Dive Brief:
- Targeted TV ads, also called addressable ads, are expected to grow 65.8% for a total of $1.26 billion this year, according to an eMarketer forecast. While targeted ads are on the rise, they will remain a small percentage (1.7%) of overall TV spending for the foreseeable future, per eMarketer.
- Addressable ads are delivered via cable or satellite providers through internet-connected set-top boxes and are typically targeted based on age and gender. The ads are served on both live broadcasts and during on-demand viewing.
- Programmatic TV spending is also on the rise, according to eMarketer, with expectations to grow 75.7% for a total of $1.13 billion this year. The forecast calls for another 85.2% growth in 2018, bringing the total to $2.09 billion. This year’s growth would put programmatic TV spending at 1.6% of total TV ad spending.
Dive Insight:
The total numbers aren’t imposing — less than 2% of total TV spending for both targeted ads and programmatic – but the strong growth figures point to the trend of advertising experiences more commonly associated with digital advertising becoming more commonplace in the traditional TV ad space.
After years of predictions, digital ad spending finally surpassed linear TV late last year, and TV is facing marketplace challenges with falling ratings, cord-cutting reducing the number of cable TV subscribers, and younger demographics increasingly watching TV content on screens other than TV sets. The parity in ad spend suggests brands will be looking at TV and digital ad offerings with the same level of scrutiny going forward. For example, marketers have gotten used to being able to target their ads on digital as well as automate the buying and placement process — two tactics can drive the efficiency of their efforts — so platforms are hoping to gain a bigger share of TV budgets by bringing over the same benefits.
One indication of how digital and TV advertising is increasingly blurring is in April Google announced it was opening traditional TV inventory to programmatic buying through DoubleClick Bid Manager giving agencies and advertisers a way to manage video ad campaigns across TV and digital as well measure the impact of TV spots on Google searches.
