Digital advertising down 📉 , TV advertising up? 📈
According to Ad Age, connected TV offerings are driving a shift in dollars from ‘traditional’ digital offerings and into streaming TV offerings:
- CPG advertisers cut digital and social spend 20%+ YoY in 2022
- CPG advertisers are increasing spend on OTT streaming platforms by double-digits increases each quarter in 2022
Source: Pathmatics
Why is money shifting out of digital and into TV?
1. 🎯 Connecting TV ads allows advertisers to avoid double-advertising the same audiences:
“Audiences of the big platforms like Paramount+, Peacock, Hulu and Amazon Prime Video largely overlap. Smaller streaming platforms like Sling, Crackle and Tubi can help Tide deliver more reach…to find those audiences, Tide switched to programmatic media buying, finding unique connected TV IDs across all platforms, that could stop duplicating ad frequency, increase reach and save money.” — Procter & Gamble’s Marc S. Pritchard
2. 📺 ➡ 🛍 Retail networks allow CPG marketers to connect TV spend to in-store sales
“Kroger Precision Marketing in September announced it was opening its data marketplace to brands for use in targeting ads to shopper segments in CTV and monitoring how exposure to their ads affected sales across a variety of existing programmatic platforms.” — AdAge
3. But, balancing ROI-focus with brand messaging remains a challenge:
“My fear is that marketers — and I need to prevent myself from doing it — will just want to look at all the lower-funnel considerations…Performance marketing plays a very important role, but we want to build brands upfront. We need to build equity. I, as a marketer, need to put advertising into the world that builds brands, builds my distinctive proposition. But I also need to see returns.” — Gary Osifchin, chief marketing officer and general manager of hygiene for Reckitt
Digital advertising has offered lower returns in 2021/22 due to increased privacy laws and less ability to track online behavior via cookies.
With connected TV, it looks like marketers have found a new solution to tell their story and drive ROI.
