Targeted TV ads present a $100+ billion opportunity

Nvidia Founder, President and CEO Jen-Hsun Huang delivers a keynote address at CES 2017 at The Venetian Las Vegas on January 4, 2017 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs from January 5-8 and is expected to feature 3,800 exhibitors showing off their latest products and services to more than 165,000 attendeesEthan Miller/Getty ImagesImproved targeting on linear TV could draw viewers away from online video services.

Programmatic TV platforms are a$100 billion opportunity, according to a note from investment bank Credit Suisse.

The investment bank estimates US TV advertising revenues will accelerate from 2% growth in 2014-2016 to between 5% and 7% per year in 2017-2030.

In April, broadcasters Fox, Turner, and Viacom partnered to launch OpenAP, an audience targeting solution working across all three broadcasters in a bid to compete with the digital advertising ecosystems dominated by Google and Facebook.

The new platform allows advertisers to use their own first-party data and cross it with third party data to improve targetting.

Instead of using demographics, such as “men aged 18-35,” the platform will be able to focus on behaviours and can say whether people have a car lease that’s expiring or are heavy detergent consumers.

Improved targetting would allow broadcasters to reduce the time consumers are shown ads while watching TV.

In the note Credit Suisse said: “This highlights the scope for targeted linear TV advertising to win share of marketing spend, but also to substantially improve the user experience and potentially also win back share of viewing from non-ad funded SVOD platforms like Netflix and Amazon.”

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