TV advertising never played a big role in TV operators’ strategy. Until now.
As television moves further into the digital age, the role of TV operators is changing. No longer just distributors of content, operators now have the chance to become powerful players in the advertising space. With access to vast amounts of viewer data and owned inventory, operators are in a strong position to unlock new revenue streams through addressable TV advertising.
Addressable TV allows advertisers to reach specific audiences, making ad delivery smarter and more effective. For TV operators, this represents a major business opportunity—one that aligns naturally with the shift toward personalization, data-driven decision-making, and multi-platform viewing.
Unlock New Revenue from Live and On-Demand Content
Addressable advertising enables the delivery of different ads to different households during the same program, based on factors like location, interests, age group, and viewing behavior. This makes advertising more relevant to the viewer and more valuable to the advertiser.
According to Insider Intelligence, U.S. addressable TV ad spending is expected to exceed $4 billion by 2025 (source). For operators, this opens up a high-growth segment previously dominated by broadcasters and digital platforms. As the owners of the inventory, operators can now take part in this growing market—either by selling ad space directly or partnering with ad tech platforms.
Easy Integration with Existing TV and VOD Services
Addressable TV doesn’t require a complete rebuild of your systems. It integrates with current linear TV and VOD infrastructure, making adoption smooth and scalable. This allows you to enhance the viewer experience without disrupting the service your customers are used to.
Seamless integration also helps maintain consistency across all screens—whether viewers are watching on a smart TV, tablet, or mobile device. You can manage ad delivery centrally while maintaining a high-quality user experience.
Use Data to Upsell, Cross-Sell, and Personalize Offers
Most TV operators today offer bundled services—TV, internet, mobile, and sometimes fixed-line telephony. This creates an opportunity to use CRM data for much more than account management. You can build detailed profiles of your customers and target them with tailored offers.
For example, promote faster broadband to heavy streamers, or offer mobile upgrades to customers near the end of their contract. Personalized campaigns lead to higher conversion rates, better engagement, and stronger customer retention.
This approach turns advertising into a tool not only for external revenue but also for internal growth.
Make Content Discovery Easier—and More Engaging
Finding something to watch is often a frustrating experience for viewers. With addressable TV, you can recommend content based on what each viewer likes, making content discovery more efficient and enjoyable.
This doesn’t just improve user satisfaction—it increases the time spent on your platform, boosts loyalty, and creates additional ad exposure. Content promotion, when personalized, becomes part of the viewing journey rather than a distraction.
With addressable TV, operators can help solve this by enabling pre-roll ads or dynamic ad replacement during playback. These ad formats can’t be skipped and are tailored to each household. This not only protects ad revenue—it also strengthens relationships with broadcasters looking to maintain the value of their ad slots.
Embrace AVOD and FAST Models
As subscription fatigue grows, many viewers are turning to free, ad-supported options. Two models are leading this shift: AVOD (Ad-supported Video on Demand) and FAST (Free Ad-supported Streaming TV).
AVOD allows users to watch on-demand content for free, with ads.
FAST offers scheduled programming similar to traditional TV, but delivered via streaming.
Both models are seeing fast global growth. Omdia estimates that AVOD alone will generate $70 billion in revenue by 2027 (source). For TV operators, adding AVOD or FAST channels means reaching more users while keeping costs low—and building a sustainable ad revenue model.
Final Thoughts
The television industry is evolving—and so is the role of the TV operator. What was once seen as a utility service is now a gateway to targeted marketing, personalized content, and advanced advertising models. Operators have the tools, the data, and the customer relationships. Now, they also have the opportunity.
This is where Castoola comes in. We provide fully managed addressable TV solutions that support operators, broadcasters, and OTT platforms in making the most of their ad inventory. Our technology and services make it easy to launch, manage, and grow your addressable TV strategy—while delivering a better viewing experience to your audience.
