Inc., Disney/ABC Television Group, ESPN, Fox Broadcasting, Fuse, GSN, Hallmark/Crown Media, Mediacom / OnMedia, NBCUniversal, National CineMedia (NCM), Newsy, Reelz, Screenvision Media, Spotlight Cinema Networks, Tennis Channel, Turner, Univision Communications, UPtv, Verizon Fios, Viacom Media Networks, WGN America and Xandr among its members.