NEW YORK – Ad spending on connected-TV (CTV) devices is rising quickly as marketers serve up interactive video content they hope is more engaging than traditional video advertising, says a new report from video advertising provider Videology.
In its study, “Q4 TV and Video Market-At-A-Glance,” the company asserts spending on CTV devices is “beginning to accelerate, with the number of ad requests for CTV almost tripling over the past two years.”
In a blog post, Rachel Gould, Videology’s director of marketing, says there has been a 175-percent increase in the amount of ad requests for CTV in the Videology platform and that the number of impressions running exclusively on CTV grew 230 percent from third quarter.
Mark McKee, executive vice president for Videology North America, told Digital News Daily that advertisers have been “increasingly interested” in connected TV because it pairs digital capabilities with TV’s “immersive engagement.”
Videology says the most popular devices running the ads are Roku boxes, video game consoles like the Xbox, Amazon Fire TV products, and smart TV sets.
Videology also found that multichannel campaigns are alive and well. According to the report, 97 percent of video campaigns run across two or more screens.
Gould says the growth of CTV isn’t surprising and that advertisers are feeling optimistic about using CTV to drive results and reach their audiences with greater targeting and relevance than traditional linear TV.
Other Videology findings include:
- 29 percent of advertisers and agencies plan to increase CTV advertising spend in 2018.
- 65 percent said they will maintain their current spend, suggesting they are satisfied with CTV performance to date.
- Just 6 percent planned to decrease their CTV spend in the year ahead.
The company also predicts more dollars will be shifted from traditional linear TV to advanced TV strategies in the months and years ahead.
Gould says amid the growth, though, hurdles remain. The study found that 51 percent of respondents cited consistent cross-screen measurement as their biggest challenge in regard to TV and video advertising, and 44 percent said they were challenged with how to best leverage data, and over a third said their biggest challenge was lack of “clarity/understanding of what’s available and how to execute.”
She admits, “There is still room for improvement in terms of data, measurement, and education, and many in the ecosystem (like Videology) have built solutions to do just that. In the meantime, increased adoption of Connected TV and other Advanced TV channels is a step in the right direction.”