Roadblocks Remain In Shifting Legacy TV Ad Dollars To CTV-OTT Options
- by Wayne Friedman , September 28, 2021
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 …
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.