Addressable and programmatic TV ad spending continues to rise as the TV industry undergoes technological change.

Programmatic TV Ad Spending. As more automation comes to linear TV ad buys, US programmatic TV ad spending will more than double in a four-year span. It will reach $8.42 billion in 2024, from $4.01 billion in 2020. As a percentage of total TV ad spending, programmatic will grow by a similar margin in that time, to 12.5% in 2024 from 6.5% in 2020. Linear Addressable TV Ad Spending and Households.

In just a three-year span, linear programmatic TV ad spending has more than doubled. Our linear programmatic TV forecast is a subset of our linear TV forecast. It does not affect our programmatic digital video numbers or our CTV numbers. How Did Our Forecast Change? We keep raising our estimates because CTV ad spending continually outpaces even the most aggressive forecasts.

In May, we updated our forecasts for US linear addressable and linear programmatic TV ad spending. Linear addressable is growing steadily and will near $4 billion in spending by the end of 2023; that’s about double its pre-pandemic levels. While linear addressable is growing, its ceiling is limited. This is because the number of addressable TV households keeps shrinking due to cord-cutting.

Linear programmatic TV ad spending will also grow this year with a 35.4% increase to $5.44 billion. By the end of our forecast period in 2023, it will near $8 billion and account for more than one-tenth of total TV ad spending.

US linear programmatic TV ad spending will increase by 20.9% to $7.95 billion in the same time frame. While these rates are significant, they point to a shift in traditional TV ad spending rather than overall growth in the format.

Programmatic TV ad spending will be more resilient than other forms of TV ad spending this year. Still, we updated our 2020 US programmatic TV ad spending forecast from $4.73 billion to $4.03 billion. But even after the downward adjustment, programmatic TV ad spending is set to increase by 46.2% this year.