Beware, Broadcast TV: Connected Advertising ‘Performs Better’


Consider it a warning from an industry that wants your advertising dollars.

A new study released today by a video advertising platform invested in the fast-growing Connected TV (CTV) space finds that “CTV advertising performs better than linear TV across key indicators.”

It’s an illuminating look at the massive PR push the nascent CTV is putting into bashing traditional “linear” television.

The study, which is available in full here, was conducted by Tremor International’s Unruly unit. “Nearly 1,800 U.S. consumers” were queried in July 2020 for this study.

With CTV undoubtedly accelerating, and the COVID-19 pandemic fueling this rise in consumption, ad dollars are apparently not keeping pace.

Enter Unruly and sister brand Tremor Video, who have released data designed to benefit their respective businesses.

“In 2020, 3.4% of US marketers’ total ad spending will go on CTV — and that is
only forecasted to grow to 4.7% in 2023,” Unruly says.

However, “as CTV content consumption continues to accelerate, marketers are trailing behind with their media plans.”

Enter the bubble, which is growing more reminiscent of the “dot-bomb” era of 20 years ago, when the internet’s earliest players crashed in the months following the 2000 Consumer Electronics Show in Las Vegas.

With CTV growth at a breakneck pace, ad dollars are essential for its continued health. Given the ad landscape and struggles already seen at broadcast TV in non-political years, offset by retransmission consent fees, is CTV ready to repeat what Silicon Valley saw two decades in the past?

While those questions are big ones to ponder, the Unruly study finds that after seeing an ad on TV, compared to linear TV viewers, ad-supported CTV users are:

  •  71% more likely to tell a friend about a brand
  •  53% more likely to search for a brand
  •  48% more likely to have an improved opinion of the brand
  •  52% more likely to buy a product
  •  45% more likely to visit a store or website

“As the pandemic has rapidly accelerated the growth of CTV, it’s more important than
ever before that brands understand and embrace the medium,” the report authors state.

Indeed. It’s vitally important for CTV to monetize its growth, before it is too late.

That said, additional findings provide some keen insights into how broadcast TV may improve on perceived weaknesses that are driving CTV consumption:

  • 73% of US consumers say they would prefer to watch their favorite TV show for
    free with ads rather than pay for an ad-free experience
  • 65% actively seek ways to watch TV programs and films free of charge
  • 74% of 35-44 year olds actively seek free ad-supported TV content, followed by
    71% of those ages 45-54 and 63% for those 55+ — these groups were actually more likely to seek free ad-supported TV content than younger generations 25-34 year olds (62%) and 18-24 year olds (57%)
  •  64% of consumers in the US plan to reduce the amount they pay for TV services — 44% plan to do so by reducing paid subscriptions and 42% plan to cancel cable TV

Unruly VP/Insights and Solutions Terence Scroope says, “U.S. consumers’ pivot to CTV is an opportunity for brands to reach audiences at scale in a highly targeted, personalized way that has, until now, not been possible.”

He further discloses that, “together, Unruly and sister brand Tremor Video, offer advertisers the most cutting-edge CTV advertising solutions.”

As such, this “research” is a polished ad for an industry craving growth.

For broadcast TV, that very much means coming after your clients.