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Xandr Video Ad Spending Hikes by Inventory Type Oct2021

Although advertisers still put a lot of stock in linear TV, one drawback is that the ability to truly target audiences is limited. With data-driven linear TV, advertisers are able to reach target audiences more precisely. As such, about 6 in 10 (58% of) US video ad buyers surveyed by Xandr and Advertiser Perceptions say they will increase their spend on data-driven linear TV over the next 12 months. 

So, what is the difference between traditional linear TV advertising and data-driven linear TV advertising? The key is the data. With traditional linear TV ads, households viewing the same show on broadcast or cable TV will all see the same ads. By comparison, with data-driven linear TV, although households watching the same TV show will see the same ads, “advertising is placed in TV shows based on viewership propensity concentrated towards specific advanced consumer data sets” – essentially using more advanced data types than simply demo-based delivery.

Data-driven linear TV is not the only inventory type that will see increased spending over the next year. Some 53% expect to increase their investment in OTT/CTV, while half say their spend on addressable linear TV will increase. In the meantime, only about 3 in 10 (28%) plan to increase spending on traditional linear TV inventory. 

The report suggests that there are added benefits to buying data-driven linear in an automated fashion. The top benefit cited by 43% of US respondents is the ability to define campaign parameters once and view a single proposal across media owners, including forecasted audience impressions and deduplicated reach. Other top benefits include the ability to activate one TV campaign across multiple media owners (36%) and being able to define target audiences across media owners (35%). 

Along those lines, a report from FreeWheel shows that about one-quarter of total premium digital ad views in the first half of 2021 were programmatic. That same report also shows that 60% of ad premium digital views were on CTV. Per this recent survey, US ad buyers consider easier campaign targeting and optimization (43%) and better pricing (36%) to be the top benefits to buying OTT/CTV programmatically. 

And, when it comes to viewer responses to ads they see on CTV, research from last year shows that viewers respond positively to these ads. Many say they see ads for products they are interested in, while some considered making a purchase because of an ad they viewed. 

Read more here.

About the Data: Findings are based on a survey of 200 US ad buyers actively working with over-the-top (OTT/connected TV (CTV) or linear TV, split among agencies (51%) and marketers (49%).

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