Television Update, Fall 2018

Television Update, Fall 2018

Advanced TV’s Progress in Addressable, Programmatic and OTT

Executive Summary

Advanced TV advertising—including addressable, programmatic and over-the-top (OTT)—continues to gain traction. Changes in how TV is viewed and granular measurement are transforming the TV marketplace. Standardization of audience and performance measurement and reporting is a tall order for addressable TV, programmatic TV and OTT initiatives but would drive more ad dollars to these advanced TV offerings.

How much ad spending will go to addressable TV?

Addressable TV advertising spending is expected to grow from $2.06 billion this year to $3.37 billion in 2020, fueled by new sources of ad inventory and more efficient pricing. Addressable campaign execution may become easier as MVPDs Comcast, Cox and Charter set up a central organization for selling addressable inventory. Xandr, a4 and Frontier are also putting together a joint offering.

How much ad spending will programmatic TV get?

Programmatic TV (PTV) ad spending is on track to reach $4.7 billion in 2020 from a current level of $1.7 billion. Front-end PTV ad inventory avail systems for advanced targets are now being used for developing TV schedules. Connection with order placement and financial systems will likely take three to five years. For the foreseeable future, most PTV deals will be made privately, with agreed upon transaction rules—and pricing and inventory guarantees—between select buyers and sellers.

What is driving OTT ad spending?

OTT TV ad spending growth is in hyperdrive as more ads become available through a diverse group of OTT purveyors, including MVPDs, OTT pure plays, connected device companies and TV manufacturers, like Samsung, that are now selling advertising through smart TVs. Marketers are being drawn to the OTT space to achieve granular, digital-like targeting in a low ad-clutter environment; they’re also looking for younger viewers who are watching less linear TV.

WHAT’S IN THIS REPORT? Growth estimates and the key drivers for addressable, programmatic TV buying and over-the-top (OTT).

KEY STAT: Addressable TV advertising spending, fueled by new sources of ad inventory and more efficient pricing, will grow to $3.37 billion in 2020.

Here’s what’s in the full report

2files

Exportable files for easy reading, analysis and sharing.

8charts

Reliable data in simple displays for presentations and quick decision making.

11expert perspectives

Insights from industry and company leaders.

Table of Contents

  1. Executive Summary
  2. Addressable TV
  3. Programmatic TV
  1. Linear Over-the-Top (OTT) TV
  2. Key Takeaways
  3. eMarketer Interviews
  1. Read Next
  2. Sources
  3. Media Gallery

Interviewed for This Report

Julie Anson
Magna Global
Associate Director Partner Innovation, Advanced TV
Interviewed September 24, 2018
Kevin Arrix
Dish Media Group
Senior Vice President, Dish Media Sales
Interviewed October 12, 2018
Paul Haddad
a4 Media
President
Interviewed October 23, 2018
Brian Hughes
Magna Global
Executive Vice President, Audience Intelligence and Strategy
Interviewed September 25, 2018
Mitch Oscar
USIM
Director, Advance TV Strategy
Interviewed September 27, 2018
Dan Robbins
Roku
Director, Ad and Programming Research
Interviewed October 5, 2018
Jenny Schauer
Digitas
Vice President, Group Director
Interviewed October 11, 2018
Ben Tatta
605.TV
Co-Founder, President
Interviewed October 8, 2018
Beth Weeks
Digitas
Vice President, Director, Media
Interviewed October 11, 2018
Nicholas Hartofilis
Zenith
Executive Vice President, National Video Activation
Interviewed October 11, 2018
Jamie Power
one2one Media
COO
Interviewed September 28, 2018

authors

Gerard Broussard

Contributors

Chris Bendtsen
Senior Forecasting Analyst
Lauren Fisher
Principal Analyst
Monica Peart
Senior Director, Forecasting
Sharon Tan
Researcher
Paul Verna
VP, Multimedia