Addressable TV Is No Longer “Optional” – It’s Table Stakes
Going into 2025, advertiser conversations around addressable TV are different than they have been in past years. Considered an “add-on” by many just a few years ago, addressable TV is now considered a “must-buy” among the majority of advertisers today. This shift represents a new level of maturity in how the advertising industry views addressable, and an important milestone in bringing TV advertising in line with shifts in consumer viewing behaviors.
For advertisers who have yet to leverage addressable TV, nearly two-thirds plan to integrate it into their strategies in 2025. Likewise, a similar proportion (63 percent) of advertisers say that addressable played a role in their 2024-2025 upfronts negotiations, a 34 percent jump over 2023. In other words, addressable TV is now a core component of media planning, and it’s reshaping best practices for buyers in interesting ways.
Why the Addressable TV Conversation Has Changed
One of addressable TV’s strengths lies in its ability to combat fragmentation, as linear addressable providers offer significant unduplicated reach. In fact, a Comscore analysis of Go Addressable’s network of MVPDs and vMVPDs found virtually no duplication across 51 million households.
Addressable TV also allows advertisers to tailor their strategies in unique ways. It’s a tool for reaching niche audiences with customized messages, managing ad frequency, and proving measurable outcomes. Operators, leveraging rich data sources including names and addresses, can deliver unparalleled targeting precision. This flexibility extends to optimization, allowing advertisers to pivot their campaigns in near real-time to maximize ROI.
That said, there is a big difference between growth in streaming and growth in ad inventory in streaming. Yes, streaming behavior is skyrocketing, but brands can only reach viewers on ad-supported streaming. This dichotomy should be kept in mind when planning campaigns. Viewers on ad-supported streaming understand and appreciate that their programming is subsidized by ads. However, if brands are going to interrupt the viewer experience, they do need to make it important.
Despite its strengths, addressable TV still comes with challenges—although many of the continued obstacles are ones based on perception versus the full picture. One primary concern is cost. Many advertisers still compare addressable TV CPMs to traditional 18-49 linear audience benchmarks without factoring in reduced waste and improved targeting efficiency. This narrow view can obscure the true value of addressable, where effective CPMs can yield better returns by cutting down on irrelevant impressions.
When planned effectively—integrating linear and addressable to maximize reach and frequency—addressable TV can overcome real and perceived limitations. Educating advertisers on the nuances of addressable—and providing the data to back it up—is essential to shifting the conversation from high sticker prices to tangible outcomes.
How to Leverage Addressable TV for Maximum Success
For advertisers looking to make the most of addressable TV, a strategic approach is key. Addressable isn’t a one-size-fits-all solution; it’s a versatile tool that should be tailored to specific campaign goals. Here’s what that looks like:
- Define clear KPIs: Start with your desired outcomes and work backward. Whether the goal is brand awareness, lead generation, or sales, clarity on objectives will inform every decision. Linear and streaming accomplish different goals, and they should be considered at the outset.
- Understand your audience: Build a well-defined audience profile using deterministic data. Knowing your target’s preferences and viewing habits is critical to crafting effective campaigns and balancing the linear and addressable pieces of your campaign.
- Integrate addressable strategically: The right balance of linear and addressable for a given brand will depend on many factors. Advertisers today recognize that addressable isn’t just “something they need to have.” The mix matters. Some advertisers begin with broad linear campaigns and use addressable to refine reach. Others lead with addressable to establish frequency and layer on linear for major events like sports or award shows.
- Focus on optimization: Use addressable’s flexibility to test, learn, and pivot. This is one of its strengths. Continual adjustments based on performance data will maximize ROI.
Addressable TV demands a less siloed approach. Consumers don’t distinguish between linear TV and streaming; to them, it’s all television. Advertisers should mirror this mindset internally.
As performance-driven brands look beyond search and social for their next growth channel, emerging solutions are lowering barriers to entry by helping businesses of all sizes leverage their first-party data for TV buys. Meanwhile, advances in measurement and attribution are making it easier for brands to validate their investments.
As advertisers embrace a more holistic view of television, the role of addressable TV within the mix will continue to grow. Its ability to bridge the gap between traditional and digital media ensures that campaigns are not only effective but also meaningful to consumers.
[Editor's note: This is a contributed article from New York Interconnect. Streaming Media accepts vendor bylines based solely on their value to our readers.]
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