Published   Rethink TV Forecasts

Addressable advertising boom across all regions and platforms – EXECUTIVE SUMMARY Free Download

Addressable Advertising Forecast to 2025

Addressable TV advertising will leap from $15.6 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 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.

This boom in addressable TV advertising will occur in all sectors of pay TV and all major geographies over the next 6 years, engaging viewers, driving response for brands and boosting revenues for video service providers.

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.

There are three types of addressable TV: linear TV, VoD/catch up and Connected TV (CTV) delivered by traditional pay TV operators over the Internet.

The rise of Connected TV is also a major driver and has propelled much of the early growth in addressable TV advertising, especially in North America and the larger economies of Asia Pacific. This reflects lower barrier to entry since ads can be targeted more easily to TVs that are directly connected to the internet, avoiding the need for a dedicated platform. CTV advertising will continue to account for most of the growth in addressable TV advertising, but coming from a lower base linear and VoD TV advertising within the traditional broadcast service will actually register larger percentage gains over the period until 2025.

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.

Who should read this report and what should they get out of it?

This report is compelling reading for anyone who is involved in planning TV advertising campaigns, including programmatic, addressable or broadcast campaigns and VoD advertising.

It will also help software vendors in the ad tech market get to grips with demand, and help broadcasters, pay TV operators and streaming specialists plan their advertising strategy.

Readers should be operating at the C-Suite level of executives, or as strategy advisers, as well as their support teams.

This report would benefit being read in conjunction with our previous content reports, for instance on Sports Rights or eSports emergence, and customers will find if they buy one, they have immediate access to the others.

This report will;

  • Give you a planning tool for the transition into addressable advertising of all types
  • It will also give advertisers confidence on whether to follow this lead into addressable advertising and how
  • It should help anyone positioning in the advertising technology market to measure their future success

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

For more information contact:

Natalia Szczepanek (Client Relations and Marketing Manager): [email protected]

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Contents 2

Graphs and Tables 3

Consolidation and convergence around common metrics and platforms will
push addressable out from early adopters 4

Sector and Geographical Discussion 7

Connected TV (CTV) 7

Linear TV Addressable Advertising 10

VoD and catch up addressable advertising 14

Online Video Addressable 18

Technology and Standardization 21

Conclusion 23

Rethink TV: Forecasting disruption in video 24

Contacts 25

About Rethink Technology Research 26


Addressable TV Advertising Revenues by category 2019 4

Addressable TV Advertising Revenues by category 2025 4

Linear Addressable Impressions 5

Connected TV Addressable Revenues 7

CTV Addressable Revenue Shares by Geography 2018 8

CTV Addressable Revenue Shares by Geography 2025 8

Linear Addressable Impressions 12

Linear Addressable Revenues 2019 13

Linear Addressable Revenues 2025 13

VoD Addressable Impressions 16

VoD Addressable Revenues 2019 17

VoD Addressable Revenues 2025 17

VoD Non-addressable Impressions 18

Online Addressable Impressions Totals 20

Online Addressable Revenues 20