Linear addressable TV ad spend in the U.S. 2015-2023

According to the most recent market calculations, U.S. advertisers spent roughly 2.14 billion U.S. dollars on addressable TV ads in 2020. They are further expected to increase their spending by some two billion dollars by the end of 2023.

What is addressable TV advertising?

Linear addressable TV advertising is a way of delivering selected ads to individual households via cable, satellite, and Internet Protocol TV (IPTV) delivery systems and set-top boxes. Unlike traditional TV commercials that are mainly displayed based on a program’s content, airtime, and a household’s geographical area, addressable ads enable marketers to target audiences much more effectively with the help of first-, second-, and third-party consumer data. A data-driven segmentation of households allows brands to tailor and deliver relevant marketing messages on a home-by-home basis, thereby boosting consumer awareness and sales figures alike.

TV advertising landscape in the U.S.

Even though investments in linear addressable TV advertising are ramping up, overall TV advertising spending in the U.S. is expected to plateau at just below 70 billion U.S. dollars in the following years. Television remains one of the most popular advertising mediums worldwide, but thanks to the ongoing proliferation of streaming services and other non-linear video entertainment formats, companies are no longer placing all their bets and ad dollars on traditional TV promotion. Meanwhile, the growing number of cord-cutting households in the U.S. also continues to challenge TV networks and advertisers more substantially each year.