ANA/BrightLine Study Reveals Marketers Are Increasing Spend on Connected TV
Measurement and Audience Scale Are Key Issues
NEW YORK (August 31, 2015) — Spend on connected TV is set to increase, as almost half of current connected advertisers plan to allocate more funds to the medium in the coming year, according to the ANA/BrightLine 2015 survey report "The Connected TV Opportunity."
Connected TV represents a television device connected to the internet. This includes smart TVs, where the connection is in-built, or any over-the-top (OTT) device/box such as Amazon Fire TV, Android TV, Apple TV, PlayStation, Roku, or Xbox. More than half of all U.S. homes (56 percent)* have a connected TV device, as TV programmers and web publishers are increasingly launching their content to connected TV. Viewing on OTT streaming devices grew 380 percent year-over-year in the first quarter of 2015.**
Key findings from the study include:
- There is growing demand for connected TV education.
Only 43 percent of marketers surveyed claim to be "very" familiar with connected TV/OTT, while just one in five (22 percent) responded that their company has engaged in connected TV advertising over the past year. "Lack of familiarity" was cited as the top barrier to entry among those respondents who are not currently engaged in connected TV advertising. Of this group, 13 percent intend to engage in connected TV over the next year, while 59 percent are unsure. - Spend is growing and likely to be reallocated from other TV and digital activity.
Budgets for connected TV are currently modest. A little under half of respondents (46 percent) allocate 1 percent or less of their total TV advertising budget to connected TV. However, nearly half of current connected TV advertisers (48 percent) plan to allocate more budget to connected TV in the next year. The dollars are likely to come from other TV activity (71 percent) and digital media (37 percent). - Audience targeting is the top benefit of connected TV.
Fifty percent of respondents cite audience targeting as the top benefit of connected TV. With connected TV, television buyers can target audiences on the same level as their digital counterparts. - Measurement and audience penetration are key issues.
The top barriers preventing greater spending on connected TV among users are the lack of reliable measurement metrics and small-scale audience penetration.
Bob Liodice, president and CEO of the ANA, commented, "Connected TV is a great opportunity for the television advertising industry, as it leverages current consumer viewing behavior and provides digital-like targeting. But measurement issues need to be addressed to optimize future growth."
Jacqueline Corbelli, co-founder and CEO of BrightLine, added, "The adoption and usage statistics in this report show that TV viewers are intent on bringing the dynamic, personalized experience they can achieve in digital and in mobile to the television. Marketers' responses to this survey are very well aligned with the growth in activity, the size of media spend, and the general excitement for connected/OTT TV advertising we are experiencing here at BrightLine."
*Leichtman Research Group
**FreeWheel
About the Study
This study of ANA members took place in June 2015. In total, 215 client-side marketers are represented in this survey. Of those, 51 percent are "senior marketers" (director level and above) and 49 percent are "junior marketers" (manager level and below). On average, respondents to this survey have 15 years of experience in marketing.
About the ANA
The mission of the ANA (Association of National Advertisers) is to drive growth for marketing professionals, brands and businesses, the industry, and humanity. The ANA serves the marketing needs of 20,000 brands by leveraging the 12-point ANA Growth Agenda, which has been endorsed by the Global CMO Growth Council. The ANA’s membership consists of U.S. and international companies, including client-side marketers, nonprofits, fundraisers, and marketing solutions providers (data science and technology companies, ad agencies, publishers, media companies, suppliers, and vendors). The ANA creates Marketing Growth Champions by serving, educating, and advocating for more than 50,000 industry members that collectively invest more than $400 billion in marketing and advertising annually.
About BrightLine
BrightLine is the lead innovator and global provider of rich media solutions on TV, for the entertainment and advertising industries. BrightLine's universal design and execution framework is fueled by data-driven experiences proven to increase consumer engagement, brand recall, purchase intent, and sales. With over 600 executed programs in over 90 million households, the company transforms passive 30-second commercials into dynamic, superior video for rich viewer-driven brand interactions. BrightLine's proprietary IQ™ software suite aggregates consumer behavior trends and historical results to inform the design implementation of integrated advertising experiences. BrightLine's platform agnostic solutions launch across all connected and legacy television platforms, including cable and satellite, telecom companies, gaming consoles, connected televisions, smartphones, and tablets. Learn more about how BrightLine is revolutionizing TV advertising at www.brightline.tv or follow them on Twitter @BrightLine_TV.