CTV Set for Increased Share of US Video Ad Spend, with Cookie Deprecation A Driver

May 24, 2022

Connected TV (CTV) ad spend grew faster than social video and other online video last year and will do so again this year, according to a new IAB study produced in partnership with Standard Media Index (SMI) and Advertiser Perceptions.

That’s quite a feat, considering the rapid growth in digital video ad spending. However, CTV’s share of ad spend still trails its share of video time, per the report. Citing eMarketer data, the study notes that CTV will account for 36% of total time spent with linear TV and CTV combined this year. However, linear TV will command more than 3 times as much spend as CTV this year, according to an analysis that includes SMI Insights and an accompanying Advertiser Perceptions survey.

Nonetheless, CTV is expected to occupy 18% share of total video ad spending this year, compared to 25% share for all other digital video and 57% share for linear TV. The CTV share of 18% would represent another step up, from 15% last year and 11% the year prior. So while linear TV enjoyed more than 6 times as much ad spend in 2020, that discrepancy will be roughly halved this year.

One factor in CTV’s growth is the deprecation of third-party cookies. In its survey of more than 400 marketers and advertisers involved in digital video ad spending, Advertiser Perceptions found that the deprecation of third-party cookies and mobile ad IDs will lead to a net positive investment in CTV. Specifically, when looking at the percentage of respondents who plan to spend more as a result and subtracting the share who plan to spend less, the result was a net positive “optimism” of 19% points. By comparison, net optimism for linear TV was -4%.

This is further elucidated when examining the data types used for CTV targeting. The most widely used are first-party data (brand: 65%), with first-party data (publisher: 60%) the third-most used.

Among those who plan to spend more on CTV due to cookie deprecation, the largest portion will source those increased funds by shifting them away from linear TV, with 73% planning to do so.

About the Data: The Advertiser Perceptions survey was fielded among 406 brand marketers and agency executives involved in recommending, specifying, or approving ad spending in digital video, with an ad spend of at least $1 million in 2021.

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