Ad spending on connected TV jumped 84% in the first quarter of 2021 compared to the same quarter a year ago, according to a new report from TVSquared.
Ad impressions grew by the same amount, according to data from TVSquared’s ADvantage platform.
Compared to the fourth quarter of 2020, CTV impressions were up 14%, but spending was down slightly. TVSquared noted that the decline was likely the result of seasonality, with the prices usually highest during the competitive holiday season.
TVSquared expects CTV spending to continue to grow based on a survey of 100 brands and agency executives it conducted in June.
The survey found that more than 65% of those surveyed said they planned to make “moderate” increases of 5% to 20% to CTV spending in 2021. Another 20% said they would be making increases of more than 20%.
The main reason for advertising on streaming was incremental reach, according to the study, with 70% of respondents citing the ability to extend reach and engage with non-linear audiences.
The biggest challenge facing CTV advertisers is effective measurement and attribution, according to the study. Marketers were also concerned about understanding de-duplicated and incremental reach and worried about finding and reaching targeted audiences as streaming becomes more fragmented.
TVSquared said that dedicated streaming publishers had a 46% share of streaming impressions in 2020. DSPs had 21% of the market, with MVPDs accounting for 9%, national cable networks 8% and broadcast networks 7%.
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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.