Industry initiatives to boost awareness and understanding of addressable TV — a form of TV advertising where advertisers can target specific video ads to specific households during regularly scheduled TV programmes — can help drive substantial growth in the Asia-Pacific region.
While a new report by Ampere Analysis in partnership with GroupM Nexus’s addressable TV solution Finecast and Microsoft Advertising reported that the global addressable TV sector is now a US$56 billion industry, only one-eighth of APAC video advertising budgets are currently being spent on addressable TV.
According to the report, some brands in APAC markets remain unaware of the sheer reach of addressable, while others lack a full understanding of geographic and demographic targeting capabilities. By 2027, the global addressable TV sector is estimated to be worth US$87 billion.
One APAC market leading the way and offering valuable best-practice lessons is Australia, where a common ID system deployed across broadcaster video-on-demand (VoD) services allows brands to more easily plan cross-product campaigns.
With addressable TV able to address challenges such as service fragmentation and audience management, the report believes there is “immense potential” for APAC to overcome obstacles and emerge as a thriving and innovative market in the near future.
Richard Broughton, Executive Director at Ampere Analysis, said, “The extent to which addressable TV advertising is now being used by smaller advertisers and B2B brands is illustrative of how the medium can support TV service providers in their push to reach beyond traditional broadcast TV advertisers and to open up new entirely new revenue streams.
“But it’s clear that there is still work to be done by the industry in challenging entrenched opinions and in countering common misconceptions.”