Advanced TV Trends Annual Survey of Marketers and Media Agencies - April 2018 - Videology
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Advanced TV Trends
Annual Survey of Marketers and Media Agencies
April 2018
1
Advanced TV Trends
Annual Survey of Marketers and Media Agencies
Executive Summary
Last year, Videology commissioned Advertiser Perceptions to conduct our first survey of marketers and media agencies on the then emerging area of Advanced TV
advertising—a term that we used to encompass both data-enabled linear television and addressable TV. Since then, TV advertising in all its manifestations, inclusive of
Advanced TV, has continued to evolve at a rapid pace. As a result, we expected our second survey to reveal some big changes in advertisers’ perceptions and usage trends
—and it didn’t disappoint.
Of course, since so much can change in the course of a year in such a fast-growing industry, we also included some new areas of interest. Since last year, OTT and
connected TV have emerged as a stronger advertising channel, so we included more questions on over-the-top, as well as VOD, FEP and traditional linear (which isn’t going
anywhere soon). We’ve also explored questions surrounding holistic cross-screen planning and buying, measurement, and what to expect in this year’s upfronts.
Our report is organized into four sections: Usage Trends, Shifting Perceptions, Market Drivers and Upfronts. Each section includes a highlights page followed by more in-
depth graphs. In this Executive Summary, we will try to touch upon the key themes, but we encourage you to delve into the body of the report as there are insights to be
found on each page.
2018 Survey Highlights:
Ø The use of data and automation in TV advertising continues to escalate
• Programmatic TV buying (the use of technologies to automate the targeting, buying, placement and/or optimization of media inventory) is now used by 80% of
advertisers (including marketers and agencies) on at least a portion of their buying, up from 65% last year.
• Advanced TV and OTT advertising have strongest anticipated growth over next 12 months: 79% of advertisers expect to use Advanced TV (Addressable or Data-
enabled) in the next 12 months, and 71% plan to use OTT.
• Over 50% of advertisers expect to increase their spend on Addressable TV, OTT and Data-enabled TV in 2018, while less than 4% expect to decrease spend, on
any of the three channels.
2
Advanced TV Trends
Annual Survey of Marketers and Media Agencies
Ø Converged planning across screens and devices is growing.
• In this year’s survey, 91% of advertisers said that they planned holistically across TV and video, compared to 82% last year.
• In terms of volume, 36% of campaigns are now planned cross-channel, and advertisers anticipate the percentage of holistically planned campaigns to rise to 48% in 2019.
• Despite this trend, however, integrated budgets are not yet the norm, as funding tends to come form either TV or digital budgets.
• Linear TV budgets provide primary funding for Advanced TV and VOD
• Test budgets are still the 2nd highest contributor to Advanced TV campaigns
• OTT receives equal funding from both Linear TV and Digital Video budgets
Ø Cross-screen measurement continues to present an area for improvement.
• While 57% of advertisers say their organization buys agnostically across screens, only 47% say that measure across screens.
• Yet, 56% of advertises are optimistic that TV and video will be measured by the same metrics within three years—with marketers slightly more optimistic than agencies (63% vs
49%) that measurement will converge.
• Only 8% of advertisers are “extremely” satisfied with measurement, and 40% are “somewhat” satisfied.
• Advertisers’ recommendations to improve measurement broadly include cross-screen solutions, standardization of data, and full-funnel attribution capabilities.
Ø Improved targeting is seen as the greatest advantage of Advanced TV over traditional TV by a wide margin.
• 52% of advertisers chose targeting as one of the top three benefits, followed by cross-screen targeting/measurement capabilities (35%) and a more optimized media plan
(33%).
• Compared to last year, a smaller percentage cited inventory quality, ROI measurement, national reach and campaign measurement as challenges, which could suggest
perceived improvement in these areas.
3Advanced TV Trends
Annual Survey of Marketers and Media Agencies
Ø Premium audience access is a key consideration when working with an Advanced TV provider.
• When evaluating providers, advertisers are most concerned with premium audiences, transparency and scale.
• Consistent with integrated buying and planning trends, cross-screen capabilities are important to three-quarters of all advertisers.
Ø Advertisers’ understanding of Advanced TV differentiators has increased significantly year-over-year.
• In this year’s survey, 71% said they understand the differences between data-enabled TV and addressable TV (the two channels
identified as “Advanced TV” for the purposes of this survey), compared to 43% in 2017.
Ø The Upfronts are going strong –and audience-based TV buying will be part of them.
• More respondents say they will attend the TV upfronts this year (43%) than say they attended last year (34%); and, 56% of advertisers
say that they plan to attend this year’s NewFronts compared to 26% who attended last year.
• Moreover, 53% of advertisers say that they will include audience-based TV buying as part of their upfront strategy, and
43% say they will include audience-based TV planning.
• Not surprisingly then, 39% of advertisers—and 57% of those at senior levels—are very interested in hearing more about Advanced TV as
part of the 2018/2019 Upfronts.
4Advanced TV: Usage Trends
5Section Summary: Advanced TV Usage Trends
Programmatic TV*
• Use of programmatic TV buying continues to grow among advertisers: 80% of advertisers currently buy at least a portion of their TV programmatically, up from 65%
of advertisers last year.
• Advertisers are spending the way they said they would: the percent of advertisers currently spending on programmatic TV (80%) is in line with the percent (85%) in
last year’s survey who expected to buy programmatically in 2018.
• Looking ahead, 95% of advertisers expect to spend on programmatic TV in 2019.
• The tipping point for programmatic TV is 3-5 years out: similar to last year, most advertisers still expect that within 3-5 years more than half of total TV buying will be
programmatic.
Holistic Planning, Buying & Measurement
• The number of advertisers planning holistically across TV and video screens is rising:
82% planned cross-screen in 2017 compared to 91% this year.
• Over 36% of campaigns are now planned across channels, a percentage anticipated to rise to 48% in 2019.
• A larger percentage of advertisers say they are buying holistically as opposed to measuring holistically: 57% say their organization buys agnostically across screens,
while 47% say that measure across screens. Yet, 56% of advertises are optimistic that TV and video will be measured by the same metrics within three years—with
marketers slightly more optimistic than agencies (63% vs 49%) that measurement will converge.
* “Programmatic” defined as technologies that automate the targeting, buying, placement and/or optimization of media inventory.
Source: Videology analysis of Advertising Perceptions 2018 survey results.
6Section Summary: Advanced TV Usage Trends
Advanced TV
• Despite trend toward holistic planning, integrated TV and video budgets are not yet
the primary source of funding for any TV or video channel.
• Linear TV budgets provide primary funding for Advanced TV and VOD
• Test budgets are still the 2nd highest contributor to Advanced TV campaigns
• OTT receives equal funding from both Linear TV and Digital Video budgets
• Advanced TV and OTT advertising have strongest anticipated growth over next 12 months: 79% of advertisers expect to use Advanced TV
(Addressable or Data-enabled) in the next 12 months, and 71% plan to use OTT.
• Linear TV advertising remains most used, though down from 2017: 70% of advertisers expect to use traditional linear TV in 2019,
compared to 78% in 2018 and 88% in 2017.
• When looking at share of ad spend, linear TV still dominates: 77% of advertisers spend over 20% of budgets on TV, and 43% spend over
51%; yet, considering their relatively recent availability, a significant percentage of
advertisers are allocating over 20% of ad budgets to Data-enabled, Addressable and OTT (see Slide 22).
• Optimism scores for Addressable TV, OTT and Data-enabled TV are high: over 50% of advertisers expect to increase their spend in 2018,
while less than 4% expect to decrease spending, with respect to each channel. (Optimism equals percent who plan to increase spend
minus percent who expect to decrease spend.)
Source: Videology analysis of Advertising Perceptions 2018 survey results.
780% of advertisers currently buy at least a portion of their
TV programmatically, up from 65% of advertisers last year.
2018 2017
Current % of TV Spending Programmatically Current % of TV Spending Programmatically
75% to < All (100%) 75% to <
100% 1% 100% All (100%)
3% 7% 1%
50% to <
75% None
20% 50% to <
8% 75%
None
11%
35%
25% to <
50% 25% to <
25% 50%
17%
1% to <
25%
43%
1% to <
25%
29%
* “Programmatic” defined as technologies that automate the targeting, buying, placement and/or optimization of media inventory.
What percent of your [company’s/clients’] TV advertising would you estimate is currently being spent programmatically?
Base: Total Respondents (W2=171; W1=156)
8The percentage of advertisers spending on programmatic is in
line with the percentage who said they expected to spend this year.
2018 2017
Current % of TV Spending Programmatically Current % of TV Spending Programmatically
75% to < 75% to < All (100%)
100% All (100%)
100% 0%
3% 1%
3%
50% to <
75% None
8% 50% to < 15%
None 75%
20% 12%
25% to <
50%
25%
25% to <
50%
28% 1% to <
25%
1% to < 42%
25%
43%
* “Programmatic” defined as technologies that automate the targeting, buying, placement and/or optimization of media inventory.
2018: What percent of your [company’s/clients’] TV advertising would you estimate is currently being spent programmatically?
Base: Total Respondents (W2=171; W1=156)
2017: What percentage do you anticipate spending via programmatic in 2018
Base: Total Respondents (W2=171; W1=156)
9Compared to 2017, the percentage of advertisers anticipating
to spend on programmatic TV in the year ahead rose from 85% to 95%.
2018 2017
Current % of TV Spending Programmatically Current % of TV Spending Programmatically
75% to < All (100%) 75% to <
All (100%)
100% 2% None 100%
0%
4% 5% 3%
None
50% to < 15%
75%
12%
50% to <
75% 1% to <
22% 25%
36%
25% to <
50%
25% to < 28% 1% to <
50% 25%
31% 42%
* “Programmatic” defined as technologies that automate the targeting, buying, placement and/or optimization of media inventory.
Q6a. And, what percentage do you anticipate spending via programmatic in 2019 (2018 in 2017 Wave)
Base: Total Respondents (W2=171; W1=156)
10Most advertisers still expect that within 3-5 years
more than half of total TV buying will be programmatic.
When Will More Than Half Of TV Buying Be Done Programmatically?
Currently more
than half of TV
buying is done
programmatica Never 1-2 years
lly 5% 9%
2%
More than
10 years
5%
6-10 years
25%
These percentages are 3-5 years
similar to 2017 survey, 54%
suggesting the timeline
may have shifted slightly
further out.
* “Programmatic” defined as technologies that automate the targeting, buying, placement and/or optimization of media inventory.
At what point in the future would you expect more than half of TV buying industry-wide will be done programmatically?
Base: Total Respondents (171)
11Year over year, the percentage of advertisers planning
their TV and Digital Video campaigns holistically rose from 82% to 91%.
Over one-third of campaigns (36%) are now planned across channels.
2018 2017
Current % TV/Video Campaigns Planned Current % TV/Video Campaigns Planned Across
Across Channels Channels
All (100%) All (100%)
4% 75% to less 5%
75% to less
than 100%
than 100%
6%
7% None None
9% 18%
50% to less
than 75% 50% to less
14% than 75%
Less than 14%
25%
31%
25% to less
than 50% Less than
17% 25%
25% to less 40%
than 50%
35%
Average: 36% of campaigns Average: 31% of campaigns
What percentage of your [company’s/clients’] TV/digital video campaigns are currently planned across channels (linear and digital)?
Base: Total Respondents (W2=171; W1=156)
12Advertisers expect to increase their holistic planning
of TV and Video advertising to almost half of all campaigns in 2019.
2018
Anticipated % of TV/Video Campaigns
Planned Holistically
75% to All (100%)
less than 4%
100% None
11% 4%
Less than
Current Cross-channel Planning = 36%
25%
18%
50% to
less than
75% 25% to Anticipated Cross-channel Planning = 48%
27% less than
50%
33%
Average: 48% of campaigns
What do you anticipate that percentage will be a year from now (2019)?
Base: Total Respondents (W2=171; W1=156)
13Looking closer at cross-channel TV and video advertising, a larger percentage of
advertisers say they are buying holistically as compared to the percentage measuring holistically.
Organizational Approach to Buying TV/ Preferred Approach to Measuring TV/ Digital
Digital Video Audiences Video Campaigns
Different Measure
strategy for holistically
Measure
each device/ across
Agnostically each screen
screen devices/
across individually
43% screens
devices/ 53%
screens 47%
57%
Senior Titles: 50% Senior Titles: 32%
Mid Level/Junior Titles: 63% Mid Level/Junior Titles: 59%
When running TV/video campaigns how [does/do]your [company/clients] typically buy audiences?
How [does/do] your [company/clients] prefer to measure multi-screen TV/digital video campaigns?
Base: Total Respondents (171)
14Looking ahead, slightly more than half of advertisers believe that
TV and video will be measured by the same metrics within three years—although
marketers are more optimistic than agencies that measurement will converge.
Will TV And Video Be Measured By Same
Metrics Within Next Three Years?
No
44% Yes
56% Agency: 49%
Marketer: 63%
Senior/Mid Level Titles: 58%
Mid Level/Junior Titles: 45%
Within the next three years, will TV and digital video be measured by the same performance metrics?
Base: Total Respondents
15Definition Key
For remainder of survey questions in this section, after capturing their baseline knowledge of the differences between Data-
Enabled TV and Addressable TV advertising, respondents were given the following definitions:
• Linear TV Advertising as: Advertising on either cable or broadcast linear Television.
• Data Enabled TV (DETV) Advertising as: Linear TV that uses data to identify high-indexing linear TV programming with a high concentration of the
advertiser’s desired consumer target.
• Addressable Linear TV Advertising as: Linear TV advertising that, through the use of data, can reach consumers at the individual household level.
• Advanced Linear TV Advertising as: A general term that encompasses both data-enabled and addressable TV advertising.
• OTT/Connected TV as: A television connected to the internet through the TV itself, or through an external device (such as a Roku, Apple TV, or game
console).
• Cable/Satellite Video on Demand as: A system that allows users to select and watch video content such as TV or Video through their cable or satellite
provider when they choose to watch (rather than at specific broadcast time).
• Full-Episode Player (FEP) as: A full-length TV video placed on the web, which often includes multiple ad breaks throughout the streaming video content, an
example would be hulu.com
16Despite trend toward holistic planning, integrated TV and video budgets
are not yet the primary source of funding for any TV or video channel.
• Linear TV budgets provide primary funding for Advanced TV and VOD ▼ Notably
• Test budgets are still the 2nd highest contributor to Advanced TV campaigns Higher/Lower
▼
• OTT receives equal funding from both Linear TV and Digital Video budgets than 2017 wave
Primary Funding Source
Advanced TV
Digital Video Linear TV (data-enabled, OTT/Connected TV Video on Demand Full Episode Player (FEP)
addressable)
Digital video budget 45% Linear TV budget 64% Linear TV budget 31% Linear TV budget 30% Linear TV budget 46% Digital video budget 31%
11%
▼
Integrated video Integrated video Integrated video
Digital budget (not Test/experimental
22% budget (screen- 11% 22% Digital video budget 28% budget (screen- 23% budget (screen- 24%
video-specific) budget
agnostic) agnostic) agnostic)
Integrated video Integrated video
Linear TV budget 14% Digital video budget 11% budget (screen- 18% budget (screen- 15% Digital video budget 13% Linear TV budget 22%
agnostic) agnostic)
▼ 11%
Integrated video
Digital budget (not Digital budget (not Test/experimental Digital budget (not
budget (screen- 12% 7% Digital video budget 16% 15% 10% 15%
video-specific) video-specific) budget video-specific)
agnostic)
Test/experimental Test/experimental Digital budget (not Test/experimental Digital budget (not Test/experimental
5% 5% 13% 12% 9% 8%
budget budget video-specific) budget video-specific) budget
Which budget primarily funds the following types of TV/Digital Video advertising?
Base: Used Type of TV/Video Advertising past 12 months (Variable base)
17Advanced TV and OTT advertising have strongest anticipated growth over next 12
months. Linear TV advertising remains most used, though down from 2017.
Past/Next 12 Month Usage of Ad Types ▼ Notably
(Sorted by past 12 month usage) ▼
Higher/Lower
than 2017 wave
78% ▼ 10%
Linear TV (cable or broadcast)
70%
13%
▼
55%
OTT/Connected TV
20%
▼
71%
OTT/Connected TV
54% ▼ 16%
Used in Past 12 Cable/Satellite Video on Demand
61%
Months
Agency: 63% 53%
Marketer: 47% Full Episode Player (FEP)
67%
Plan to Use Next 12 Data-Enabled TV/Addressable TV 57%
Months (Net) 79%
Agency: 75%
Marketer: 66% 46%
Addressable linear TV
65%
Senior titles more likely to
32% currently use and planning to use
Data-enabled linear TV (DETV) Advanced TV advertising types
63%
Used Past 12 Months Plan to Use Next 12 Months
Approximately how much in TV advertising did your company/client spend in the past 12 months?
Which specific types/formats of TV advertising have you been involved in purchasing/using during the past 12 mos? Which do you plan to
use in the next 12 mos?
Base: Total Respondents (171)
18When looking at share of advertising, Linear TV clearly dominates.*
Yet, considering their relatively recent availability, a significant percentage of advertisers
are allocating over 20% of ad budgets to Data-enabled, Addressable and OTT.
Share of Advertising Allocation, Among Current Users of Each TV Type
12%
20% 17% 17%
26%
>20%
77%
6-20% 62% 71%
64%
65% 57%
1-5%
24% 20%
14% 17% 16% 17%
Linear TV DETV Addressable TV OTT/Connected TV Cable/Satellite Full Episode Player
Video on Demand (FEP)
* 43% of advertisers spend over 51% of advertising on Linear TV.
Imagine that your TV advertising is a pie. Over the past 12 months what share of advertising was allocated to each of the following? For your reference, you indicated your past
12-month TV advertising spend was [INSERT RANGE FROM Q1d].
Base: Use TV Type (Variable Base)
19In 2018, there is “high spend” optimism for Advanced TV and premium video viewing.
Over 50% of advertisers expect to increase spend on OTT, Data-enabled and Addressable TV.
Projected Spend Plans Next 12 Months: Net Spend
Increase/Decrease/Maintain Optimism Score
Data-enabled linear TV 56% 40% 4% 52
OTT/Connected TV 53% 44% 3% 50
Addressable linear TV 53% 47% 0% 53
Optimism (equals percent
who will increase spending
minus percent who will
Full Episode Player 41% 53% 7% 34 decrease spending
expressed as a whole
number)
Cable/Satellite Video on
27% 68% 5% 22
Demand
Linear TV (cable or broadcast) 20% 57% 23% -3
Increase Stay the Same Decrease
In the next 12 mos, do you expect the amount of your [company’s/clients’] advertising spend on the following
advertising to increase, stay the same or decrease?
Base: Used Media in Past 12 Months (Variable Base)
20Advanced TV: Industry Perceptions
21Section Summary: Industry Perceptions on Advanced TV
Market Understanding
• Compared to last year, there has been a significant increase in the percentage of advertisers who say that they understand the differences between data-
enabled TV and addressable TV (the two channels identified as “Advanced TV” for the purposes of this survey): 71% said that they understand the
differences compared to 43% in 2017.
• There is still room for education: for instance, 60% of advertisers are interested in learning more about the relative benefits and challenges of using data-
enabled TV in comparison to addressable TV.
Perceived Benefits
• Improved targeting was cited as the greatest perceived advantage of Advanced TV over traditional TV by a wide margin: 52% of advertisers chose it as a top
three benefit followed by cross-screen targeting/measurement capabilities at 35%, and a more optimized media plan at 33%.
• Compared to last year, a smaller percentage cited inventory quality, ROI measurement, national reach and campaign measurement as challenges, which
could suggest perceived improvement in these areas.
• When looking at perceived benefits* of individual channels:
• Targeting Precision scores highest for OTT, with Reach scoring lowest
• Targeting Precision scores highest for Advanced TV, with Transparency scoring lowest
• Reach scores highest for Linear TV, with Targeting Precision scoring lowest
* Among seven choices including: Targeting, Brand Safety, Accountability/Measurement, Awareness, Transparency, Easy to Use, ROI/ROAS, Cost Effective, Drives Sales, Reach.
Source: Videology analysis of Advertising Perceptions 2018 survey results.
22There have been significant increases in advertiser understanding of
Data-enabled TV and Addressable TV over past year.
Self-Reported Understanding of Differences between ▼ Notably
Data-enabled TV and Addressable TV Higher/Lower
▼
than 2017 wave
No
29%
Yes 28 percentage points YOY
▼
71% (2017 = 43%)
Agency: 65%
Marketer: 78%
Senior Titles: 79%
Mid Level/Junior Titles: 66%
Do you understand the differences between Data Enabled TV advertising and Addressable TV
advertising?
Base: Total Respondents (171)
23But advertisers are still hungry for information and
best practices for Data-enabled TV and Addressable TV
Topics of Most Interest to Advertisers on Data-enabled and Addressable TV
Comparison of the
Comparison ofbenefits and challenges
the benefits of using
and challenges Data
of using 60%
Enabled TV vs. Addressable TV
Data Enabled TV vs. Addressable TV
Detailofofthe
Detail thedata
datasources
sourcesused,
used, targets
targets available,
available, data
data 50%
accuracy of Data Enabled TV vs. Addressable
accuracy of Data Enabled TV vs. Addressable TV TV Senior/Mid Level Titles: 47%
Junior Titles: 64%
Effective measurement
Effective measurement for Data
for Data Enabled Enabled
TV and TV and
Addressable 49%
Addressable TV (best TV
metrics)
(best metrics)
Bestuses
Best usesofofData
Data Enabled
Enabled TV
TV vs.
vs. Addressable
AddressableTV
TV 47%
Examples of marketers/brands
Examples of marketers/brands who
who are using areEnabled
Data using Data
TV 35%
Enabled TV vs. Addressable TV
vs. Addressable TV
Availability
Availability of of testprograms
test and learn and learn that
programs
allow that allow to
advertisers 34%
advertisers totest
testData
DataEnabled
Enabled TV vs. Addressable
AddressableTVTV
Freeaccess
Free accesstotoan
anAdvanced
Advanced TV
TV platform
platform to use
use or
or test
test 25%
capabilities capabilities
Which of the following Data Enabled TV and Addressable TV advertising topics would you be most
interested in hearing more about?
Base: Total Respondents (171)
24Biggest top-of-mind benefits of advanced TV advertising
(In their own words)
“ “Being able to identify and deliver messages to specific households and use actual campaign performance data to determine
overall impact.” – Agency, Director
“Better reach of target audience with less waste; better CPM; able to better optimize media plans.” – Agency, VP+
“Improved efficiency of working media as you can have greater confidence your message is reaching your target audience.” –
Marketer, VP+
“The ability to go beyond gender and age targeting to put a client’s ads in front of a more representative target audience of their most likely-to-convert prospects.” –
Agency, VP+
“The prices that we pay are near unbeatable; we could not ask for a better rate.” – Marketer, VP+
“
“The biggest benefit of Advanced TV advertising is that it enables advertisers to reach specific households based on finely detailed consumer data. This creates a
much larger marketing opportunity and potential far greater than the basic demos that Traditional TV typically targets. Advanced TV advertising also enables the
specific measurement of actions take by the target audience as a result of the ad campaign such as specific sales and increased traffic into stores and online retailers.
Advanced TV advertising is data driven, addressable and accountable.” – Agency, VP+
Q3a: What would you say are the biggest benefits of Advanced TV advertising?
Base: Total Respondents (171)
25Improved targeting remains the greatest perceived advantage Advanced TV has over
traditional TV. In terms of challenges, YOY declines were seen in several different areas,
suggesting improvement.
Top Three Benefits of Advanced TV Advertising Top Three Challenges of Advanced TV Advertising
Quality of Inventory
Improved Targeting/Less waste 52% ▼ 16% (Verified, Fraud-free) 42% ▼ 14%
Cross-Screen Targeting/ Data Transparency
Measurement capabilities 35% 41%
ROI Measurement
More optimized media plan 33% capabilities (business
37% ▼ 9%
KPI’s, e.g., Sales)
Improved measurement 32% True national reach
33% ▼ 13%
Audience discovery/Planning
30%
Plan Transparency 32%
Incremental reach for Agency: 30%
traditional TV buys 27%
Marketer: 45%
Lack of control 27%
Improved CPM efficiency 27% Agency: 39%
Overlap with traditional TV 26% Marketer: 25%
Automation/ease of use 26%
▼
16% buys
Ongoing optimization Campaign Measurement 26% ▼ 9%
20% ▼ 11%
throughout the life of campaign
No benefits Supplier disclosure 18%
1%
What are the top three (3) biggest benefits of Advanced TV advertising versus traditional TV?
What are the top three (3) biggest challenges to using Advanced TV advertising?
Base: Total Respondents (171) (Change in question text may have impacted trending. )
26Looking at OTT Advertising specifically, precise targeting is far and away the greatest
perceived advantage; scale is the biggest perceived disadvantage.
Top Three Benefits of Advanced TV Advertising Top Three Challenges of Advanced TV Advertising
Precise Targeting 58% Scale 44%
Quality of Inventory (Verified,
Detailed Measurement 39% 39%
Fraud-free)
Ongoing optimization ROI Measurement capabilities
throughout life of campaign
37% (business KPI’s, e.g., Sales) 36%
Cross-Screen Targeting/
Measurement Capabilities 35% Plan Transparency 33%
More automated than
32% Lack of education/ 30%
traditional TV advertising
understanding
CPM efficiency 30% Agency: 38%
30%
Advanced targeting challenges Marketer: 22%
Lean-back TV experience 20% Campaign Measurement 29%
Small ad load 18% Overlap with traditional TV
28%
buys
What are the top three (3) biggest benefits of OTT/Connected TV advertising?
Base: Total Respondents (171)
27Reach and targeting precision take the top and bottom positions respectively for
Linear TV and OTT. Advanced TV, however, scores relatively high on both.
Media Type Perception Criteria Ratings (Rated 8-10)
OTT/Connected TV
Transparency
OTT /Connected TV Advanced TV Linear TV (cable/broadcast)
Agency: 23%
Marketer: 37% Targeting precision 36% Targeting precision 42% Reach 53%
Advanced TV Brand safety 35% Brand safety 36% Brand safety 51%
Easy to Use Builds brand awareness/Top of Builds brand awareness/Top of
Accountability and measurement 31% 36% 47%
Agency: 24% funnel KPI’s funnel KPI’s
Marketer: 36% Builds brand awareness/Top of
31% Reach 35% Transparency 43%
funnel KPI’s
Linear TV
Transparency 30% Accountability and measurement 33% Easy to use 43%
ROI/ROAS
Agency: 23% Easy to use 29% Cost effective 33% Cost effective 31%
Marketer: 37%
ROI/ROAS 29% ROI/ROAS 32% ROI/ROAS 30%
Reach
Agency: 59% Cost effective 28% Easy to use 30% Accountability and measurement 29%
Marketer: 46%
Drives sales/conversions/Lower Drives sales/conversions/Lower Drives sales/conversions/Lower
Senior titles rate OTT/ 28% 29% 28%
funnel KPIs funnel KPIs funnel KPIs
Connected TV and
Advanced TV higher on Reach 27% Transparency 28% Targeting precision 23%
multiple criteria
How well does [insert media type] rate on the following criteria? Even if you have never used [insert media type] for advertising
purposes, we’d like your opinions based on your perceptions.
Base: Total Respondents (171)
28Advanced TV: Market Drivers
29Section Summary: Advanced TV Market Drivers
What is most important to Advertisers?
• When evaluating Advanced TV providers, advertisers are most concerned with premium audiences, transparency and scale.
• Consistent with integrated buying and planning trends, cross-screen capabilities are important to three-quarters of all advertisers.
Attitudes for Measurement and Effectiveness
• Advertisers’ primary measure of effectiveness for advanced TV is delivery of targeted impressions (beyond age/gender). Delivery of
demo GRPs places second, and online sales places third. Offline sales places last, however, that may say more about the perceived
ability to measure, rather than interest in measuring offline activity.
• Only 8% of advertisers are “extremely” satisfied with measurement, and 40% are “somewhat” satisfied, leaving room for improvement.
• Advertisers’ recommendations to improve measurement broadly include cross-screen solutions, standardization of data, and full-funnel
attribution capabilities. Interestingly, agencies’ recommendations skew more toward cross-screen consistency; marketers’
recommendations skew more heavily toward results.
• Lack of uniform measurement has greatest impact on Addressable TV, OTT and Data-enabled TV spending. Agencies’ measurement
concerns are greatest around addressable, OTT and Cross-screen; marketers’ are most concerned with consistency in addressable,
data-enabled TV, Linear & VOD.
30Premium audience remains the key factor for Advanced TV providers,
though transparency has also become increasingly important.
Most Important Advanced TV Capabilities ▼ Notably
(Sorted by Rank 1-3) Higher/Lower
▼
than 2017 wave
Access to premium audience buying 25% 25% 20% 70%
Transparency 22% 24% 21% 67%
▼
9%
Scale 25% 20% 19% 64%
Cross-channel measurement 16% 21% 20% 57%
Self-serve capabilities/ease of use 13% 11% 19% 43%
Agency: 36%
Marketer: 49%
Rank 1 Rank 2 Rank 3 Rank 1-3
Please rank the importance of each of the following capabilities of an Advanced TV Provider: Please rank each where
1 = most important and 5 = least important.
Base: Total Respondents (W2=171; W1=156)
31Consistent with integrated buying/planning trend, cross-screen capabilities
important to 74% of advertisers evaluating Advanced TV providers
Importance of Cross-Screen Capabilities
Not at All/
Not Very
Important
6%
Very
Neither
Important
Important
23%
Nor
Unimportant Top 2 Box
20% (Very/Somewhat Important):
74%
Somewhat
Important
51%
When evaluating your Advanced TV advertising needs, how important is it that the vendor connect audiences
across devices using a common data set?
Base: Total Respondents (171)
32Audience reach of strategic targets is the top measure of
Advanced TV effectiveness among advertisers.
Primary Measure for Advanced TV Campaign Effectiveness
Advanced-targeted audience
Advanced-targeted GRPs/Impressions
audience GRPs/Impressions Agency: 22%
(beyond age, gender) 32%
(beyond age/gender) Marketer: 42%
GRPs/Impressions based
GRPs/Impressions on Demo
based (age/gender)
on Demo (age/gender) 16%
Online Sales
Online Sales 14%
Reach
Reach 13%
CPM/eCPM
CPM/eCPM 11%
Audience Concentration
Audience Concentration 7%
Offline Sales
Offline Sales 5%
What is your primary measure for Advanced TV campaign effectiveness?
Base: Use DETV/Addressable TV (97)
33Almost half of advertisers are satisfied with current Advanced TV
measurement metrics –but there is room for improvement.
Satisfaction with Current Advanced TV Metrics
Extremely Top 2 Box
dissatisfied (Extremely/Somewhat Satisfied):
3% Extremely
satisfied
8%
48%
Somewhat
dissatisfied
19%
Somewhat
satisfied
40%
Neutral
30%
How satisfied are you with the current metrics available to measure advanced TV campaign
effectiveness?
Base: Use DETV/Addressable TV (97)
34Recommended TV measurement improvements center around
standardization, cross-screen solutions and full-funnel attribution.
Top 3 Recommendations for Changes in TV Measurement
(Sorted by Rank 1-3)
Common
Commoncross-screen metrics
cross-screen metrics 16% 19% 16% 51%
Actual R&F
Accurate R&Facross devices
across devices 15% 18% 13% 46%
Ability to to
Ability apply
applyconsistent targeting
consistent targeting 16% 11% 18% 45%
Standard third-party
Standard third-party verification
verification ofof
strategic 14% 13% 18% 45%
strategic targettarget delivery
delivery
More sales-results
More oriented metrics
sales result-oriented metrics 14% 14% 12% 41%
Full-funnel attribution
Full-funnel attribution capabilities
capabilities 12% 12% 11% 36%
Breakdown ofofwalled-garden
Breakdown data siloes
walled-garden data siloes 10% 12% 11% 34%
Rank 1 Rank 2 Rank 3 Rank 1-3
What are the top 3 changes you would like to see in TV measurement? Please rank your top 3, with one being
the change you would most like to see.
Base: Use DETV/Addressable TV (97)
35Recommended TV measurement improvements segmented by agencies and marketers.
Agencies’ recommendations skew more toward cross-screen consistency; marketers’
recommendations skew more heavily toward results.
Top 3 Recommendations for Changes in TV Measurement
(Sorted by Rank 1-3)
Common cross-screen metrics 57%
Common cross-screen metrics
46%
55%
Actual R&F
Accurate across
R&F acrossdevices
devices
38%
51%
Ability to apply
Ability consistent
to apply targeting
consistent targeting
40%
Agency
Standard third-party verification of strategic target 43%
Standard third-party verification of strategic target delivery Marketer
delivery 48%
33%
More sales-results oriented metrics
More sales result-oriented metrics
50%
33%
Full-funnel attribution
Full-funnel capabilities
attribution capabilities
40%
Breakdown of walled-garden data 29%
Breakdown of walled-garden datasiloes
siloes
40%
What are the top 3 changes you would like to see in TV measurement? Please rank your top 3,
with one being the change you would most like to see.
Base: Use DETV/Addressable TV (97)
36Lack of uniform measurement has greatest impact on
Addressable TV, OTT and Data-enabled TV spending.
Media Spending Affected by Lack of Uniform Measurement
Addressable
Addressable TVTV 43%
OTT/Connected TV
OTT/Connected TV 35%
Data-enabled TV
Data-enabled TV 32%
Full Full
Episode Player
Episode (FEP)
Player (FEP) 26%
Cross-screen TV/Video
Cross-screen TV/Video 26%
Linear TV (cable
Linear or broadcast)
TV (cable or broadcast) 24%
Three-quarters of respondents
Cable/Satellite Video
Cable/Satellite on on
Video Demand
Demand 24%
indicate that lack of uniform
measurement affects spending on
None of the
None above
of the above 25% at least one of the above.
Q13c. Is lack of uniform measurement holding back spending on the following?
Base: Use DETV/Addressable TV (97)
37Uniform measurement’s impact, segmented by agencies and marketers.
Agencies’ measurement concerns are greatest around addressable, OTT and Cross-screen;
marketers’ are most concerned with consistency in addressable, data-enabled TV, Linear & VOD.
Media Spending Affected by Lack of Uniform Measurement
(Sorted by Total)
39%
Addressable
AddressableTV
TV
48%
41%
OTT/Connected
OTT/ConnectedTV
TV
29%
29%
Data-enabled
Data-enabledTV
TV
35%
27%
FullFull
Episode Player
Episode (FEP)
Player (FEP)
25%
Agency
Cross-screen TV/Video 33%
Cross-screen TV/Video Marketer
19%
Linear TV (cable or broadcast) 14%
Linear TV (cable or broadcast)
33%
Cable/Satellite Video onon
Demand 14%
Cable/Satellite Video Demand
33%
None of the above 27%
Cable/Satellite Video on Demand
23%
Q13c. Is lack of uniform measurement holding back spending on the following?
Base: Use DETV/Addressable TV (97)
38TV Upfront Plans
and the Role of Advanced TV
39Section Summary: Advanced TV and the Upfronts
2018/2019 TV Upfronts
• Upfront events continue to attract advertisers’ interest: more respondents say they will attend the TV upfronts
this year (43%) than say they attended last year (34%); and, 51% of advertisers say that they plan to attend this
year’s NewFronts compared to 26% who attended last year.
• Moreover, 53% of advertisers say that they will include audience-based TV buying as part of their upfront
strategy, and 43% say they will include audience-based TV planning.
• Not surprisingly then, 39% of advertisers—and 57% of those at senior levels—are very interested in hearing
more about Advanced TV as part of the 2018/2019 Upfronts.
Source: Videology analysis of Advertising Perceptions 2018 survey results.
40Upfront events gaining interest—especially those focused on digital content.
TV Upfronts Attendance (2017 / 2018) ▼ Notably
Higher/Lower
▼
than 2017 wave
Attended/Plan to Attend (Net) 50%
Attended in 2017 34%
Plan to Attend in 2018 43%
Did Not Attend/No plans to Attend 50%
Digital Content NewFronts Attendance (2017 / 2018)
Attended/Plan to Attend (Net) 56%
Attended in 2017 26%
Plan to Attend in 2018 51% ▼
9%
Did Not Attend/No plans to Attend 44%
Did you attend Television Upfronts or Digital Content NewFronts live events last year (2017)? Do you plan to attend Television Upfronts
or Digital Content NewFronts this year (2018)?
Base: Total Respondents (xxx)
41Majority of advertisers include Audience-based
TV buying as part of their Upfront strategy
Inclusion in Upfront Strategy
Audience-based TV Buying 53%
Audience-based TV Planning 43%
Marketers and Senior titles are
None of the above 11% more likely to include audience
based TV Buying and Planning in
their Upfront Strategy
Do not commit any budget Upfront 28%
Which of the following do you plan to include as part of your upfront strategy?
Base: Total Respondents (171)
42There is strong interest in hearing more
about Advanced TV at this year’s Upfronts
Interest in Hearing More About Advanced TV at 2018 Upfronts
Not at all
interested
2%
Not too
interested
12%
Top 2 Box (Very/Somewhat Interested): 86%
Very
interested
39%
Senior Level: 57%
Somewhat
Mid Level: 32%
inerested
Junior Level: 15%
47%
How interested are you in hearing about more advanced TV opportunities at the 2018 Upfronts?
Base: Total Respondents (171)
43About Advertiser Perceptions
Advertiser Perceptions is the global leader in research-based business intelligence
for the advertising industry. Our exclusive insights, practical advice and
knowledgeable guidance produce actionable solutions that deliver results and
enable our clients to thrive in today’s complex and competitive advertising market.
44
44Appendix
45Methodology & Profile
Leading Ad Categories Online Interviews Conducted 171 Interviews
• Automotive Company Type
Fielded:
• Baby, & Parenthood
• January 15 – 26 2018 Agency 51%
• Consumer Electronics • Incentives include cash and information
• Consumer Packaged Goods Marketer 49%
• Education/Government
Sample:
Media Involvement & Spending
Marketer and Agency contacts from The Advertiser
• Energy Perceptions Media Decision Maker Database and third-
party databases as needed. Digital Video (Desktop/Laptop) 91%
• Entertainment
• Financial Products/Services Mobile Video 90%
• Health & Beauty Qualification:
TV (Linear or Advanced) 100%
• Home & Appliance • Involved in Digital and TV Advertising Decision-
Making
• Liquor, Beer and Wine Past 12 Month Average Total Ad Spend $30.4M
• Purchased Digital Video Past 12 Months/Plan to
• Men’s / Women’s Apparel Purchase Next 12 Months
Past 12 Month Average TV Ad Spend $20.0M
• Pharmaceuticals
• $1M+ Past 12 Month Total Ad Spend
Job Title
• Quick Service Restaurants
Directional Data: Some findings in the presentation
• Retail Senior 42%
could reflect data with low bases and will be noted.
• Technology
Mid Level 39%
• Telecommunications
Junior Level 19%
• Travel
46Contacts:
Marketing@videologygroup.com
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