Still Early Days for TV Ad Innovation

TV ad spend per year according to eMarketer (YoY growth):
1) 2019P — $70.8B (↓ 2.2%)
2) 2020P — $71.2B (↑ 0.5%)
3) 2021P — $70.5B (↓ 1.0%)
4) 2022P — $69.8B (↓ 1.0%)
5) 2023P — $69.1B (↓ 1.0%)

Addressable TV ad spend per year (YoY growth):
1) 2016 — $760M (↑ 85%)
2) 2017 — $1.2B (↑ 61%)
3) 2018 — $2.1B (↑ 69%)
4) 2019P — $2.5B (↑ 23%)
5) 2020P — $3.4B (↑ 33%)

Flashback: Don’t Believe Everything You’ve Heard About Addressable TV Advertising

Television homes in U.S. according to IAB (% of total):
1) Addressable — 64.3M (54%)
2) Non-Addressable — 55.6M (46%)
3) Total — 119.9M

National TV ad spend share by targeting type according to eMarketer:
1) Age/Gender — 95%
2) Advanced TV/Audience — ≈ 3%
3) Addressable — 2%

The big question: If ≈ 50% of U.S. TV households can receive addressable advertising, then why does it make up only 2% of TV ad revenue?

Video: How Nielsen Ratings Work, and Why You Can’t Apply to Join the Company’s Panel

More #1: As Targeting Comes To TV, Digital’s Mistakes Loom Large

More #2: TechBytes with Allison Metcalfe, GM of LiveRamp TV, LiveRamp

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