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Ad spend on connected TV globally slated to grow in 2018

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NEW DELHI: A new report has found that connected TV advertising is growing and 29 per cent of global advertisers and agencies plan to increase their connected TV advertising spend in 2018.

In fact, 65 per cent of the respondents said they will maintain their current spend suggesting they were satisfied with connected TV performance to date and only 6 per cent planned to decrease their connected TV spend in the year ahead, according to a recent survey by US-based Videology Inc commissioned through Advertiser Perceptions.

Explaining the phenomenon, Videology said data-based TV options are evolving every year and it expected more dollars will be shifted from traditional linear TV to advanced TV strategies in the months and years ahead as these strategies provide the ability to bring data and measurement to the entire marketing funnel when part of a holistic, cross-screen video approach.

What’s connected TV? According to BBC, a connected TV uses a consumer’s broadband internet connection to bring the kind of video content one gets on a computer (including on-demand services) but back where it belongs—on the TV. A consumer can sit back and watch the best of both the internet and television from the comfort of one’s living room. Some connected TV services allow consumers to use the electronic programme guide or EPG to scroll back in time to see if there are any shows from the past seven days that one has missed and would like to catch up on.

Though the Videology survey didn’t mention specific markets, it’s still unclear how such a trend would play out in India. Still, for the records, SonyLIV, an OTT platform that combines streaming of linear TV programmes and on video-on-demand service in India, had said it got separate advertisers for its streaming services involving some sporting programmes, which were different from the ones who advertised on Sony’s traditional TV channels in India.

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Videology also added that its Q4 2017 TV and Video Market At-A-Glance Report had revealed that since 2015, there has been a 175 per cent increase in the amount of ad requests for connected TV in the Videology platform. The report also found that the amount of impressions running exclusively on connected TV grew 230 per cent from last quarter.

According to Videology, the idea of “cross-screen” is key as “agnostic” video planning is another trend uncovered in the Q4 Video Market At-A-Glance report. In Q4, 97 per cent of campaigns run on the Videology platform ran on multiple screens, with 60 per cent of those including a connected TV component.

As cross-screen strategies continue to grow, and to include connected TV alongside digital video, mobile, and linear TV, advertisers can expect to drive greater results, Videology said, adding there were still a few hurdles to overcome.

In the Advertiser Perceptions research, 51 per cent of respondents cited consistent cross-screen measurement as their biggest challenge in regard to TV and video advertising, while 44 per cent said they were challenged with how to best leverage data, and over 1/3 said their biggest challenge was “lack of clarity/understanding of what’s available and how to execute.”

“As we move towards an industry turning point for data-enabled, advanced TV advertising, there is still room for improvement in terms of data, measurement and education, and many in the ecosystem (like Videology) have built solutions to do just that. In the meantime, increased adoption of connected TV and other advanced TV channels is a step in the right direction,” Videology said in a blog.

Videology Inc. is a company specialising in TV and video advertising. The company’s global technology helps marketers and media companies manage, measure and optimise digital video and TV advertising to drive greater results in today’s converged media landscape.

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