In the US, the majority of advertisers (78%) have already leveraged some form of advanced TV in their marketing efforts, according to the IAB report Advanced TV: Ad Buyer Perceptions.
The report is a survey of 255 brand and agency decision-makers published today by the Interactive Advertising Bureau (IAB) and its Digital Video Center of Excellence, and sponsored by Samsung and AT&T AdWorks. The survey, conducted by Advertiser Perceptions, reveals that although the current median budget allocation for advanced TV is a modest $1.4 million, 70% of advertisers expect to spend more on the medium within the next 12 months.
Funding of advanced TV advertising is expected to come from both TV budgets (68%) and expanded or experimental ad budgets (54%). Use of most advanced TV ad formats is expected to increase in the next year, especially addressable advertising (38%, up from 28% who currently use it), second screen ads (35% from 23%) and interactive tags (30% from 21%).
Nearly three-quarters (72%) of those surveyed sees advanced TV becoming an important advertising platform within five years. Several of its strongest benefits — echoing longstanding digital marketing characteristics — were called out, including: better targeting capabilities (51%); ability to reach consumers anytime on any device (38%); improved ROI (37%) and the ability to personalise or localise messages (35%)
Advertisers also noted obstacles that may challenge advanced TV’s growth as a go-to marketing platform, with marketplace confusion about the medium singled out. Nearly three out of five weren’t sure about the differences between advanced TV and connected TV. A lack of understanding of the advanced TV technical process was also cited (35%), followed by high cost concerns (33%).
“Advanced TV advertising provides a captivating digital forum to reach consumers,” said Anna Bager, SVP and general manager, Mobile and Video, IAB. “In the coming years, a growing percentage of advertising dollars will be directed towards advanced TV and other digital video advertising, as marketers and agencies are able to embrace this new medium’s blending of traditional television with digital attributes.”