Global TV advertising budgets are shifting from
linear to digital and will kick into high gear next year, driven by consumers
who are turning to OTT, a 2021 Global Video Advertising Trends report from SpotX predicted.
“We’re in the midst of the ‘connected decade’, especially as viewership
and adoption of connected TV (CTV) and OTT continue to skyrocket,” said Mike
Shehan, Co-founder and CEO of SpotX. “Record numbers are tuning in, and at this
rate, cord-cutting households are on track to eclipse traditional pay TV by
2024.”
SpotX believes advertisers are beginning to understand
how to activate data for efficient audience targeting while still achieving
scale in OTT. It also sees more advertisers recalibrating their media plans
towards digital, while mobile adoption in Asia is encouraging increased OTT
spend.
The accelerated shift in consumer viewing habits
will expedite the development of a post-cable ecosystem as new
subscription offerings from legacy giants pull more traditional TV households
into the digital future, predicted SpotX.
It added that along with changing
viewing habits, programmatic budgets will surge with the rise in CTV streaming,
as well as advancements in addressable technology that are bringing linear
inventory into digital buying workflows.
“There is a massive
opportunity to apply digital technologies and audience data to make broadcast
ads targetable and more relevant. The category is finally taking off, with more
inventory available and the programmatic pipes built out, and you can expect to
see more linear TV budgets transacted digitally,” the report said.
In 2021, SpotX said media owners, advertisers
and smart TV manufacturers will focus on the potential for audience data to
improve inventory values, enhance campaign performance, and deliver more
relevant consumer experiences.
While compiling the report, SpotX
gathered insights from industry leaders that include Acxiom, AMC Networks, CCI,
Discovery, DISH Media, GroupM, Samsung Ads, The Trade Desk, and TransUnion, to
share their predictions about what’s next for TV and video in the upcoming
year.