Majority of US advertisers using advanced ad tech solutions | Ad Tech | News | Rapid TV News
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Showing how the spend optimism for over-the-top/connected TV and addressable TV has skyrocketed over the past year, research from FreeWheel has revealed how advanced TV is being used by the majority of advertisers to reach their target audiences.

adtech 17Jan2020The Changing Face of TV Advertising: 2019, 2020 and Beyond report, a study of over 300 marketers and agencies conducted by FreeWheel and Advertiser Perceptions, focused on how advertisers are managing TV buying strategies in today’s changing landscape, and in particular, how they are approaching advanced TV solutions. It found that among these solutions, OTT/CTV was purchased by two-thirds of advertisers over the past month, the highest percentage in the sample. Addressable TV (household-level targeting), streaming full-episode players (FEPs) and audience-based linear TV were all also used by over half of all advertisers and agencies surveyed.

Spending optimism — defined as the percentage increase in spending minus percentage decrease — among advertisers surrounding OTT/connected TV and addressable TV has increased over the past year, with the spending optimism score jumping from 37 to 59, while addressable TV jumped from 38 to 54. The survey found that agencies were more bullish on their expected spend for both OTT/CTV and addressable, suggesting they may be faster than marketers to embrace new TV opportunities.

When it came to extending the reach of traditional TV, nearly four-fifths of respondents said they still turn to digital video most often to extend the reach of their TV campaigns. Advanced TV was also cited by 54% of respondents as a chosen method for extending reach – with those advertisers most likely to turn to addressable TV (69%) and OTT/CTV (66%) for reach extension.

“In 2019, we saw our clients embrace data and automation for TV buying in ways we’d never seen before,” commented Brian Wallach, SVP, Advanced TV Media Sales, FreeWheel. “The technology is there and the interest is there. We expect the breadth of capabilities and applications to increase as we move through 2020.”

Indeed, looking forward The Changing Face of TV Advertising: 2019, 2020 and Beyond report showed that there was consensus among both marketers and agencies that TV advertising faces more change in the near future. The survey predicted that audience-based TV buying is expected to continue increasing in 2020 for both linear and advanced TV, with agencies more likely than marketers to turn to this buying type. More than two-thirds (68%)of respondents believe that at least half of traditional linear TV advertising will be addressable within five years and nearly three-fifths (57%) believe a full shift to IP delivery of linear TV will occur in five to ten years, and 76% from 2025 to 2035.

Among the strongest agreement came with programmatic. As many as 83% of respondents believe the ad business is moving rapidly toward programmatic; 21% strongly agreed and only 3% strongly disagreed. “It’s a new world for advertisers, and it’s not slowing down any time soon,” Wallach concluded.