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Advertisers View Connected TV as #1 Alternative to Linear TV; Rethink Upfronts
The COVID-19 pandemic has accelerated consumer behaviors and trends that are defining a new era of TV consumption. With more
Even live sports can’t keep viewers tethered to traditional TV as more
“COVID has accelerated cord-cutting trends that were already underway, to a point where less than 50 percent of
As Americans shift to CTV, there’s a limit to their tolerance for subscription services. Fifty-one percent of
Advertisers Follow the Audiences; Rethinking Upfronts and
As traditional TV consumption declines and CTV viewership continues to rise, marketers are embracing the CTV opportunity. A separate survey of 150 advertisers conducted with Advertiser Perceptions found that, among marketers who had revised their TV plans as a result of the pandemic, CTV ranks as the #1 channel choice as marketers reallocate campaign budgets. Furthermore, marketers state that CTV now represents 18 percent of their advertising spend moving forward, a significant acceleration from a standing start in recent years.
But this shift means that marketers must rethink their longstanding ad-buying habits, as well as the necessary skills investments in their teams, to capture shifting audiences. For example, the majority (59 percent) of linear TV buyers said they are making fewer upfront commitments in 2021, with ad dollars moving from traditional TV programming to CTV.
In addition, marketers are rethinking how they can better equip themselves with the skills and capabilities to develop the right teams to keep pace with the accelerated shift to CTV. According to the advertiser research, ad buyers will focus on CTV marketing skills in 2021, as 37 percent said they intend to hire new talent fluent in CTV. And more than half (55 percent) said they plan to take steps to ensure their current TV ad buying teams can navigate both linear and CTV channels.
Every aspect of the decision-making process of TV advertising, including measurement, frequency and creative, will have to evolve as more consumers shift to CTV. And marketers are recognizing just how critically important CTV is to their advertising strategies if they want to win the hearts and minds of consumers. According to the survey, the top focus areas for CTV ad buyers are:
“The TV ad business is at a tipping point. Advertisers can reach more households via CTV than via traditional linear TV for the first time. That trend is not reversing,” said Sims. “Digitally savvy advertisers recognize the advantages of CTV advertising, including precision measurement, an audience versus content focus, and the ability to apply data to all aspects of their TV campaigns. Many are embracing these opportunities, and that also means transforming some of the industry norms, including how we think about skills and ad-buying processes such as the upfronts.”
Methodology for YouGov survey
The second annual Future of TV consumer survey was conducted for
Methodology for Advertiser Perceptions survey
Advertiser Perceptions conducted an online survey of 150 TV advertising planning and buying decisionmakers with an annual TV ad budget of $5+ million. Fieldwork for this survey was conducted on
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