Marketers Making the Switch from Linear to Connected TV Faster than Agencies

December 17, 2021
AdPerceptions TV Ad Behaviors Marketers v Agencies Dec2021

More than 8 in 10 (82% of) US households have at least one connected TV (CTV) device, and advertisers are seeing the viability of CTV advertising. According to data from Advertiser Perceptions, 90% of video advertisers are running CTV ads, with these respondents averaging $33 million in spend per year.

Spending is anticipated to increase next year, with 56% of the more than 300 advertisers surveyed saying they expect their CTV advertising spending to grow in the next 12 months. These marketers plan to dedicate one-third of their video spending to CTV. Even beyond next year, other research shows that spending on CTV advertising will only continue to grow.

It does appear that agencies are a bit behind marketers getting on board with CTV. They are more likely than marketers to have purchased linear TV advertising in the past 12 months (74% of agencies vs. 58% of marketers). Marketers (41%) are also more likely than agencies (25%) to believe that TV is more important than digital video. As Advertiser Perceptions puts it, “agencies have roots in linear TV,” while “marketers are more likely to be digital-first.”

Although a majority of brands and agencies alike are drawing their CTV budgets from linear TV, agencies (43%) are more likely than marketers (24%) to do so, per this data. However, on a whole, survey respondents are mostly drawing CTV advertising funding from digital video budgets (64%; top 3 ranked) and general advertising budgets (47%).

Advertisers plan to buy more CTV ads from advertising video-on-demand (AVOD) platforms in the coming year. At present only about two-thirds (64%) are buying from AVOD platforms. Yet, next year, 71% expect to buy from these platforms, while 70% will buy from device manufacturers and 62% from vMVPDs.

Additionally, 9 in 10 (92% of) respondents say they have purchased CTV ads programmatically in the past year. These respondents have reported several benefits including better pricing, easier optimization, and a greater ease in achieving scale. Many also consider the ability to activate video campaigns from a single platform as one of the benefits of buying CTV inventory programmatically.

Nevertheless, they are also running into barriers when purchasing programmatically. Most cite a lack of transparency concerning which publishers air their ads, less control over the ad buy, brand safety and lack of transparency of ad tech fees.

Read more here.

About the Data: Findings are based on a May survey of 306 advertisers (50% marketers, 50% agency).

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