Roadblocks Remain In Shifting Legacy TV Ad Dollars To CTV-OTT Options

New data-driven TV and digital TV advertising is expected to see soaring growth of 45% to near 60% in the U.S. over the next 12 months, according to a new study from Xandr, AT&T’s advanced advertising unit. The research also says traditional advertising is expected to increase 28%.

The company’s analysis says there are still “roadblocks” to advertisers moving media dollars to new CTV/OTT, digital, addressable and “data-driven linear TV.

These include “a lack of understanding” among internal and external clients; “breaking through existing organizational silos,” and “stakeholders caught up in category thinking.”

Even then, Xandr’s research -- coming from 200 U.S. media executives from junior to senior positions -- see a strong upsurge in new video advertising platforms.



The research says participants estimate a 58% increase in data-driven linear TV spending over the next 12 months in the U.S.; a 53% hike in OTT/CTV spend; a 50% increase in addressable linear TV; and 45% growth in other digital video.

The research also shows reticence to programmatic buys.

“Though almost every advertiser in this study saw benefits to automating OTT buys, only about half of OTT/CTV budgets across key regions are allocated to programmatic buys,” according to study authors. The global study also surveyed respondents in other countries: Australia, UK, France and Germany

Respondents, who cited challenges “like limited scale or poor ROI,” talked up building and growing direct relationships with publishers.

But the Xandr study authors countered there was “easier targeting and optimization, better pricing, and unified campaign activation across multiple sellers are among the top programmatic OTT benefits touted around the globe, compared to direct sold OTT.”

1 comment about "Roadblocks Remain In Shifting Legacy TV Ad Dollars To CTV-OTT Options".
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  1. Ed Papazian from Media Dynamics Inc, September 29, 2021 at 9:26 a.m.

    Wayne, it's not surprising that this study and the interpretation by its sponsor is so favorable to OTT/CTV in contrast to "legacy TV"---otherwise its findings would never have seen the light of day. Interestingly, aside from the implied old fashioned stupidity of advertisers who are "resisting", they did note a perfectably  understandable" reticence" to programmatic buys as well as the lack of scale as negatives. There are more problems,one of which is the attempt by many OTT/CTV ad sellers to make buying time on their "platforms" a "digital" type of buy---handled by digital specialists at the agencies---not the  usual "legacy"  planners and time buyers. That's a big problem as well as a mistake as many of the digital buying methods do not apply to branding advertisers who contribute the vast majority of "linear TV" ad spend. I'm not  referring only to the "audience" definition and measurement roadblocks but also the ways that ad messages are scheduled as well as the lack of suitable program environments which advertisers want to be associated with. As for fraud, that's another of the reason buyers want to deal direct with the sellers.

    If OTT/CTV ad sellers want to get more "legacy TV" ad dollars they should try to work with the media planners and time buyers who are involved with "legacy TV"---not only the specialists---and adopt the many sensible ways that "legacy TV" is planned and time is bought so dealing with them is not so  much like dealing with an alien species. This is essential if OTT/CTV are to become one more basic "TV" option along with "legacy TV" and be planned and bought within that context---not as a specialist add-on.

    I think that there is much to commend OTT/CTV for many advertisers---in conjunction with traditional TV usage---- but to make that work OTT/CTV needs to come in out of the cold and join the party in terms of metrics, the ways buys are made, targeting approaches, etc. instead of being so different.

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