The Ongoing Conversion Of Linear TV Dollars To CTV Advertising

16
Dec
2021
12/16/2021

There’s an old saying by world-famous ice hockey player Wayne Gretzky, who once said, “I skate to where the puck is going to be, not where it has been.” While linear TV has traditionally dominated the TV ad buying space in years past, those dollars have consistently shifted by the masses to connected TV (CTV). According to an eMarketer study [1] from March 2021, this seismic shift will only grow larger each year as advertisers chase their desired audiences from broadcast and cable TV to streaming platforms, like Hulu and Roku.
 

‘Money Follows Eyeballs’ at an Accelerated Rate

This ongoing movement is the direct result of advertisers following after a qualified audience of viewers who choose to consume more CTV content each and every day. Albeit this likely does not come as a shock to most people, the accelerated rate at which this is occurring is worth noting.
 

Chart by Visualizer

 
The aforementioned eMarketer study estimates the following key industry changes by 2025:

  • Linear TV ad spending to decline annually from 2022 onward
  • CTV ad spending to increase annually by an average of 3.69 billion dollars from 2021-25
  • Combined US ad spending growth on linear and CTV will come entirely from CTV spending between now and 2025

 

Intrinsic Benefits to Rapid CTV Adoption

While the rising presence of viewership helps state the case for CTV ad spend, there are several inherent benefits to CTV advertising that make this a profitable strategy for advertisers to utilize in their omnichannel mix. In a recent study [2] co-published by Digiday and Innovid, the brand marketers and agency executives interviewed identified the following as benefits to CTV adoption:

  • Stronger connection between digital and TV
  • Precise audience targeting
  • Improved relevance
  • Comprehensive measurement and data insights
  • Engaging creative formats
  • Time and cost savings

The same study revealed a majority of marketers reported an increase in ROAS by shifting ad dollars to Connected TV. Simpli.fi’s transparent approach to reporting, household-level targeting offering, and cost-effective bidding strategies help our advertisers achieve their goals when placing buys and/or shifting dollars to CTV efforts.
 

How Simpli.fi’s CTV Offering Drives More Than Just Brand Awareness

While the initial impact of CTV has ordinarily been known to positively impact the business from a brand awareness point-of-view, the ability to drive performance via brand engagement (i.e., website visits and/or in-store visits) in a trackable manner will only become more and more important as this shift from linear TV continues.

Simpli.fi currently offers the ability to attribute online browser-based conversions, such as visiting an advertiser’s website and completing a form fill, adding a product to a shopping cart, or purchasing a product, for instance, for any size campaign. We also offer real-time foot traffic attribution with true store-level reporting. All of this can be tied back to the impression-level data which tell you which CTV device, at which time of the day, via which creative led to that conversion being counted. This then informs our real-time optimizations being made to help achieve and exceed campaign performance goals.
 

Skating to Where the Puck is Going

While viewership continually shifts towards CTV advertising, marketers need transparent reporting and strategic campaign setups to help successfully engage viewers in ways that can be both easily tracked and universally understood.

 
To learn more about on our industry-leading OTT/CTV solution for both targeting and attribution, reach out to us at hi@simpli.fi
 

[1] https://www.emarketer.com/content/tv-ad-measurement-2021
[2] https://info.innovid.com/blog/the-state-of-ctv-advertising-new-research-with-digiday