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Buyers Expect Advanced Advertising to Grow: Study

Advertisers and media agencies plan to increase their advanced TV advertising activities, according to a new survey conducted on behalf of advertising software firm Videology by Advertiser Perceptions.

The survey found that 57% of buyers said they have used advanced TV advertising in the past 12 months, with 75% saying they plan to in the next 12 months.

Of those currently spending in advanced TV advertising, 57% said they plan to increase their data-enabled TV budget this year.

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Linear advertising was employed by 88% of the respondents in the past 12 months. Only 77% said they plan to use linear TV in the next 12 months.

A majority of respondents—64%—said they expect more than half of TV buying will be programmatic within 3 to 5 years.

"Advertisers and agencies are rapidly seeing the benefit of applying data and automation to their linear TV buys because it gives them the best of both worlds: the reach and viewing experience of TV, with the strategic targeting of digital," says Scott Ferber, founder and CEO, Videology.

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"While this survey focused on the demand side, we are seeing similar enthusiasm from media companies who see data-enablement as a way of capturing greater value from their audiences, both in TV and across devices. With buyers and sellers both recognizing the value in more addressable, audience-based advertising, the marketplace can now truly accelerate,” said Ferber.

Though the survey indicates advanced advertising is growing, there are still many buyers with questions.

More than half of the advertisers and agency execs said they don’t understand the difference between data-enabled TV and addressable TV. And 20% said their advanced advertising is still being funded from a test or experimental budget.

"Advanced TV in all its forms is growing, and it’s shifting the way advertisers and agencies do business. I expect these changes to continue to grow at a rapid pace, including shifts in this year's Upfronts," said Andy Sippel, senior VP, consulting, Advertiser Perceptions.

The survey included 165 decision-makers from U.S. advertisers and agencies. The full survey can be found here.

(Photo via FamZoo Staff's Flickr. Image taken on May 25, 2016 and used per Creative Commons 2.0 license. The photo was cropped to fit 16x9 aspect ratio.)

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.