CTV Will Command 36% Of Total Video Time Spent In 2022,18% Of Video Ad Dollars: IAB
- by Wayne Friedman , May 2, 2022
Although it will have a 36% share of total video time spent, connected TV (CTV) will take only 18% of total video ad dollars in 2022 and is estimated to reach $21.2 billion by year's end, per a
new Interactive Advertising Bureau video advertising report done in conjunction with Standard Media …2 comments about "CTV Will Command 36% Of Total Video Time Spent In 2022,18% Of Video Ad Dollars: IAB".
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I assume that the stat that CTV accounts for 36% of all "TV/Video" viewing came from one of the "alternative" viewing measurement sources---not Nielsen who is telling us that linear TV captures 70% of all "TV "viewing" time while streaming---including Netflix, Hulu, YouTube, Disney+, etc. gets 30%. . In any event advertisers don't allocate their ad spend based on time spent with the media---never have, never will. If they did, national ad dollars would surge in radio while dropping to almost zero for magazines and cable would easily outdraw broadcast TV---but it dosen't because of the way buyers have forced cable to price its audience.
I've been playing with the numbers as cited. Taking the eMarketer ad spend estimates for 2022 and adding $65 billion for linear TV you get exactly 18% of the total ad spend on what they refer to as "CTV"---which includes AVOD. However when you take the viewing time figures you get 3.0 hours for "linear TV" and 1.7 hours for "CTV", or a total of 4.7 hours---hence "CTV's share of 36%. But what about all of that money spent to advertise on "other social media" and online videos, which accounts for about 25% of the total ad dollars? Should we assume that no time is devoted to watching these videos? That doesn't seem right. If we give them, say, 1.2 hours a day in time spent, this reduces "CTV's" share of the total to a mere 29%. Golly, it's fun to play with numbers----isn't it?