NEW YORK: Most advertisers have already leveraged some form of advanced TV in their marketing efforts and most expect it will become a significant advertising platform within five years, a new report says.
A survey of 255 brand and agency decision-makers by the Interactive Advertising Bureau (IAB) and its Digital Video Center of Excellence, found that 78% had used advanced TV, which includes non-traditional television consumption methods such as time-shifting on DVRs, VOD and interactive television, as well as enhanced cross-device viewing experiences like TV everywhere and over-the-top (OTT) viewing.
Around seven in ten (72%) saw its importance increasing and the same proportion (70%) expected to be spending more on the medium within the next 12 months; the current median budget allocation for advanced TV is a modest $1.4m.
Funding will likely come from two main sources: TV budgets (68%) will be raided as will expanded or experimental ad budgets (54%).
Respondents identified several benefits, including better targeting capabilities (51%), the ability to reach consumers anytime on any device (38%), improved ROI (37%) and the ability to personalise or localise messages (35%).
And those were reflected in the advanced TV ad formats slated for increased use. Some 38% of respondents anticipated using addressable advertising, up from the current figure of 28%; equivalent figures for second screen ads were 35%, up from 23%, and interactive tags 30%, up from 21%.
"Advanced TV advertising provides a captivating digital forum to reach consumers," said Anna Bager, svp & 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," she added.
A degree of education may be required before that can happen, however, as there remains some confusion about the medium.
Nearly three out of five surveyed 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%).
Data sourced from IAB; additional content by Warc staff