Author: Hannie Waldron

Addressable TV Advertising’s Growing Role in the Upfronts

a couple sitting on the couch watching TV

Over Two-Thirds of Advertisers Say Addressable TV Will Play a Role in Upfront Negotiations

Advertisers continue to lean into addressable TV advertising as a part of their multiscreen TV strategies, a figure that has seen steady growth over the past few years.

As part of this, there has been an increase in the number of advertisers considering addressable TV advertising as part of their Upfront negotiations and planning. New research with Advertiser Perceptions has found that 67% of advertisers anticipate that addressable TV advertising will play a role in their 2025-2026 Upfront negotiations.

More Than Half of Advertisers Expect Addressable TV to Be More Important in Their Upfront Negotiations Compared to Last Year

Advertisers who say addressable TV will play a role in their Upfronts expect that it will be an important part of their negotiations, with nearly 25% of advertisers saying it will be very important.

On top of that, more than half of those advertisers, 53%, say that addressable TV will be an even more important part of this year’s Upfront negotiations compared to 2024.

Today, Less Than Half of Advertisers Are Taking an Addressable-First Approach

While 80% advertisers are using or planning to use addressable TV advertising in 2025, only 44% of advertisers are planning with addressable-first strategies, with agency buyers reporting to be more likely to start with addressable compared to marketers.

However, industry research has helped to advocate for why addressable TV should be more than an add-on, showing that privacy-focused addressable advertising is the most efficient and cost-effective way to reach audiences at scale, and drives actionable and measurable results.

Optimize the Media Waterfall with Addressable

Go Addressable is committed to helping advertisers across the ecosystem unlock the full potential of addressable TV advertising and reach their audiences at scale. To learn more about the addressable TV advertising opportunity, visit goaddressable.com.

MVPD Addressable Delivers Unduplicated Audience Reach at Scale

According to the Deloitte 18th annual Digital Media Trends report, U.S. households spend $61 per month on four streaming video services, marking a near +30% lift in spend on streaming versus the prior year. As the out-of-pocket cost of streaming goes up so too does consumers’ appetite for cheaper, ad-supported options. Last November, Antenna TV reported a significant milestone when ad-supported plans accounted for the majority of sign-ups to premium subscription video on demand (SVOD) services.

Unduplicated Audience Reach Across MVPDs and Ad-Supported Streamers

While streaming may be on the rise, Deloitte’s survey also found that two-thirds of U.S. consumers still pay for either a traditional TV subscription or live streaming TV. In fact, the MVPD and vMVPD members of Go Addressable collectively represent 51M unduplicated households. We know that consumers are highly unlikely to sign on to multiple live TV services since subscribing to two would be both duplicative and expensive.

When it comes to streaming, it’s more likely that consumers and households subscribe to multiple services, resulting in limitations. To that point, Comscore data indicates that while Amazon Prime and the ad-supported tiers of Disney+, Hulu, Netflix, and Peacock collectively represent 106M households, the deduplicated count is more like 58M households. This represents a -46% decline since many households in this universe are likely subscribed to a multiple of these services.

Ultimately, what this means is that the actual audience sizes on MVPD addressable and major ad-supported streaming platforms are much more comparable than advertisers realize.

Decline in Combined Household Reach as a Result of Audience Duplication

Source: Comscore Total Home Panel, US Universe Estimates, March 2024

Addressable Allows Advertisers to Reach Unduplicated Audiences with Efficiency

With a collective reach of 51M unduplicated households, addressable offers advertisers significant scale and the opportunity to reach audiences without repetitive messaging. Advertisers that work across Go Addressable members will not only continually drive incremental reach, but they will also tap into highly engaged audiences and deliver against their frequency goals. According to The Score Report by Comscore, these five streaming services (Hulu, Netflix, Amazon Prime, Peacock, and Disney+) combined accounted for less than 10% of ad exposure time on TV in June.* By comparison, cable viewing across MVPDs and vMVPDs made up over 40% of ad exposure time on TV in June.

Not to mention, when working off an unduplicated audience base, advertisers have a more accurate representation of the actual audience size they can reach. This means that advertisers can avoid wasted ad spend against duplicated reach, resulting in a more efficient use of media spend, and in turn can gain a better understanding of overall ad effectiveness.

Ultimately MVPD addressable and streaming/CTV addressable play complementary roles. Younger audiences are watching across linear and streaming so to hit their reach goals, advertisers need to work across platforms. Leveraging MVPD addressable will consistently deliver about 40% reach regardless of target audience penetration.

*Source: Comscore, Settling the Score (October 2024).