Advertisers in Australia are banking on Connected TV (CTV) and will soon be spending more on the medium than traditional linear TV.
And for good reason. Between January 2016 and March 2017, CTV connected 351 per cent as the four major free-to-air broadcasters made significant investments.
New research by marketing software company dataxu and market research agency Sapio shows the breakdown of spend on TV advertising in Australia is rapidly changing as the rise of CTV (TV connected to the internet) and OTT (streaming services) continues.
Traditional linear TV still brings in the most advertising dollars (21 per cent), closely followed by CTV (19-20 per cent), Video on Demand (16 per cent) and OTT (14 per cent).
While CTV hasn’t yet overtaken traditional TV, it soon will, with the research predicting investment in the space to increase by 30 per cent over the next five years.
Talking about Advanced TV
In a separate report, dataxu discusses the “many flavours” of Advanced TV for advertisers, which includes connected TV.
It also discusses the implementation of programmatic on traditional TV, where advertising is aired based on data-defined audience pools.
“Television advertising is no longer limited to reaching the right demographic segments during the right dayparts within the right linear programming,” says dataxu.