Addressable TV did not suddenly become popular because advertisers changed their minds. It grew because viewers changed how they watch TV, and the streaming industry changed how it monetizes attention.

Over the last few years, streaming moved from mostly subscription to a hybrid model…ad-supported tiers, ad-light options, bundles, and price increases that push more households toward cheaper ad plans.

When more viewing happens inside ad-supported streaming, the industry naturally produces more addressable inventory – because streaming platforms can recognize a device, an app session, or even a logged-in household in a way traditional broadcast TV cannot.

Why ad-supported streaming creates addressable TV “by default”

A good real-world signal is how fast major platforms have scaled ad tiers. Netflix publicly reported its ad-supported tier reached 94 million users (May 2025), and said it accounted for 55% of new sign-ups in markets where it’s available. Reuters That is not just a Netflix story – it is a market behavior story: when viewers choose ad tiers, addressable supply expands.

Traditional linear TV was built on signals like:

• channel
• program schedule
• broad demographic panels
• approximate reach

Streaming is built on signals like:

• app + device ID
• session play-events (start, pause, completion)
• content metadata (genre, series, live TV vs. On-demand Video)
• household or login identity
• geography (often accurate at city or province, or postal-code level)

That means streaming inventory is naturally suited to:

• frequency management
• audience segmentation
• sequential messaging
• measurement frameworks closer to digital video

So even when a streaming platform sells “like-TV” the mechanics underneath behave more like digital.

The “price pressure” effect: why ad tiers keep growing

Streaming services have raised prices aggressively, and consumers respond by:

• downgrading to ad plans
• rotating subscriptions
• bundling (to reduce total cost)
• choosing “free-with-ads” experiences more often

This matters because every time a household downgrades from premium to ad-supported, the platform’s ad load capacity grows – and so does available reach for advertisers inside addressable environments.

Why advertisers love this shift

When ad-supported tiers grow, buyers gain:

1. More reach in premium content
2. More addressable reach (less waste than linear)
3. More measurable outcomes (especially when combined with first-party data)

IAB’s work shows digital video continues to take a bigger share of total TV / video ad spend and that CTV is back to strong growth – exactly the kind of environment that accelerates addressable TV adoption. IAB

A simple GAM example (beginner-friendly)

Let’s just say you are a CTV/OTT publisher using Google Ad Manager.

You can structure monetization like:

• Sponsorship / Direct:
  • Brand-x owns Live Sports Break #1
  • high CPM, premium guarantees
• PMP Deals (Programmatic):
  • Deal ID for “Sports Fans / Malaysia-geo / target CTV “
  • buyers activate via DSP
  • CPM controlled + private access
• Open Auction (AdX / via SSPs):
  • fills leftover impressions or remnant inventory
  • supports yield management

Now here is where ad-supported tiers supercharge you:

• more ad sessions = more ad requests
• more authenticated users = better audience segments
• more watch time = more completions and viewable events

Why this fuels “Addressable TV” specifically

CTV can exist without addressability (you can run generic ads to everyone). Addressable TV requires the ability to differentiate audiences and control exposure.

Ad-supported streaming expands exactly what addressability needs:

• stable device environments
• measurable playback signals
• scalable inventory across many content hours

What to do next (publisher playbook)

If you want your content to benefit from this demand shift:

1. Tag your inventory cleanly in GAM (content type, device type, live/VOD, genre).
2. Create 3–5 starter PMPs (broad but valuable):
   • CTV Premium
   • CTV Drama / Entertainment (Genre)
   • Sports / Live Events
   • High Completion VOD
3. Add audience layers gradually
4. Ensure your reporting can answer agency questions:
   • completion rate, reach, frequency, brand safety, device split.