Marketers’ confidence in Advanced TV is expected to remain strong in 2023, as suggested by the findings of the European Marketers Survey from AudienceXpress, FreeWheel’s premium video sales house. One factor driving this is the growing number of investment opportunities in the Advanced TV space, with more ad-supported video on demand (AVOD) platforms and free ad-supported streaming services (FASTs) entering the market.
Additionally, the survey found almost nine in 10 respondents across five European countries plan to boost their budgets for AVOD and FASTs over the next year. Of those respondents, around half expect this spend to be redirected from digital budgets including online video, social, and display advertising.
With Advanced TV channels delivering both premium video environments akin to linear TV and advertising capabilities similar to that of digital, the clear line between traditional and online advertising is no longer so distinct. This has led to three misconceptions about the future of TV, which are necessary to address as another transformative year approaches for the TV and premium video advertising landscape.
Myth: Traditional programmatic solutions will help TV and premium video unlock full data-driven capabilities.
Truth: The TV and premium video ecosystem needs its own unique tools to meet marketers’ current data priorities. The digital landscape is on the brink of a major transformation with the third-party cookie and its identifier-centric alternatives being slowly phased out of programmatic. In a world without IDs, advertising ecosystems will depend on first-party data, which puts sellers and distributors in a strong position.
This is especially true in the TV landscape, where media companies have close connections with their audiences grounded in trust and supported by the quality content they offer viewers. To maximise the potential of this situation, the video advertising ecosystem must develop privacy-centric technologies that unify demand sources for sellers and make premium video inventory more accessible to buyers.
According to the AudienceXpress marketer survey, the ability to use automated solutions for media buying, campaign optimisation, and targeting audiences at scale is the top data priority (25%) for all kinds of marketing campaigns. This suggests that legacy programmatic solutions don’t fully address buyers’ needs – even for digital campaigns – and highlights the necessity of Advanced TV evolving in its own direction.
Myth: The removal of third-party cookies does not affect TV advertising
Truth: Although the third-party cookie has never been the linchpin of advertising for Advanced TV channels, its upcoming removal from the digital ecosystem does indeed impact the TV and premium video space.
Buyers, sellers, and technology providers alike will need to pay close attention to industry regulators as they continue to refine new approaches and solutions for Advanced TV. This is because today’s innovations need to be sustainable. Only by future-proofing the tools that meet both marketers’ expectations and broadcaster requirements can the ecosystem ensure Advanced TV flourishes in the years ahead. Interoperability will likely be necessary for making these solutions viable long term, as this is the key that will help marketers access more premium video inventory and unlock sellers’ ability to monetise it.
The end of third-party cookies also emphasises how privacy conscious audiences are now. Consumers today have a better understanding of how marketers and media companies use their data, but the ad industry must further educate viewers on the value exchange and demonstrate how sharing data improves the viewing experience. Plus, greater clarity around how audience data is used and protected will support viewers’ trust in Advanced TV channels.
So, while the end of third-party cookies won’t directly impact TV advertising capabilities, consumers’ focus on their privacy and regulatory bodies’ views on data practices will certainly influence Advanced TV’s future.
Myth: TV can’t be used for full-funnel marketing
Truth: Marketers may currently be concentrating on upper-funnel objectives, according to our research, with customer acquisition sitting on top of their priority lists (38%), but Advanced TV can generate impact throughout the marketing funnel.
Deeper analysis of the AudienceXpress survey findings reveals that agencies in particular are also prioritising customer retention and sustaining loyalty (27%); more so than advertisers (19%). As financial uncertainty continues to place pressure on businesses, agencies are possibly looking to balance long-term strategies with short-term gains for their clients.
Advanced TV can not only deliver strong brand storytelling through its highly impactful and engaging ad formats, but also drive action that supports mid- and lower-funnel goals. For example, retail marketers looking to boost consideration for a new product can use Advanced TV to generate uplifts to web traffic, while app marketers aiming to retain users can rely on it to keep audiences engaged with their app. Sophisticated attribution tools are able to tie consumer actions to Advanced TV campaigns, making these channels beneficial all along the marketing funnel.
To continue addressing marketers’ priorities, refining measurement capabilities should remain a key focus for the TV and premium video ecosystem. Verifying campaign results via a trusted, independent third party is considered the most important measurement priority (38%), closely followed by ensuring that campaign data is accurate (37%), and comparable across all premium video inventory (35%).
The future of TV will be driven by enabling marketers and media companies to make the most of valuable first-party data through solutions that deliver scale, ensure interoperability, and protect viewer privacy. This will realise the full potential of Advanced TV: a premium, trusted, and unique medium, powered by data, that will continue to delight buyers, sellers, and audiences alike.