With advertising of all media types expected to grow in the next year, data-driven TV spending is no exception. According to Xandr's 2021 Relevance Report on advanced TV, about 60% of US video ad buyers will increase their spend on data-driven linear TV over the next 12 months. In addition, survey findings from Advertiser Perceptions show marketers are ready to buy more ads on streaming services.
Defining the term “data-driven TV”
Understanding what you’re discussing with an advertiser, especially as you build trust and credibility with them, is step one in a sales process. That may sound too simplistic but going into a meeting without doing your research is like going to take a test without studying. It’s not going to end well. So, what’s the difference traditional linear TV advertising and data-driven linear TV advertising? According to Xandr and Advertiser Perceptions, the key is data:
- Traditional linear TV ads – households viewing the same show on broadcast or cable TV will all see the same ads.
- Data-driven TV – although households watching the same TV show will see the same ads, “advertising is placed in TV shows based on viewership propensity concentrated towards specific advanced consumer data sets” – essentially using more advanced data types than simply demo-based delivery.
Who else is going to spend more?
With 60% of US video ad buyers looking to increase their spend on data-driven TV, the next question would be, what other TV formats can count on increased ad spending over the next 12 months?
- OTT/CTV – 53% spending increase expected
- Addressable Linear TV – 50% expected growth
- Other Digital Video – 45% growth
- Traditional Linear TV – 28%
“Mostly considered for top-funnel marketing, data-driven linear (DDL) offers an opportunity to create efficiencies in what is most advertisers’ largest strategic budgets,” wrote Xandr. “More than half of advertisers in the US, where the main source of DDL funding is from a general advertising bucket, will increase DDL spending in the next 12 months. The growing appetite for this targeted format reflects its obvious advantages over traditional linear.”
Top benefits of buying into data
Xandr and Advertiser Perceptions survey respondents suggested that there are added benefits to buying data-driven TV in an automated fashion:
- 43% — The ability to define campaign parameters once and view a single proposal across media owners, including forecasted audience impressions and deduplicated reach
- 36% — The ability to activate one TV campaign across multiple media owners
- 35% — The ability to define target audiences across media owners
Defining audiences and projecting growth
Defining audiences is a key aspect of AdMall’s AudienceSCAN profiles, powered by SalesFuel. For example, if your advertisers are looking to reach OTT streaming service advertising responders, AudienceSCAN will show you data. For example, 46.4% of US adults have seen streaming TV advertising within the last 30 days that led them to take action. In addition, 35.0% of US adults get most of their TV programming through over-the-top streaming services (including Netflix, Amazon Prime and Hulu).
Another report from Advertiser Perceptions shows that OTT streaming services are set to benefit the most from the increase in video ad spend.
“Some 42% of respondents say they will increase their budgets in this area, with spend increasing an average of 15%,” wrote Advertiser Perceptions.
So, what does this mean for your advertisers? Data-driven TV is where they need to focus. While your clients will reach some of their target audience through traditional linear TV, they'll achieve better campaign results and ROI when they shift their spending into formats where they can define parameters and monitor audience impressions.
“Data and automation offer benefits in all phases, but team organization and technology have slowed adoptions,” wrote Xandr. “People and technology must move together, especially as video evolves. TV and digital buying processes and teams must adapt to realize the full value of [data-driven TV] convergence.”
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