Optimism in ad-supported advanced TV outshines economic uncertainty | Media Analysis | Business | News | Rapid TV News
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The latest marketer survey from AudienceXpress, FreeWheel’s premium video media sales house and CoLab Media Consulting, has revealed that despite the cost of living crisis, 88% of UK respondents also intend to spend more on ad-supported video-on-demand and streaming platforms.
Freewheel 22 Sep 2022
The study of 500 marketing decision makers or influencers in the UK and in Germany, France, Italy and Spain was undertaken between 18 July and 22 July 2022. It explored marketers’ perspectives over the next 12 months, highlighting approaches to marketing spend in light of the current economic climate.

Fundamentally it found that while advertisers and agencies align on their overall top marketing objective of acquiring new customers, they diverge on other priorities and have different perspectives on how advanced TV can capture greater spend. It also uncovered that confidence in advanced TV, including video-on-demand (VOD), connected TV (CTV), OTT and addressable linear TV, remains strong among those surveyed.

More than half (53%) of UK advertisers and agencies aim to at least maintain overall marketing budgets in 2023. Customer acquisition is the top marketing priority, though advertisers are more focused on revenue whereas agencies are concentrating on customer retention. In addition, as many as seven in ten UK marketers (70%) surveyed intend to invest more in advanced TV in the next 12 months.

Cross-screen and audience targeting were driving advanced TV growth, but advertisers and agencies were seen to be diverging on how to unlock further spend. Optimism in ad-supported advanced TV was outshines economic uncertainty, with nearly nine in ten UK respondents planning to boost investment in such channels.

Another key trend identified was that caution was influencing overall marketing budgets. The UK market appeared to be particularly sensitive to current economic uncertainty compared to the other EU5 markets surveyed, as UK respondents showed caution around boosting overall marketing investments. Most will not ‘go dark’ in the year ahead, however, with 53% planning to at least sustain current levels of spend or even increase it.

Customer acquisition was marketers’ overall top priority for the year, but with optimism for advanced TV on the rise as 2023 approaches. Confidence in advanced TV channels appears to be accelerating in the UK market, as 70% of respondents expect to increase their advanced TV budgets in the next 12 months. In comparison, the previous survey conducted in 2021, found that 60% of participants were planning to boost investment in the channels. Present satisfaction levels with Advanced TV spend also point towards growth, as 42% of UK marketers surveyed would like to see their organisation invest more in these channels.

The audience targeting methods that advanced TV offers is considered the top driver of spend (28%), followed by the ability to connect with viewers across screens (25%). When it came to defining which factors are inhibiting spend, advertisers and agencies diverge. For the UK advertisers surveyed, lack of awareness around advanced TV is the biggest barrier to unlocking further growth (44%), but the UK agencies who took part in the study appeared to be less than half as likely to hold this opinion (20%). Instead, 30% of UK agencies rank clients’ lack of willingness to experiment with advanced TV channels as the most significant inhibitor to spend.

The study also found that advanced TV channels such as ad-supported video-on-demand (AVOD) and free ad-supported streaming TV services (FASTs) will attract higher levels of spend in the year ahead, believe 88% of UK marketers surveyed. According to 20% of respondents, these increases in spend will most likely be sourced from a combination of budgets.

“Optimism for AVOD and FASTs among UK marketers closely reflects the collective enthusiasm of the EU5 markets, with on average almost nine in ten survey respondents planning to increase their levels of spend in these channels,” said Stefanie Briec, director, head of demand sales UK & International AudienceXpress at FreeWheel, commenting on the study .

“Continuing to meet marketers’ demand for advanced technological capabilities, such as data-driven and audience-based targeting, will drive additional growth. These findings also highlight the importance of raising awareness, as well as the need to quantify advanced TV’s performance and prove the value of adopting these impactful channels.”