Interviews, insight & analysis on digital media & marketing

41% of advertisers believe ‘lack of understanding’ is key barrier to Connected TV adoption

Despite digital video ad spend continuing to increase rapidly in the UK, more than four in ten (41%) of digital video advertisers and buyers say that a lack of understanding of the ecosystem is one of the key barriers to greater adoption. In a study conducted by Xandr, more than half (57%) of advertisers cited lack of supply, and more than a third (35%) availability and quality of data, as the other top challenges.

In a bid to highlight and address these barriers, Xandr has released its 2021 CTV Guide to provide platforms and brands across the globe with actionable advice on CTV advertising. Insights in the guide are drawn from interviews with 900 senior video marketers and viewpoints of major companies in the space including OMG UK and Peach Media. The guide also highlights significant room for improvement when it comes to effectiveness of video advertising campaigns:

  • 50% of UK advertisers do not believe they are effectively reaching the right audiences compared to 35% in France, 37% in the US and 39% in Germany
  • 30% of UK advertisers say they are not effectively selecting the right media type to target audiences, such as CTV or social media, for campaigns
  • More than half (52%) of UK marketers are not effectively optimising campaigns, compared to 35% in Germany and 37% in the US
  • 43% of UK marketers say they are not delivering effective creative, compared to 30% in the US
  • Almost half (45%) of UK advertisers do not believe they effectively select the right content type such as news or lifestyle compared to less than a third (31%) in France

Austin Scott, Head of EMEA Video Marketplace Development at Xandr, said: “The connected TV opportunities are clear – so much so, that CTV, like TV, is fast gaining traction around the world and smart ad buyers are already contemplating their global CTV strategy. But, like any nascent technology, it is not without its challenges. That’s why we’ve launched our CTV Guide, to help buyers and sellers navigate and overcome the barriers to CTV, such as data accuracy, lack of understanding and supply, and ensure marketers effectively exploit opportunities in this new ‘golden age’ of TV.”

The survey makes clear that advertisers have high expectations of video platform partners. The primary concern in all regions is that it ensures brand safety, ranked most important by 83% of UK marketers. This is followed by prioritising user data privacy (73%), and inventory transparency (72%).

Asked specifically about the convergence of linear TV and digital buying, the biggest challenges likely to impact this in 2021 from the perspective of UK marketers are:

  • Ensuring data is accurate (48%)
  • Ensuring data is compliant with consumer data privacy initiatives (48%)
  • Poor quality data (42%)

Jason Trout, Global Chief Digital Officer, Peach, said: “To really thrive in the CTV space, you have to commit to the significant need for creative variations. With that comes a responsibility to ensure that users see appropriate advertising copy to consumer, engage with and feel drawn towards. Broadcasters would never allow the same ad to run in the same linear ad break, and certainly not with a similar competitor. The same rules should apply in the CTV world.

“We must be careful not to rely on broad templated creative executions in video. Context is a key attribute in determining if a commercial intervention jars or is seamless. It’s important that CTV campaigns maintain an emotional connection with the viewer; something brands can achieve with true creativity – not just rotating an end card and calling it ‘personalised’.”

Xandr’s CTV Guide is available to download here.

*Xandr is a client of Bluestripe Communications, owned by Bluestripe Group, the owner of NDA.


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