Brands only have to reallocate a small portion of their total TV impressions from linear to connected TV (CTV) in order to enjoy significant efficiencies, according to a study from LG’s advertising arm, LG Ad Solutions, and TV measurement company iSpot.tv.
The research, which looked at 224.2 billion impressions from 87 brands across 12 industries, found that shifting just 6.3% of impressions from linear to CTV results in more balanced frequency, broader reach, and “significantly” higher conversion rates.
However, top-performing brands are already taking this a step further, allocating an average of 23.7% of their TV impressions to CTV, compared to 17.4% for other brands.
The study was carried out in response to linear TV continuing to dominate ad spending at 67.5% of total TV ad budgets, despite viewers spending only 54.2% of their total TV time on the platform.
“Modern marketers and media planners need to make every invested dollar work harder, now more than ever before,” said Tony Marlow, CMO at LG Ad Solutions. “This study underscores the need for precision in media planning – finding the optimal efficiency point where CTV and linear TV work in harmony to deliver maximum performance while minimizing ad exposure wastage. The findings suggest that many brands may be over-invested in cable and broadcast, leaving room for CTV to drive incremental reach, deeper engagement and stronger outcomes for advertisers focused on results.”
On the back of their study, LG Ad Solutions and iSpot have expanded their partnership to deliver “enhanced measurement and reporting capabilities,” including third-party validation of reach and frequency, mid-flight performance insights, sub-category analysis, and localised measurement solutions.
“As the TV landscape evolves toward streaming, this study demonstrates the significant impact of reallocating impressions strategically,” said David Coletti, SVP of Research and Insights at iSpot. “This research underscores how our partnership with LG Ad Solutions equips advertisers with actionable insights and advanced tools to drive performance in this transformative era of television.”
*LG Ad Solutions is a client of Bluestripe Communications, owned by Bluestripe Group, publisher of NDA
