• by Wayne Friedman , January 14, 2025

Performance-focused TV deals are still on the rise, and the number of brands that plan to increase budgets has more than doubled compared to a year ago.

A survey from tvScientific, a connected TV (CTV) ad-technology platform, finds that 71% of brand executives say they will raise performance-linked TV ad budgets -- double the number versus 35% a year ago.

In terms of the specific media buys, research says these business outcome-performance budgets -- when looking at the dollar level -- are expected to increase 41% on average over previous deals.

Where is the money coming from? Social media, according to 53% of respondents.

“This is a massive statement,” say the authors of the study. “Budgets being pulled from other conversion-based channels indicates that performance TV is having a measurable impact, on the bottom line.”

The study reveals that 58% of marketers say the social-media business-outcome marketplace is becoming crowded and that it's difficult to stand out from the crowd.

Another 49% say the new performance TV money is coming from new media investment, while 35% say it comes from search or display budgets and 26% say it comes from linear TV.

The most important of all key performance metric indicators (KPIs) is conversions at 23% -- followed by reach/frequency at 19% and engagement and impressions, at 17% each.

While many tout the strong prospects of "performance TV" ad deals, many issues remain -- including high costs, difficulty in targeting audiences, and the risk of fraudulent results, according to media executives.