Addressable Advertising Forecast to 2025

Addressable TV advertising will leap from $26.5 billion in total worldwide revenue in 2019 to almost six times that value at $85.5 billion by 2025. This reflects advertising dollars switching to addressable as the platforms mature and are better understood by the advertising community.
This is the principal finding of the latest Rethink TV report, Addressable Advertising Forecast to 2025 Addressable advertising boom across all regions and platforms.

Aggregation of inventory will be a key driver by increasing the size of addressable targets, making them viable for larger brands and overcoming fragmentation within the ecosystem. The main boost for broadcasters and Pay TV operators is that these adverts fetch higher CPMs (Cost Per 1000 impressions) than general spots broadcast to all viewers of a program.

The boom in addressable TV advertising coincides with a decline in traditional pay TV viewing in some of the leading markets, including the USA. This is reflected in addressable accounting for an increasing proportion of total TV advertising revenue over the next 6 years. In terms of impressions, addressable accounted for just 2.4% of total TV advertising in 2019, rising by about 3.5-fold to 8.5% by 2025. But because addressable ads cost more their revenue contribution is greater, reaching 32.8% or virtually one third by 2025.

The report breaks down the analysis of addressable and online TV advertising by the main geographical regions, identifying key drivers and constraints in each case.

Companies mentioned in this report:

ABC, Alibaba, Amazon, AMC Networks, Apple, AT&T, Baidu, Barclays Bank, British Airways, CBS, Changhong, Channel 4, Clypd, Comcast, Comscore, Discovery, Disney, ESPN, Facebook, Freeform, Free Sheel, Hearst Television,  Hisense, Hotstar, Liberty Global, NBCUniversal, Netflix, Nielsen, Roku, Sky, Skyworth, SportX, Star India, Tencent, Turner, Virgin Media, Vizio, WarnerMedia, Xandr, Xiaomi, Youtube