Wednesday, June 24, 2020, 2:19 PM ET|Posted by Will Richmond
In conjunction with this week’s NewFronts, IAB has released new survey results, again demonstrating the power of connected TV (CTV). According to the survey, conducted by Advertiser Perceptions, for ad buyers planning increased spending on CTV in 2020, in a multiple response question format, 53% said those additional funds would come from a shift from broadcast TV and 52% from cable TV (53% also said funds would come from an overall expansion of budgets).
The survey did not break out what percentage of ad buyers said they planned to increase CTV spending in 2020, but just last week IAB released a separate survey in which 59% of ad buyers said they planned to do so in the second half of 2020.
The survey found that estimated average CTV spending per advertiser in 2020 is $16 million, up 8% from $14.8 million in 2019 and up 37% from $11.7 million in 2018. The $16 million per advertiser estimate is nearly flat compared to $16.3 million that IAB estimated in a pre-Covid survey in February.
Retail is estimated to have the highest spending on CTV per advertiser at $32.2 million, followed by media/entertainment at $31.9 million and telecom with $20.6 million.
Targetability was the most cited benefit of CTV advertising (75%), followed by engagement/attention (57%), measurability (52%) and incremental reach (47%).
The survey included 350 interviews, with 43% at agencies and 57% at brands. The full results are available for download here.