A majority of advertisers already use some form of advanced TV — which includes addressable and interactive TV efforts, in their marketing efforts — but overall media budgets are still low.
A new study from the Interactive Advertising Bureau, which surveyed 255 brand and agency executives, says 78% of advertisers use such tools. But the study says the current median budgets for marketers for advanced TV are at a mere $1.4 million.
Still, 70% of advertisers expect to spend more on advanced TV within the next 12 months. The IAB says the money for advanced TV advertising will come from both TV budgets, which amount to 68%, and new “experimental” budgets, at 54%.
Addressable advertising is expected to grow to 38% for advertisers who use it sometimes, up from 28% who currently use it. Second-screen ads will rise to 35% from 23%; and interactive tags will climb to 30% from 21%.
Although budgets are low, the study expects 72% of those surveyed to see advanced TV becoming an important advertising platform within five years.
The benefits include better targeting capabilities — cited by 51% of respondents; the ability to reach consumers any time on any device, 38%; improved ROI, 37%; and ability to personalize or localize messages, 35%.
Challenges remain. There is “a lack of understanding of the advanced TV technical process,” with 35% of marketers pointing to this, followed by high cost concerns at 33%.
Source: Media Post