Advertisers favor CTV purchases over streaming start-ups with established media outlets

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As millions of U.S. households directly connect their TVs to the internet, marketers are looking for ways of reaching customers who spend more time streaming content directly from the internet platform or watching via a CTV service as overall video consumption remains strong. Approximately half (52%) of video advertisers are planning to boost their video spending this year, while the rest will keep it at the same level. About three quarters (77 percent) of the advertisers that will boost spending said their video ad budgets are increasing rapidly than for other media channels. In November and December, Advertiser Perceptions surveyed 284 advertisers and agencies and asked 300 advertisers in January about their upfront purchasing plans.

Elevated fragmentation in consumer viewing opportunities, however, is causing concerns for some advertisers who want media partners that they can trust, such as CTV services from established networks, amid online fraud concerns. The finding shows that advertisers and media agencies want the ability to allocate their spending between linear TV and digital video channels as viewers are looking for their favourite programming among several media outlet choices.

At the same moment, advertisers want CTV to offer some of the same customization features that online video offers. The survey found that seventy-five percent of advertisers want to study more about how media companies organize to balance growing reach with personalization and cross-screen measurement innovation.

“Big TV networks have beefed up their CTV opportunities at the right time,” Justin Fromm, Advertiser Perceptions’ executive vice president of business intelligence, said in a comment. “They’re becoming safe harbours for the largest advertisers as fraud climbs in the medium. While the major internet platforms will lead in the volume of streaming ads, TV network safety is keeping them the gold standard in the video as the platforms evolve.”

While linear TV viewership has dropped as streaming has become more common, 51% of advertisers said that their top priority is linear TV, compared to 16% for social media and 15% for video sites. Advertisers who spend $25 million or more a year prefer linear TV, while social media and video sites are described as more efficient by marketers who spend less. That finding is consistent with the strategy of social media companies such as Facebook to provide more directed targeting by region, demographic group, or personal interests for smaller businesses.

The Advertiser Perceptions survey comes amid the CTV advertising landscape’s increased consolidation. This month, Magnite agreed to buy rival SpotX for $1.17 billion in cash and stock, establishing the programmatic marketplace’s largest independent CTV and video advertising platform. Last month, ISpot.tv attained Ace Metrix in a deal that integrates providers of complementary TV advertising measurement services.

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