Addressable TV is growing fast because it finally solves the “old TV problem” with new digital expectations – brands want TV-scale reach and digital-style targeting, measurement, and optimization – without wasting spend on the wrong households.
Recently the market forces behind that shift have accelerated, especially as Connected TV (CTV) becomes a bigger share of video viewing and ad budgets. For example, industry forecasts continue to show strong CTV growth, and research from IAB points to digital video taking a much larger share of total TV/video ad spend while CTV returns to double-digit growth.
Below are the biggest reasons.
1) Viewers moved to streaming, and streaming moved to ads
The key driver is simple: audiences shifted from linear TV to streaming, and streaming services increasingly offer ad-supported tiers. This expands “TV-like” inventory that can be bought with modern targeting.
The result: more supply, more competition, more innovation, and faster adoption by agencies and brands – because the inventory is now where the attention is.
2) Advertisers demand less waste and more control
Traditional TV buying often means paying to reach everyone watching a program – even if only a small portion matches the target audience.
Addressable TV flips this: advertisers can buy impressions against specific audience criteria (household, geo-specific, interest signal, purchase intent , etc.).
3) Measurement is catching up to what buyers expect
Modern buyers want answers like:
- Who did we reach (unique reach)?
- How many times (frequency)?
- Did they watch (completion)?
- Did it drive outcomes (conversion)?
IAB’s research highlights how buyers increasingly focus on business outcomes and KPI-based measurement in digital video investments. IAB
Addressable TV fits that mindset because it is built to support:
- frequency caps
- audience segment reporting
- incrementality testing (where possible)
- and better attribution models than linear-only
4) Programmatic pipes made TV buying digital
Addressable TV grows faster when it is easy to buy.
Programmatic (PMPs, Deal ID Targeting, DSP activation, automated pacing / ads optimization) removes friction:
- Buyers can activate the same campaign across many publishers.
- They can compare CPMs, reach, and outcomes.
- They can shift spend mid-flight based on performance.
This is also why CTV = digital video has become the internal budgeting language at many agencies.
5) First-party data is becoming the fuel (privacy changes are the engine)
As the industry becomes more privacy-conscious, advertisers lean harder into first-party data and consented signals. Streaming publishers often have a login, device graph, or household-level viewing context – making their inventory extremely valuable for targeting and measurement.
In other words: privacy changes did not kill targeting – they changed who can do it well.
6) The ad experience is improving (and brands pay more for better experiences)
Addressable TV is not just “a targeted TV spot”. It is also about new, premium formats that perform:
- QR overlays on screen
- Shoppable prompts e.g., L-shape ad display
- TV Masthead
- Pause ads
- Interactive ad units
- Sequential storytelling (show brand A, then B, then C based on exposure)
Publishers can package these as sponsorships or high-impact placements, while still keeping addressability.
7) Re-aggregation and cross-streaming solutions reduce fragmentation
One historical barrier: CTV is fragmented across many apps and platforms. But the market is actively building ways to simplify planning and buying (bundling, ad platforms that combine supply, etc.), which makes addressable scale easier for advertisers. Deloitte
As fragmentation becomes “manageable”, more budgets move in.
What this means for CTV/OTT publishers (a practical lens)
If you are running (or advising) an OTT/CTV business, addressable TV growth is a publisher opportunity if you operationalize 5 basics:
- Clean inventory + stable ad pods (even if breaks are dynamic)
- A strong ad decision layer (Ad Server / CSAI strategy, demand diversity)
- Audience foundations (taxonomy, segment governance, privacy/consent)
- Measurement credibility (clear reporting, transparency, brand safety posture)
- Packaging (sponsorship + programmatic PMPs, not one or the other)
Done well, you capture both: premium branding budgets and performance budgets.