Television Update H2 2017: Advanced TV's Progress - eMarketer
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Television Update H2 2017: Advanced TV's Progress

eMarketer Report

By: eMarketer

Published: August 10, 2017

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Advanced TV—which includes addressable, programmatic, and over-the-top (OTT)—continues to build momentum. The TV marketplace is better prepared to transact in a digital-like manner due to sophisticated targeting that is driven by data and automation.

  • There are many subsets of advanced TV, but what they all have in common is the expansion of TV’s capabilities beyond what was possible with just an analog signal and a receiver. Addressable, programmatic, OTT and interactive are all examples.
  • Superior return on investment (ROI), driven by data-enriched targeting, will combine with an increase in available inventory to drive demand for addressable advertising. Simplifying addressable planning and buying could be an additional growth catalyst.
  • Programmatic TV (PTV) ad spending is expected to reach $3.80 billion in 2019 from a current level of $1.13 billion in 2017. PTV buys are being transacted with a variety of inventory types, including premium linear inventory.
  • PTV front-end planning systems that link available inventory to advanced targeting descriptions are informing TV buys. Fully automated transactions, however, are not yet a reality, as order execution systems are yet to be integrated with planning tools.
  • Standardization among advanced target definitions, data sources and buyer-seller deal parameters will be necessary for the volume of PTV transactions to increase to a meaningful level.
  • OTT shows promise as an ad medium, despite the currently limited audience size and ad inventory. The emergence of DirecTV Now, Sling TV and other virtual multichannel video programming distributors (vMVPDs), which offer lower-cost skinny bundles of content, may help expand the market. Surfacing relevant content for OTT viewers is one important way to increase their viewing time, and both Hulu and Roku (among others) have created tools for this purpose.

"US addressable TV ad spend is expected to grow from $1.26 billion this year to $3.04 billion by 2019."

Table of Contents

Addressable TV

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Programmatic TV (PTV)

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Over-the-Top (OTT)

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7 charts are included in the full report:

Television Update H2 2017: Advanced TV’s Progress

US Addressable TV Ad Spending, 2015-2019 (billions, % change and % of TV ad spending)

Addressable TV

US Addressable TV Ad Spending, 2015-2019 (billions, % change and % of TV ad spending)

Key Drivers of Addressable TV Ad Spend

Leading Benefits of Addressable TV Ads According to US Addressable TV Decision-Makers, March 2017 (% of respondents)

Cost and Scale: Two Major Inhibitors to Growth

Leading Obstacles to Increasing Addressable TV Ad Spending According to US Addressable TV Decision-Makers, March 2017 (% of respondents)

US Addressable TV Households, by Provider and Type, 2017 (millions)

Programmatic TV (PTV)

US Programmatic TV Ad Spending, 2015-2019 (billions, % change and % of TV ad spending)

Over-the-Top (OTT)

US Connected TV Users, by Device, 2016-2021

Subscription Video-on-Demand (SVOD) Services Used by Internet Users in North America, Q1 2017 (% of respondents)