Rising CTV Budgets Coming Not Just From Linear TV, Survey Finds
- by Wayne Friedman , July 14, 2022
Rising ad spending for TV and streaming is not just coming from linear TV, but also digital and social media, according to a new survey by Advertiser Perceptions and Premion, Tegna’s over-the-top (OTT) advertising-selling unit.
Research says 66% are shifting budgets from digital, social media and linear TV coffers to fund connected TV (CTV)/streaming spending. At the same time, another 30% coming from overall increase in advertising budgets.
Overall, linear TV is expected to take the biggest hit with 48% of its budgets affected by shifts to CTV.
Nineteen percent of digital video (non-CTV/OTT) will be affected, with display also at 19%, social media at 15%, and paid search at 11%.
Just over half (53%) of those polled in the survey said they will raise CTV/OTT advertising budgets this year versus 2021 -- with an average overall increase for this year at 22%. Forty-four percent say their CTV budgets will remain the same, while 3% say they will lower CTV advertising budgets.
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For example, just 16% of respondents said linear TV ad spending will rise an average 21%, with 63% saying their linear TV budgets will remain the same for 2022.
Research came from an anonymous March 2022 online survey among 151 ad agency or brand-side marketers. Connected TV and OTT advertising use was required for both 2021 and 2022, spending a minimum of $250,000 annually on advertising.
Very interesting, Wayne. However as regarding advertisers who usually buy time on "linear TV" it's going to be quite a while before 48% of their "linear" ad spend goes to streaming. For one thing, the number of GRPs available in streaming couldn't support such a move at present---or in the near future. For another, streaming's CPMs tend to be about the same ---or higher---than broadcast TV which means that cable---which accounts for most "linear TV viewing---is a far cheaper CPM option than streaming. How many advertisers will be willing to dump much their cable buys and pay double or triple per viewer via streaming?
Of course, a fair portion of ad dollars that might have gone to "linear TV" will migrate to streaming but this will be a measured process and will require the streaming sellers to operate more like their "linear"counterparts regarding audience data, how buys are negotiated and tracked, how ads are scheduled, etc. At present, most streaming time purchases are handled by digital "specialists" at the major agencies---not those who buy "linear TV" time. Until this gap is closed and the same people are involved with both forms of TV, streaming will be an add-on to "linear TV" for many advertisers. To really grow ad dollar-wise, streaming needs to be a top of mind consideration along with "linear"not an after thought or a specialists" operation.