Why are ad buyers boosting their connected TV ad spending 25+%? New data shows the massive growth in online ad-supported viewing is a big reason.
Chapter 1: 3-in-5 ad buyers will boost CTV spending in 2H (2:00)
The connected TV has become the preferred digital channel for ad buyers. The IAB polled ad buyers in advance of next week’s NewFronts. 59% of respondents plan to spend more on Connected TV and OTT in the second half of 2020. Another 22% said they aren’t planning any change and 18% said they plan to decrease spending. Survey respondents say they will increase spending 25% in Q3 and 27% in Q4.
Chapter 2: Does this money come from TV ad spending (7:20)
I wondered where the money was coming from to boost spending on CTV so much. Could it be that buyers are taking TV ad money and redirecting it to CTV? Will thought that might be somewhat true, but he also said there is a lot of money sitting on the sidelines waiting for the economy to recover.
Chapter 3: Comscore reveals new CTV penetration and AVOD use data (9:00)
Seventy million homes in the U.S. are streaming to a television now, giving CTV a 68% reach of Wi-Fi homes. Those homes are watching much more than last year, and they are watching more often. As well, they are watching more ad-supported content on their CTV. Comscore says that almost as many homes are streaming AVOD as SVOD to their televisions.
I put the success of AVOD on CTV down to the rapid expansion of the infrastructure for delivery. Will also reminds us that free is a very compelling business model for most viewers.
Chapter 4: Are we fixing the digital ad measurement problem? (15:30)
IAB supports the idea that cross-screen measurement is essential. Some have even suggested that the NewFronts and UpFronts merge to facilitate fixing the cross-screen measurement problem.
Chapter 5: Ad-supported Quibi is moving to the big screen (17:20)
Quibi has agreed it needs to be on the connected TV. It has added support for casting to Apple and Android devices. Though the content on Quibi was supposed to be seen on a smartphone, it looks fantastic on a 50″ screen. Advertisers will be pleased Quibi is now on TV. Engagement times are much longer there, improving the effectiveness of their advertising.
Chapter 6: Crunchyroll loves CTV (20:40)
I moderated a panel at Videoscape last week and asked panelists what they loved about the connected TV market. Henry Embleton, Head of Ad Products and Revenue for Crunchyroll, extolled on the virtues of the ad functionality of connected TV:
“You can start doing lots of unique things with ad products. Whether it is just interactivity and co-viewing, or verification, and lead-gen. That’s what you can do, which you couldn’t necessarily do on traditional TV.”