Marketers plan to dramatically increase their budget commitments to Connected Television (CTV). In fact, 78 per cent of marketers surveyed plan to buy ad inventory on streaming TV within the next 12 months, according to a SteelHouse survey of both brand-side and agency marketing professionals, conducted by independent consulting firm Advertiser Perceptions.
While only 2 per cent of those surveyed said they never used video in their ads, 49 per cent use video frequently, 38 per cent use it occasionally, and 11 per cent use it in all campaigns. An average of 30 per cent of total advertising budgets are allocated to digital video across multiple channels, with 28 per cent of that going to social platforms, 26 per cent to in-stream, 20 per cent to traditional local or national TV, and 13 per cent to in-unit ads. But it was the newest category, CTV, also described as IPTV or OTT, that made the strongest impression, garnering 12 per cent of planned video spend.
“With more than 400,000 people cutting the cord from cable in favour of CTV every month, advertisers are having to rethink how to reach their audience,” said David U. Simon, CMO, SteelHouse. “CTV is a fully addressable, all digital channel that combines the storytelling power of traditional television with the targeting and accountability of digital media. This study reflects a market that is changing rapidly and we’re excited to be in a position to let our clients and partners leverage these insights through our technology.”
The survey also found video measurement is still evolving. The top three KPIs for evaluating video inventory were completion rates (49 per cent), impressions/reach (46 per cent), and quality scores including viewability & fraud (44 per cent). However, there were differences between marketers and agencies. Marketers identified impression/reach (48 per cent), completion (47 per cent), and click-through (44 per cent) as the most valued metrics, while agencies chose completion (53 per cent), quality scores (45 per cent), and in-target delivery/GRPs (comScore, Nielsen, etc.). Sales attribution was low for both (28 per cent).