Dive Brief:
- TV, in all forms including connected TV, is newly considered the most valuable video format for achieving advertisers’ goals, leaving digital video in its wake, according to the results of a new survey that Advertiser Perceptions provided to Marketing Dive. Specifically, 47% rank TV as the most valuable for achieving their goals, up from 36% a year ago; and 46% put digital video first, down from 53% a year ago.
- While more advertisers expect to increase their presence on CTV/OTT this year, they will spend more money in linear TV. Two in five advertisers will increase their CTV/OTT ad spending by 16% on average. Meanwhile, one in four will add more linear TV ads, increasing spending an average of 19%.
- Advertisers are increasing their budgets to make room for more connected, digital and linear TV, including brand integrations. Half of U.S advertisers will put more money into video advertising this year, on average increasing 25%, with 75% of them boosting their overall budgets to accommodate the increase, according to the latest Video Advertising Convergence Report.
Dive Insight:
Video eclipses all other media in achieving advertising goals and, now, TV leads within video again.
Advertiser Perceptions’ findings jibe with those of Disney Ad Sales, whose 2021 survey found that while more than 75% of mostly younger viewers stream sports games and multitask on other devices, TV remains the leading viewing device.
“TV continues to be the dominant platform for consuming sports content across demos. However, screens themselves are tipping digital,” says that report’s authors.
Digital media player Roku is one brand looking to pull in more live TV viewers. It is adding a Live TV Zone in its on-screen navigation based on a recent streaming survey that shows 61% of users — without traditional pay TV — watch live news multiple times a week.
“The rising video tide is lifting all boats, just not equally,” John Bishop, vice president, business intelligence at Advertiser Perceptions, said in a statement. “Streaming is attracting priority attention as the medium adds content and audiences, while linear TV continues to get the highest dollar volume. As streaming grows in forms and value, we can expect to see more innovation and advertiser investment.”
Advertiser Perceptions found that advertisers put short-term professional video in the top three of all formats for meeting advertising KPIs. That was followed by full episodes, social media influencers videos, user-generated video and advertising in sporting events.
Driven by the growth in streaming, more than half of the surveyed advertisers expect to increase their programmatic video ad buys this year. The second half of 2021 showed major increases over the first half in programmatic buying on social media, video sites, mobile ad platforms and linear TV.
While CTV/OTT ad revenue continues to rise, ad executives are worried about key metrics, with 60% of those surveyed believing that when they buy CTV impressions, they’re losing sight of the reach, frequency and effectiveness of their campaign. Just 19% disagreed with that statement and 20% were neutral.
Within two years, half of advertisers expect brand integrations will be the only way to reach most long-form content viewers as ad-free streaming continues to gain.