Author: Doug McPherson Source: Response Magazine
NEW YORK – A new survey of 300 ad agency executives shows they’re optimistic about the future of TV advertising, including both traditional linear TV and the emerging platforms that use advanced TV data to reach strategic audiences.
The survey, from advertising software company Videology, found that respondents continue to spend in traditional linear TV: 67 percent plan to maintain spending budgets from 2017, and 12 percent plan to increase spend on linear in 2018.
Nearly a third of respondents plan to increase their advertising spend on connected TV (CTV) in 2018, while 65 percent said they’ll maintain their current spend, which also suggests satisfaction with CTV performance. Only 6 percent planned to decrease their CTV spend in 2018.
One-quarter of those surveyed will increase their addressable TV spend, while 67 percent will keep addressable spending the same as 2017. Just more than 20 percent plan to increase their data-enabled TV spend, and 73 percent plan to maintain 2017 spend levels.
Still, 51 percent cited the need for consistent cross-screen measurement. Other problems noted include how to best leverage data, how to divide budgets among screens, transparency, and a lack of understanding about what’s plausible. Well over half of those surveyed said, that within in the next three years, TV will be measured by the same performance metrics as digital.
Scott Ferber, founder and CEO of Videology, said despite predictions about cord-cutters making linear TV advertising less relevant, the study suggest the opposite.
“Advertisers are not eliminating screens, but rather trying to find the best mix of screens and data strategies that allow them to leverage the best of each,” Feber said. “TV is still the ultimate channel for reach and awareness, and when TV advertising is brought to the next level with data and targeting, it’s unstoppable.”