Data-enabled TV advertising is set to see significant growth in the next year – and is already becoming more widespread. A recent survey [download page] of more than 150 television advertisers and marketers by Blockgraph (a division of FreeWheel) reveals that 29% of respondents’ total TV advertising (linear, VOD, TV Everywhere) is currently data-enabled, with respondents saying 40% will be by next year.
At the same time, audience-based advertising is also on the rise, with about one-third (32%) of current total TV advertising being audience-based. By next year, the advertisers surveyed expect that 40% of TV advertising will be audience-based.
For the purpose of the survey, Blockgraph defines data-enabled TV as “leveraging data to improve media planning, targeting and/or analyze attribution and return on investment,” while it defines audience-based TV as “buying granular audiences and users beyond basic demographics in, of or in addition to content.”
The growth of data-enabled and audience-based advertising is undeniable. However, there are challenges, especially when it comes to data privacy. In fact, 79% of respondents agreed that protecting consumer privacy is a top focus for their company, while 84% said it would be a top focus for their company in 2020.
A recent survey of advertisers by Audience Perception found that only 24% of respondents rated advertisers/marketers positively (6 or 7 out of a 7-point scale) when it came to balancing consumer data privacy with highly targeted advertising. Attitudes towards media companies’ ability to hit the right balance were more negative.
This latest study indicates that 42% of respondents rank data privacy concerns as one of the top barriers preventing their company from using data to build audience segments for TV advertising. Additionally, two-thirds (67%) of the respondents cited consumer privacy protections as a concern when sharing data with media partners. They also were concerned about transparency in how their data was being used (64%) and with data leakage and breaches (54%) when sharing data with their media partners.
To read more, download the report here.
About the data: More than 150 advertisers were surveyed on the challenges, opportunities and importance of bringing advanced data to television advertising.