PREDICTION: ADDRESSABLE TV ADVERTISING IS SET FOR RAPID GROWTH

The addressable tv advertising market is set for rapid growth, according to a new report. Its volume is expected to increase from the current usd 56 billion to usd 87 billion in 2027.

The volume of addressable TV advertising is set to increase by more than 50 percent globally by 2027 and account for 40 percent of total TV investment. This is the estimate by Ampere Analysis and Group M. Traditional TV advertising still accounts for most TV investments, but its share is declining at the expense of new TV advertising opportunities. At the same time, the overall 10-year outlook to 2027 shows that the total amount of investment in TV advertising is increasing.



The report indicates that on average, one-sixth of advertisers’ video advertising budgets are spent on addressable TV advertising. Both B2B and B2C advertisers are using addressable TV for performance marketing and branding, taking advantage of more precise targeting of selected audiences. Addressable TV is also suitable for extending the reach of campaigns beyond broadcast TV. This is key with younger audiences, where incremental reach can be increased by up to 25%, according to the study. However, it is still a more expensive form of advertising, and for this reason smaller brands are not using it.

In addition, based on the interviews with executives collected for the research, the report indicates several potential barriers to the future growth of addressable TV advertising. Even in developed markets, there is insufficient awareness of the possibilities offered by this advertising format.

In the Czech market, advertising placed in HbbTV is replacing the possibilities of addressable TV advertising. The two main commercial groups, Nova and Media Club, offer a range of formats in HbbTV to extend the reach built through traditional TV advertising.

According to data from Nielsen, which measures TV and video content viewership for ATO, the number of active users of the red button or HbbTV (Hybrid broadcast broadband TV) on the Czech market is one million. In the Czech Republic, 92% of households have a TV set, of which 49% own a connected TV. Nearly a quarter of TV households (23%) have access to HbbTV. However, the number of viewers who have the option to watch HbbTV is higher. According to the above data, and the data reported by domestic TV groups, it is up to 2.5 million viewers.

Source: mediaguru.cz