In yet another sign that advertisers will shift marketing dollar from traditional TV to connected TV, agency executives surveyed by Pixability said they plan to invest more in CTV, even in an environment when some advertisers are being more conservative about spending in a cloudy economy.
YouTube, which is increasingly being watched on TV sets, is likely to be the recipient of a good share of those new CTV dollars.
Pixability found that 75% of agencies said they planned to spend more on connected TV. At the biggest agencies, intent to spend on CTV was even higher with 79% eying more CTV investment.
YouTube was the leading platform where agencies said they would be putting their dollars to reach CTV audiences, marking a shift from looking at YouTube as a social media platform.
At the biggest agencies, 75% said they would be investing client dollars on YouTube, followed by 70% who named Roku and 68% picking Peacock. Also on the list were Amazon Fire TV, Hulu, HBO Max (with ads), Samsung TV Plus, Paramount Plus, Tubi, Disney Plus, Pluto TV, Freevee, Discovery Plus and Sling TV.
“This data reflects what we’re hearing from our big customers,” said David George, CEO of Pixability. “While overall spend may be flat or even down in places, CTV spend will be increasing and YouTube will be playing an increasingly important role in CTV plans.”
All that CTV spending means linear TV budgets will decline. In the survey, 41% of agencies said they would be investing less in traditional TV, compared to 45% maintaining spending levels and 14% investing more.
The recent launch of ad-supported versions of Netflix and Disney Plus will have an impact on the market, with 39% of agencies saying they would be moving money from other CTV platforms to advertising on Netflix and 17% saying they would take money from traditional TV budgets.
The survey found that while the biggest agencies prioritize brand safety on YouTube, independent agencies first look at measurement and performance.
Media agency professionals estimate that roughly 36% of impressions would occur against unsuitable content if no brand suitability measures are implemented on YouTube, the report said. ■
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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