The TV ad market is rapidly evolving as audiences’ viewing grows increasingly fragmented across a range of linear and non-linear services. Addressable TV advertising has emerged as a powerful tool to help advertisers effectively target and reach valuable audiences and make their media dollars work harder.

The new report from Go Addressable and CIMM, is based on in-depth custom research and unveils results on addressable TV advertising usage and trends. It also provides best practices for the medium, including that adding addressable TV advertising to linear ad campaigns can increase reach.

The findings further highlight the invaluable role that addressable TV plays in the overall media mix, offering key insights for advertisers looking to implement or increase addressable TV in their media campaigns and showcases the optimal uses cases for it.
 

Two-Thirds of Advertisers Plan to Start Using Addressable TV in 2025

The number of advertisers not using addressable TV advertising* has decreased by nearly half over the past two years and a significant share of those intend to start using addressable next year. Nearly 65% plan to start using addressable in 2025, a +57% lift from 2022. Of marketer respondents, 78% said they plan to start using addressable in the next year.

Increased adoption among advertisers is driven by satisfaction with the addressable TV advertising in market. 85% of advertisers report they are satisfied, with those saying they are very satisfied increasing by 61%.

Over Half of Advertisers Consider Addressable TV a Must-Buy

95% of advertisers report they are at least considering addressable TV today and over half say it is a must-buy, reflecting a +51% lift from the year prior.

The top four strategies for using addressable TV are:

1. Optimize reach and frequency
2. Complement traditional (linear) TV buy
3. Reach an audience with specific messaging/creative(s)
4. Integrate first-party and third-party data to reach the right audience

Nearly Two-Thirds of Advertisers Say Addressable TV Played a Role in Their Upfront Negotiations

Addressable TV advertising is cementing its role in the Upfronts, with 63% of advertisers saying the medium played a role in their 2024-2025 Upfront negotiations – a +34% lift from 2023.

Additionally, advertisers are saying that the role addressable is playing in Upfronts negotiations is growing in importance, with 82% saying it was important or extremely important.

Three in Five Advertisers Believe the State of Addressable is Improving

60% of advertisers believe that the current state of addressable has improved, with a +64% increase of those advertisers saying it has improved significantly in the last year.

As usage of addressable continues to become more mainstream, advertisers say the importance of receiving more education on how to plan, buy, and measure addressable TV is very important, with 58% stating they’d like more education.

The Future of Unified TV is Addressable

Go Addressable is committed to helping advertisers across the ecosystem better reach their audiences at scale. To learn more about the addressable TV advertising opportunity, visit GoAddressable.com.

Adults Are Consistently Watching Both Linear and Streaming

Contrary to some buyers’ beliefs, adults 18-34 still watch linear TV. Go Addressable partnered with MRI-Simmons to understand the viewing habits of this coveted demo, in order to provide valuable insights for advertisers and showcase how addressable TV can help reach this audience.

80% of adults 18-34 watch both linear and streaming. While adults have been found to watch streaming only at higher rates than linear only, it demonstrates the value of using addressable across linear and streaming to reach this audience.

U.S. Adults Age 18-34 in Go Addressable Footprint Spend Majority of Time with Live TV on their TV Screens

For those adults 18-34 within the Go Addressable footprint*, over two thirds are watching live. They are +25% more likely to watch live TV than those A18-34 who fall outside the Go Addressable footprint.

Furthermore, 53% time spent viewing premium video content takes place on the big screen. In fact, time spent viewing with this demo in the Go Addressable footprint is +9% more likely to be on a TV screen than outside the footprint.

Nearly Two-Thirds of All Adults are Spending Time with Cable, Broadcast or FAST Content

While adults in the Go Addressable footprint had a higher percentage of time spent watching Live TV on the big screen, it was found that in general, adults 18-34 are spending around two-thirds of their viewing time in a typical week with cable, broadcast or FAST.

The Addressable TV Opportunity

Go Addressable is committed to helping advertisers across the ecosystem better reach their audiences at scale. To learn more about the addressable TV advertising opportunity, visit GoAddressable.com.

Over the past three years, Go Addressable has partnered with Advertiser Perceptions to survey agency and brand side marketers on their intent to use and spend on addressable TV*.

In 2023, 2-in-5 addressable TV advertisers report they will spend more on addressable in 2024, demonstrating a gradual upward trend over the past three years, likely driven by increased education and understanding of how to use addressable most effectively.

Overall satisfaction is on the rise as more providers make addressable inventory available across linear and CTV. Today, nearly 9-in-10 advertisers are satisfied with addressable TV advertising as adoption and confidence in the channel have grown.

Intent to Use Addressable Has Doubled Since 2021

Further proof of the increasing strength of addressable is that non-users are much more likely to start using addressable than they were two years ago. Half report they will start using addressable next year, compared to just 25% in 2021.

Measurement and scale are the two areas where advertisers report seeing the strongest improvement in addressable TV over the past year, likely driving upward trends in positive perceptions of addressable overall.

A Bright Future for Addressable

Advertisers are bullish on addressable TV. Most say it is moving forward positively. Looking ahead, Go Addressable will continue working to accelerate addressable TV advertising by providing resources for advertisers who want to understand how they can most effectively incorporate addressable TV into their campaigns. To learn more, visit GoAddressable.com.

Over the past two years, Go Addressable has partnered with Advertiser Perceptions to survey agency and brand-side marketers on how they are planning and thinking about their media decisions.

The latest data shows that a growing number of advertisers are using addressable TV as part of their media mix. 73% of advertisers report they are currently including addressable TV in their media plans/strategies, amounting to a significant 16% lift over last year.

Convergence of Linear TV and CTV Drives Rise of Addressable

Like last year, nearly half of advertisers say that teams covering both digital and linear TV manage planning for addressable.

While addressable TV advertising historically referred to targeted ads inserted within the dedicated ad breaks of pay TV distributors (MVPDs), the definition now extends to CTV media providers and to programmers.

Top Budgets Sourced for Addressable TV

Over the past year, in order to fund their investments in addressable, advertisers were nearly just as likely to tap into CTV budgets as they were to tap into linear budgets.

51%
CTV

50%
Linear

With Growth in Addressable, Quality of Measurement Improves

Moving Forward with Go Addressable

Advertisers are all in on addressable but they still need education on how to meet measurement objectives. Go Addressable has a goal of accelerating addressable TV advertising by providing resources for advertisers who want to understand how they can most effectively incorporate addressable TV into their campaigns. To learn more, visit GoAddressable.com.

Research shows that addressable TV is well-positioned for success next year. In October of 2021 and 2022, Go Addressable partnered with Advertiser Perceptions to survey 300 agency and brand decision-makers on their plans for addressable TV in the upcoming year.

2-in-5 Non-Users Will Start Using Addressable Next Year, While Over a Third of Users will Increase Their Spend

41% of advertisers that are not using addressable will start using it in 2023, compared to just 25% surveyed at this time last year. Despite economic headwinds, advertisers recognize the demonstrated efficiency in buying addressable TV. Additionally, 37% of current users will increase their spend in addressable TV next year.

Plan to Use Addressable Next Year

(Among those Not Using Addressable TV)

Plan to Spend More in Addressable Next Year

(Among those Using Addressable TV)

Increased Satisfaction Driven by Measurement Solutions, Simplicity of Buying, and More Addressable Ad Opportunities

18% of advertisers say they are very satisfied with addressable TV ad opportunities today—a 64% lift versus the same time last year. High overall satisfaction is driven by the flexibility and adaptability of addressable.

Over 3-in-4 advertisers that have used addressable are satisfied with the measurement solutions available for addressable TV today. With increased confusion around the state of audience measurement, addressable offers advertisers the opportunity to test and learn with different measurement and attribution partners.

77%
of users are satisfied with addressable TV measurement solutions

Advertisers note that addressable is now simpler to buy, and both the number of options and cost to implement have improved. Over half of those using addressable today say they are buying from either AVOD, programmers, OEMs, or MVPDs, indicating that advertisers are partnering with multiple providers to reach their audiences across services.

2022 Most Improved Areas for Addressable

48%
Simplicity of buying

46%
Overall options

44%
Cost to implement

96%
buy addressable across more than 1 addressable partner

The Path Forward Calls for Collaboration

Advertisers are excited about the future of addressable. To sustain its upward trajectory, the industry needs to work together in maximizing the scale, impact, and adoption of addressable advertising. That is where Go Addressable comes in.

Countless options coupled with unique campaign objectives make media selection no easy feat for advertisers today. While we know there is interest in and excitement around addressable TV, what exactly is driving investment? Go Addressable partnered with Advertiser Perceptions to get a pulse on the industry by surveying 300 agency and brand
decision-makers.

Better Targeting, ROI and Past Success are Top Reasons for Using Addressable

Nearly 2-in-3 advertisers are currently including addressable in their media strategies and that’s because they understand its ability to deliver positive results.

Top Reasons for Using Addressable TV Today

(% Addressable TV Users)

48%
It provides
better targeting

46%
Ability to measure/
prove ROI

37%
Successful past
performance

Combined Linear and Digital Teams Manage Addressable

Nearly half of teams responsible for addressable TV cover both linear and digital planning – a valuable approach considering that addressable can span traditional TV and CTV.

47%
use combined linear and digital teams to manage addressable planning

Moving the Needle Forward

At least 1-in-3 are not using addressable today, and they say it’s because they do not have the budget to support it or because of a perceived lack of value relative to cost.

39%
Budget Limitations

23%
Lack of Value Relative to Cost

1-in-2 advertisers would increase investments in addressable given better measurement/proof of ROI

Half of advertisers say they would begin investing or invest more in addressable if they had better measurement or proof of ROI. Advertisers are seeking clear demonstration of value to make their media selection decisions, and the industry must continue to advocate for accurate and effective measurement.

In addressing the challenges faced by the TV ecosystem today, Go Addressable aims to advance addressable TV’s future value by helping maximize the scale, impact, and adoption of addressable advertising. To learn more about how Go Addressable is advancing the future of television, visit GoAddressable.com.

Addressable TV is defined as the ability to serve targeted ads to specific households or users based on deterministic identifiers, allowing brands to define and serve their message to the desired audience, wherever and whenever they’re watching content on TV/CTV/STB. Those targeted households can be matched to 1st, 2nd or 3rd party data sets or modeled by behavioral, demographic and/or geographic factors from 1st, 2nd or 3rd party data sets.

As the use of data and targeting continues to change the way advertisers approach advertising, addressability has emerged as an effective, accountable, and optimizable way to reach the right audience at the right time. But are advertisers ready to jump on board?

Recently, Go Addressable – a cross-company industry initiative led by Altice, Charter / Spectrum Reach, Comcast, Cox, WarnerMedia / DIRECTV, DISH Media, Frontier and Vizio – partnered with Advertiser Perceptions to conduct a survey of 300 marketer and agency decision makers to learn how advertisers are approaching this monumental shift in TV advertising.

The results show that both interest and spend in addressable TV advertising are growing in 2022:

Nearly 90% of agencies and marketers agree addressability is important to the future of television advertising.

Over 3/4 of marketers and agencies say that linear addressable is the key to solving their marketing objectives in a fragmented media world.

1/3 of addressable TV advertisers say they will spend more in addressable in 2022.

1/4 of advertisers not currently spending in addressable TV report that they plan to start in 2022.

While advertisers agree addressability is a key part of advertising’s future, not everyone is taking advantage. Education and industrywide solutions are needed to support advertisers’ adoption:

1/2 of advertisers surveyed are not currently using addressable TV advertising.

2/5 of those not currently spending in addressable TV advertising say they are unsure if they’ll do so in 2022.

While nearly 3/4 of advertisers are satisfied with current addressable TV options, only 1/10 are very satisfied.

Through education and enablement, the Go Addressable initiative is committed to accelerating the growth of addressable TV advertising and making it easier for advertisers to incorporate addressable TV into their advertising campaigns.

Advertisers and Marketers can learn more about Addressable TV advertising by visiting the Go Addressable Content Hub for timely insights into addressable TV, including blogs, videos, infographics, industry guides and more.

The Go Addressable Guide is one of the most comprehensive resource guides available for the industry. This resource is a collection of definitions, best practices, and shared learnings to enable marketers, buyers, and sellers to “go” addressable.