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Marketers plan to dramatically increase their budget commitments to connected TV (CTV), according to the latest SteelHouse survey of both brand-side and agency marketing professionals.
The survey, conducted by independent consulting firm Advertiser Perceptions, found that more than three-quarters (78%) of marketers surveyed plan to buy ad inventory on streaming TV within the next 12 months and while only 2% of those surveyed said they never used video in their ads, 49% use video frequently, 38% use it occasionally, and 11% use it in all campaigns.
The data also showed that an average of 30% of total advertising budgets are allocated to digital video across multiple channels, with 28% of that going to social platforms, 26% to in-stream, 20% to traditional local or national TV, and 13% to in-unit ads. But the survey found that it was the newest category, CTV, also described as IPTV or OTT, that made the strongest impression, garnering 12% of planned video spend.
The survey also found video measurement was still evolving. The top three KPIs for evaluating video inventory were completion rates (49%), impressions/reach (46%), and quality scores including viewability & fraud (44%). However, SteelHouse found that there were differences between marketers and agencies. Marketers identified impression/reach (48%), completion (47%), and click-through (44%) as the most valued metrics, while agencies chose completion (53%), quality scores (45%), and in-target delivery/GRPs (comScore, Nielsen, etc.). Sales attribution was low for both (28%).
“With more than 400,000 people cutting the cord from cable in favour of CTV every month, advertisers are having to rethink how to reach their audience,” explained SteelHouse CMO David Simon. “CTV is a fully addressable, all digital channel that combines the storytelling power of traditional television with the targeting and accountability of digital media. This study reflects a market that is changing rapidly, and we’re excited to be in a position to let our clients and partners leverage these insights through our technology.”