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.

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