The global addressable advertising sector hit $56 billion in revenue last year and will reach $87 billion by 2027, according to a new report published Monday by Ampere Analysis.
The new data was culled in partnership with GroupM Nexus and Microsoft and based on “over 100 interviews with advertisers, streamers and agencies — and supported by extensive bottom-up market modeling and quantitative consumer research.”
Ampere’s study said that on global average, one-sixth of video advertising budgets are currently being allocated to addressable TV, but that number is closer to one-fifth in “mature” markets like the U.S.
Ampere says that for younger audiences, addressable is broadly delivering a 25% incremental boost in reach over broadcast TV.
“This research illustrates the inherent potential of addressable TV as a powerful tool for targeted communication with previously hard-to-reach audience segments,“ Kristian Claxton, managing partner, innovation and strategy at Finecast, GroupM Nexus’ addressable unit, said. “The seamless integration of such capabilities with the storytelling possibilities and brand protection mechanisms inherent in broadcast TV is well demonstrated.”
The fascinating piece of the research for us is the enduring aspect of linear channels in the farther reaches of the globe. Even as addressable TV expands in girth and revenue share, linear TV advertising will remain largely flat, at least in the near future.
