Addressable TV will claw back digital dollars as US advertisers soften to medium says ANA
US advertisers are poised to invest more in addressable TV this year, which could see spend previously earmarked for digital platforms slow, according to a fresh report the Association of National Advertisers (ANA) and Forrester.
As part of the study, which questioned around 130 ANA members (predominantly at the director level), 15% of respondents said they were already incorporating addressable and advanced TV advertising into their media plans.
A further 20% to 30% noted that they planned to test approaches to the channel in 2018.
94% of all advertisers questioned agreed that TV would become “more targetable” and personalized thanks to data driven approaches to ad buying become mainstream. Meanwhile, 84% agreed that TV buying will become more automated.
In the UK, broadcasters themselves are slightly further ahead than the US, with Sky and Virgin Media recently announcing an addressable TV partnership, and ITV rolling out its own solution.
In 2017, eMarketer forecasts placed Facebook and Google’s grip on US digital ad spend at 60%, however on the back of this report the ANA has suggested that increasing adoption of programmatic TV solutions from advertisers could potentially stem (or even reverse) the flow of money from digital pure players back into TV.
ANA claimed that with data-driven TV having reached an “inflection point” it will compel marketers, who are already calling into question the efficacy of digital, to rethink budgets.
Despite a clear shift to digital in recent years, when it came to long-term brand building the ANA said that 70% of marketers believed traditional TV to be the most effective platform, followed by social media at 52%, and online video sites like YouTube at 46%.
Mobile ad networks were found to be viewed as the least effective at 16%.
However, for short-term sales social media took the crown with 63% of marketers saying it was the most effective medium, followed by TV at 55%. TV network websites were ranked as the least effective in terms of driving short-term sales upticks at 23%, showing the channel still has plenty of work to do.