Digital Dollars Flowing to Advanced TV Campaigns, Report Shows

Streaming viewers are watching their favorite shows from the comfort of their living room couches, and online video advertisers are right there with them. A Q4 2016 report on the U.S. TV and video market from video advertising technology company Videology finds a 273 percent increase in linear TV spending during the previous 12 months. Also, programmatic took a big jump, as there’s been an 840 percent increase in the number of linear TV ad impressions available programmatically.

When targeting living room streamers, more than one-fourth of advanced TV buyers used their own first-party data. This data might include past purchase history, site visits, registration information, or loyalty club data. Using first-party data, Videology notes, allows brands to use their own relationships with their customers as a tool for serving relevant ads.

“Brands and agencies have a huge amount of owned data, created through their direct relationship with consumers,” notes Scott Ferber, Videology’s founder and CEO. “By layering this first-party customer data into TV campaigns, brands deliver a far more tailored and granular advertising experience, ultimately resulting in greater ROI on their ad spend. This should be, and is becoming, a priority for anyone with access to owned data. I expect we will see this trend grow exponentially in the coming years.”

Turning to desktop and mobile video advertisers, Videology finds 100 percent of campaigns used some kind of demographic targeting last quarter. The most common was geographic (85 percent);­­ behavioral (54 percent) which includes segments such as CPG, auto, or retail; and TV viewing (23 percent) where the most common segment followed the advertisers TV schedule.

The most common objective for an online video campaign in Q4 was VTR or view-thru rate, with 42 percent of advertisers choosing it. Next came viewability (31 percent) and CTR or click-thru rate (24 percent).

All data came from the Videology platform, which served 2.5 billion ad impressions in the three-month period. View the full Q4 2016 study results online (no registration required).


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