70% of UK marketers expect more spend on advanced TV ads over next year | Ad Tech | News | Rapid TV News
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Tough times are ahead as economies struggle to cope with the impact of Covid-19 but a Europe-wide study from FreeWheel of marketing decision makers at advertisers and agencies has found that advanced TV elicits a high level of optimism from UK firms.
FreeWheel 15May2019
The research was an attempt to understand how this disruption has created challenges and impacted spending priorities for European marketers, and how it has changed their expectations about the year ahead.

FreeWheel’s overall study took the views of 500 DMs in the UK, France, Germany, Italy and Spain between 19 September 2020 and 5 October 2020. Almost two-fifths of respondents were comprised of advertisers and 46% of respondents were comprised of agencies, with the remainder comprised of media owners or others. For the UK specifically, 100 marketing decision makers were surveyed between 19 September 2020 and 5 October 2020. Almost a third were advertisers, 48% of respondents were comprised of agencies, with the remainder comprised of media owners or others.

The findings revealed high levels of optimism from respondents in the UK about Advanced TV advertising, but also illustrate a difference of views between advertisers and agencies in relation to the benefits of adopting advanced TV advertising and its perceived obstacles. For the purposes of its survey, FreeWheel defined advanced TV as referring to video-on-demand (VOD), connected TV (CTV), over-the-top (OTT), audience-based linear advertising, programmatic advertising and addressable TV and the top line finding was that 70% of UK marketers surveyed expect advanced TV ad spend to increase in the next 12 months.

The most important driver for 77% of UK agency respondents for investing in advanced TV was the ability of it to manage frequency of exposure to campaigns, while 60% cite the opportunity to reach new audiences as an important factor. For UK advertiser respondents, the single transaction point appeals most at 63%, which is followed by the ability to better manage frequency of exposure to campaigns at 59%.At a more top-line level, UK agencies were focused more on the digital aspects of advanced TV, while UK advertisers prioritised the benefits related to traditional TV. UK advertisers see the potential for advanced TV to complement and amplify traditional campaigns, with top drivers highlighted being unified transactions and the ability to extend linear reach.

However, in terms of inhibitors, UK marketers were well above their European counterparts on ranking the perceived cost of advanced TV as an obstacle at 66%. This was far higher than the average response across the five European countries surveyed, which stands at 54%. UK agencies unsurprisingly pointed to more practical aspects of running advanced TV campaigns as concerns. Two-thirds of UK survey respondents highlight difficulties in effectively running linear and Advanced TV campaigns simultaneously, which could also be an area that feeds into UK advertiser concerns over a lack of accurate measurement tools. A unified approach to linear and advanced TV could encourage the take up of these platforms for both UK advertisers and agencies.

UK advertisers and agencies were found to be closely aligned on the importance of upper funnel marketing objectives for the next 12 months, with a significant majority (65%) of UK respondents citing customer acquisition as their top priority. This is balanced with importance placed by marketers on customer retention, with 57% of UK marketers focusing on customer loyalty.

While their wider marketing priorities were said to be aligned, the survey showed that UK advertisers and agencies saw advanced TV platforms as contributing towards their priorities in different ways. UK agencies see VOD and connected TV as contributors to the lower funnel objective of customer retention – 38% for VOD and 45% for connected TV. UK advertisers were choosing these platforms to feed into upper funnel objectives of customer acquisition (41%) and brand health (36%).

According to the same survey, UK advertisers are most confident about the year-on-year growth of connected TV (an 18% yearly increase), VOD (+17%) and OTT (+12%). UK agencies, on the other hand, see the top three platforms to be addressable TV (+17%), VOD (+16%) and programmatic TV (+11%).

“This research points to a need for greater awareness and understanding about how each Advanced TV platform can contribute towards upper or lower funnel marketing objectives,” Virginie Dremeaux, executive director, product and sales marketing international, FreeWheel, said of the findings. “Critically, the research also points to the potential for a unified linear and digital approach to TV prompting take-up for both agencies and advertisers. This would also help enable a consistent approach to advanced TV campaigns that means brands can meet their marketing objectives and get the best return on investment from these premium platforms.”