• by Wayne Friedman , Staff Writer, February 15, 2024

A third of advertisers now consider addressable TV advertising a “must buy” -- up from 22% a year ago, according to DirecTV.

In its annual report on addressable advertising, it says improved return on investment is key. In particular, 92% say their addressable investments improved their ability to “segment audiences.”

DirecTV's results came from two surveys. The first was conducted with 350 agency and brand executives from Oct. 17 to. 22, 2022. The second was conducted with 250 executives from Sept. 21-Oct. 4, 2023.

This includes a key integration between connected TV (CTV) and linear TV.

DirecTV says 90% of CTV and linear TV media-buying teams collaborate, and 73% say there is satisfaction in making addressable TV deals to extend linear TV reach.
Linear TV reach has seen significant declines in recent years.

Most importantly for addressable TV sellers -- including DirecTV -- the report says that 90% of addressable buying going through legacy and virtual pay TV distributors is planned to retain or increase spending this year.

Analysts still point out that it is generally considered addressable and is more expensive than traditional linear TV advertising due to its advanced targeting capabilities. But regular buyers say that investment (ROI) is worth it.

Analysts say an addressable ad unit can be three to five times higher than linear [inventory].

There is still little addressable ad inventory available overall -- roughly two minutes per hour depending on the cable, satellite, or telco pay TV distribution.