New Research Suggests Advanced TV Is Now Fastest Growing TV Ad Sector
Nearly 2/3 of advertisers and agencies believe that more than half of all TV buying will be programmatic within 3-5 years
NEW YORK, April 19, 2017 /PRNewswire/ -- Videology— a leading software provider for converged TV and video advertising – today announced the findings of a commissioned study conducted by Advertiser Perceptions on behalf of Videology on the topic of Advanced TV.
The study was designed to evaluate advertiser and agency attitudes and behaviors toward Advanced TV advertising, also known as programmatic TV advertising. For the purposes of this survey, Advanced TV was defined as both high-indexing linear TV that uses advanced data to define a strategic consumer target (known as data-enabled TV), as well as TV advertising delivered at the household level (known as addressable TV.)
The results reveal that most advertisers and agencies are already embracing Advanced TV as an advertising medium, with many more expecting it to grow in the coming years. In fact, most respondents (64%) expect that within 3-5 years, more than half of total TV buying will be programmatic. Additionally, among those currently spending in Advanced TV, 57% say they plan to increase their data-enabled TV budgets this year.
According to the survey, Advanced TV is the fastest growing among TV advertising types, with the same percentage of respondents planning to use Advanced TV next year as those who plan to use traditional TV advertising:
- 57% say they have used Advanced TV advertising in the past 12 months, while 75% say they plan to in the next 12 months
- 88% say they have used linear TV advertising in the past 12 months, with 77% saying they plan to in the next 12 months
"Advertisers and agencies are rapidly seeing the benefit of applying data and automation to their linear TV buys because it gives them the best of both worlds: the reach and viewing experience of TV, with the strategic targeting of digital," says Scott Ferber, Founder and CEO, Videology.
"While this survey focused on the demand side, we are seeing similar enthusiasm from media companies who see data-enablement as a way of capturing greater value from their audiences, both in TV and across devices. With buyers and sellers both recognizing the value in more addressable, audience-based advertising, the marketplace can now truly accelerate," added Ferber.
The survey also showed when it comes to planning and buying video advertising, holistic thinking across TV and video is becoming the norm:
- Today, 31% of TV/video campaigns are planned holistically, and respondents predict that by 2018, this number will jump to 44%
- Among advertisers and agencies who buy both TV and video, 61% say the TV/video buying is done under one integrated team
- 55% say they prefer to learn about both digital and TV opportunities at the same "Upfront" events (i.e., the lines between traditional Upfronts and NewFronts continue to blur)
"Advanced TV in all its forms is growing, and it's shifting the way advertisers and agencies do business. I expect these changes to continue to grow at a rapid pace, including shifts in this year's Upfronts," said Andy Sippel, SVP, Consulting, Advertiser Perceptions.
Despite the unmistakable growth suggested by this survey, it was also clear there is still education needed surrounding Advanced TV:
- More than half (57%) of advertisers and agencies say they do not understand the difference between data-enabled TV and addressable TV
- 20% say that Advanced TV advertising is still funded primarily from a Test/Experimental budget
Survey participants included 156 decision-makers from US advertisers and agencies, including those involved in digital as well as traditional advertising channels. The full survey, including insights into what advertisers and agencies are looking for in an Advanced TV provider, is available for download at http://bit.ly/2ok904a.
About Videology
Videology is a leading software provider for converged TV and video advertising. By simplifying big data, we empower marketers and media companies to make smarter advertising decisions to fully harness the value of their audience across screens. Our math and science-based technology enables our customers to manage, measure and optimize digital video and TV advertising to achieve the best results in the converging media landscape.
Videology, Inc., is a privately-held, venture-backed company, whose investors include Catalyst Investors, Comcast Ventures, NEA, Pinnacle Ventures, and Valhalla Partners. Videology is headquartered in New York, NY, with key offices in Baltimore, Austin, Toronto, London, Paris, Madrid, Singapore, Sydney, Tokyo and sales teams across North America.
About Advertiser Perceptions
Advertiser Perceptions is the global leader in data-driven business intelligence for the advertising industry. Our insights, advice and guidance enable the world's leading media and ad tech companies, agencies, and marketers to thrive in today's complex and competitive advertising market.
For more information, contact Michele Skettino at [email protected].
SOURCE Videology
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