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  • Research: Connected TV Ads Funded Equally From Linear TV and Online Video Budgets

    Ads inserted into programming consumed on connected TVs are being funded equally from linear TV and online video budgets, according to new research released by Videology. In a study the company commissioned Advertiser Perceptions to conduct, 31% of advertiser and agency respondents said their connected TV advertising dollars are coming from linear TV budgets, the exact same percentage that cited online video as the budget source.

    These 2 sources were followed by digital (not video specific), cited by 16%, test/experimental (13%) and integrated video budgets (9%).

    Regardless of the budget source, advertisers and agencies overwhelmingly believe that connected TV advertising is part of their online video strategy, with 51% of advertisers and 56% of agencies saying so. Conversely just 10% and 23%, respectively, see connected TVs as part of their linear TV plans.

    When asked about the primary advantages of connected TV advertising, the top answers, cited by 37% of respondents each were “It’s more targeted than linear TV” and “It allows me to reach the growing number of consumers watching connected TV.” These were followed by “It allows me to reach consumers holistically across screens” (24%) and “It brings interactivity to TV experience” (22%).

    Respondents were bullish on connected TV’s future as well, with 76% of respondents saying it will play a greater role in their advertising strategies this year.

    Their optimism is well-placed as nearly 70% of U.S. TV homes now have at least one connected TV, with three-quarters of them having multiple connected TVs, making them a fast-growing and now fully mainstream way to consume long-form video in the living room.

    While watching ad-free sources such as Netflix and Amazon are extremely popular, there are now also countless ad-supported apps for viewers to choose from, including skinny bundles chock full of ad-supported TV networks. These same networks also have their own apps available for authenticated TV Everywhere viewing by TV Everywhere subscribers using connected TVs.

    The research is included in Videology’s new Knowledge Lab report on connected TVs. As the report notes, connected TVs benefit from combining a classic TV lean-back experience with the targeting of digital advertising based on existing data sets that already drive lots of desktop and mobile experiences.  Videology’s Founder and CEO said that the company has seen a 500% growth in the number of connected TV campaigns in the past 2 years.

    The Knowledge Lab including the Advertiser Perceptions research is available here.

     
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