Join us to learn our outlook for digital advertising, including connected TV, retail media, search, social video, audio, out-of-home, addressable TV, and programmatic

In other words, in addition to linear TV, OTT, CTV, addressable TV, video-on-demand (VOD), and other digital elements should be considered as part of the ticket. At the most fundamental level, this involves changing the way media is purchased, planned, delivered, and ultimately consumed—all working back from consumer intelligence.

That’s a significant drop in the addressable TV universe, which makes it even more remarkable that addressable ad spending will increase as much as we expect. Prediction. We might never see increases to TV ad spending after 2022, but addressable will gain ground.

COVID-19 has dampened 2020 TV advertising—however, data-driven linear (DDL) and addressable TV stand ready to scale as economic conditions eventually return to normal.

(Our CTV ad spend forecast excludes network-sold inventory from traditional linear TV and addressable TV advertising on IPTV boxes.) TV ad spending will also get a boost because of the increased addressability of linear TV inventory and better ad performance measurement. Prediction. IPTV’s growing penetration among cable subscribers will boost the CTV ad market.

We expect significant increases in both US addressable TV and linear programmatic TV spending:. US linear addressable TV ad spending will grow by a compound annual rate of 21.7% to $4.22 billion by 2023. US linear programmatic TV ad spending will increase by 20.9% to $7.95 billion in the same time frame.

Moreover, video is central to several other growth areas, such as digital OOH and addressable TV, highlighted in the same survey. In both areas, ad professionals polled said they anticipated spending at least 22% more this year than last. Social video has a promising future too.

We define linear addressable TV as targeted TV ads delivered on a home-by-home basis via cable and satellite boxes, including video-on-demand (VOD) content accessed through a pay TV login but excluding CTV and OTT. Linear programmatic TV ad spending will also grow this year with a 35.4% increase to $5.44 billion.

Advertisers also use addressable TV to target customers throughout various life cycle stages. In Forrester Consulting’s study, 44% of marketers used addressable TV to reach customers at the onboarding stage. About a third used addressable TV to reach customers during the support and purchase stages. And roughly one-fourth used addressable TV at the consideration and awareness stages.

We expect spending on linear addressable TV ads in the US to rise by 33.1% this year to $2.85 billion. Spending on linear programmatic TV ads will climb even faster, by 35.4% this year to $5.44 billion.

Even linear addressable TV advertising is a bright spot in the otherwise flat traditional TV market. These positive changes notwithstanding, ad buyers and sellers have been hard-pressed to solve the all-important challenge of how to implement measurement standards across linear TV and CTV. This is the biggest item on the to-do list of an otherwise robust and growing digital ad market.

Addressable TV and digitally enhanced targeting across screens will help merge TV and video audiences. Video ad spending now exceeds TV ad spending in Canada. Media buyers at agencies and brands should analyze whether their media mix reflects this trend, and fine-tune video budget allocations if an imbalance is evident.

CTV does not include ads delivered to computers, phones, tablets, or other non-TV devices, and it does not include network- or broadcaster-sold inventory from traditional linear TV or addressable TV advertising. We also don’t include the vast majority of social video ad spending because it largely comes from outstream mobile ads. But does it include OTT? It may—if that video is streamed via a TV set.

Examples include display ads that appear on home screens and in-stream video ads that appear on CTVs from platforms like Hulu, Roku, and YouTube; excludes network-sold inventory from traditional linear TV and addressable TV advertising.