Go Addressable unveils research on addressable TV's Impact on Young Adults
New study reveals 80% of adults 18-34 watch both linear and streaming TV, highlighting addressable TV's importance.
Go Addressable, a trade organization dedicated to advancing addressable TV advertising, released new research findings that shed light on the viewing habits of adults aged 18-34 and the growing importance of addressable TV advertising in the face of signal loss and evolving audience behaviors. The announcement, made in New York, also included news of AMC Networks joining the organization, further solidifying the industry's commitment to addressable advertising.
Addressable TV advertising, a technology that allows advertisers to serve targeted ads to specific households or users based on deterministic identifiers, has become increasingly crucial as the media landscape continues to fragment. The research, conducted in partnership with MRI-Simmons, revealed that contrary to popular belief, young adults are not abandoning traditional linear television entirely. In fact, 80% of adults aged 18-34 watch both linear and streaming TV, highlighting the need for advertisers to adopt strategies that span multiple platforms.
This finding challenges the notion that younger viewers have completely shifted to streaming services. It underscores the potential of addressable TV advertising as a tool to reach this valuable demographic across various viewing environments. The ability to target specific households or users allows advertisers to deliver more relevant content, potentially increasing the effectiveness of their campaigns.
Go Addressable's research also delved into the impact of ongoing changes in the digital advertising landscape, particularly the impending deprecation of third-party cookies. In a separate study conducted with Advertiser Perceptions, it was found that 65% of advertisers agreed they would be more likely to consider addressable TV as a key component of their media mix to overcome challenges related to cookie deprecation. This statistic underscores the growing recognition of addressable TV's potential as a solution to identity-related advertising challenges.
The importance of first-party data in the evolving advertising ecosystem was also highlighted in the research. According to the findings, half of the advertisers surveyed reported using a data service to provide identified first-party audiences in the past year. This trend indicates a shift towards more privacy-compliant and reliable data sources for targeting and measurement.
Larry Allen, Board Chair of Go Addressable and VP & GM of Data and Addressable Enablement at Comcast Advertising, emphasized the significance of these findings in light of recent industry developments. He noted that while Google's recent announcement to delay the deprecation of third-party cookies has caused some uncertainty, the loss of cookies and identifiers remains a critical concern for advertisers. Allen highlighted addressable TV's ability to serve relevant ads to authenticated audiences across U.S. households, offering a more cost-effective and privacy-respecting alternative to traditional targeting methods.
The research also provided insights into the viewing habits of adults aged 18-34 within the Go Addressable footprint, which includes households serviced by Altice, Comcast, Charter, Dish, DirecTV, and Paramount. These young adults were found to be 25% more likely to watch live TV compared to those outside the Go Addressable footprint. Additionally, 53% of their time spent viewing premium video content occurs on a TV screen, emphasizing the continued relevance of the traditional "big screen" experience.
Go Addressable's announcement coincided with the news of AMC Networks joining the organization. AMC Networks, known for its leadership in addressable advertising deployment, became a member in April 2024. This addition, along with Paramount's joining in 2023, has expanded Go Addressable's roster of content and programming distributor members, further demonstrating the industry's recognition of addressable TV's potential.
Marisa Simon, SVP of Linear & Addressable Operations at AMC Networks, expressed enthusiasm about joining Go Addressable. She highlighted AMC's longstanding leadership in the addressable space, noting that they now offer fully addressable spots in every hour of programming across all of their linear networks. Simon emphasized the value of advanced, privacy-compliant targeting for advertisers seeking to reach audiences across fragmented viewing environments.
The research and industry developments come at a time when the advertising industry is grappling with significant changes. The ongoing shift in viewing habits, coupled with increasing privacy concerns and regulatory pressures, has led advertisers to seek more effective and compliant ways to reach their target audiences. Addressable TV advertising appears to be positioning itself as a solution that can bridge the gap between traditional linear TV and digital streaming platforms.
However, challenges remain in the widespread adoption of addressable TV advertising. These include technical hurdles in implementing addressable capabilities across diverse TV ecosystems, standardization of measurement and reporting, and educating advertisers on the benefits and best practices of addressable campaigns.
Go Addressable's mission to accelerate the advancement of addressable TV advertising focuses on three key areas: advocacy and education within the industry, problem-solving around industry challenges, and facilitating the use of addressable advertising campaigns for buyers and sellers of TV inventory. The organization's efforts aim to create a more cohesive and effective addressable TV landscape that benefits both advertisers and programmers.
As the media landscape continues to evolve, the findings from Go Addressable's research provide valuable insights for advertisers, broadcasters, and technology providers. The data suggests that a multi-platform approach, leveraging the strengths of both traditional linear TV and streaming services, may be the most effective strategy for reaching younger audiences. Moreover, the growing interest in addressable TV as a solution to identity and targeting challenges indicates that this technology is likely to play an increasingly important role in the future of television advertising.
Key Facts
80% of adults aged 18-34 watch both linear and streaming TV
65% of advertisers are more likely to consider addressable TV due to cookie deprecation
50% of advertisers have used a data service for first-party audiences in the past year
Adults 18-34 in the Go Addressable footprint are 25% more likely to watch live TV
53% of premium video content viewing by young adults occurs on a TV screen
AMC Networks joined Go Addressable in April 2024