WHITE PAPER
From Spend to
Staffing: A Holistic
Look at Connected
TV Advertising.
Exclusive advertiser insights on the challenges, opportunities and
future of this performance channel.Introduction.
Connected TV (CTV) usage is on the up. Consumers are cutting cords and
making the transition to streaming services in ever increasing numbers—an
estimated 109.3 million households will view content on CTV in 2022. And,
in July of 2022, streaming services actually surpassed cable networks to
claim the largest share of U.S. TV viewing.
CTV viewership is increasing, providing massive opportunities for
advertisers. However, the technology isn’t without growing pains—some
brands and agencies struggle with measuring revenue from CTV advertising,
garnering company buy-in, staffing CTV-focused roles, tracking campaign
results and more.
This said, it’s not all doom and gloom on the Connected TV advertising
front. In fact, the channel is growing and constantly improving—
technologically it has become more sophisticated and intuitive, making CTV
advertising easier and more effective for brands and agencies alike. In turn,
advertisers are getting better at leveraging the channel to
drive performance.
Connected TV will continue to grow in popularity with consumers, so
advertisers need to learn how to best utilize the platform. To accomplish
this, it’s vital that you have a holistic understanding of CTV advertising—the
challenges, the opportunities, how it has improved and where it’s headed in
the future.
Note: The data referenced in this guide was sourced from a study done in
partnership with Ad Age Studio 30 in September of 2022. Table of
Contents.
4Where are Connected TV Advertisements
Being Delivered?
6How Advertisers Are Approaching Budgets
8The Human Side of CTV Advertising:
People and Staffing
10Measuring Results and Success
14Conclusion
FROM SPEND TO STAFFING: A HOLISTIC LOOK AT CONNECTED TV ADVERTISING o 3Where are Connected TV
Advertisements Being Delivered?
SVOD is on the rise, but AVOD continues to dominate the CTV
advertising space.
From HBO Max to Netflix, every major streaming service has introduced
an ad-supported subscription plan in the last year. This has been met with
mixed emotions from consumers, especially in regards to Netflix who
always promised to remain ad free. Despite the array of consumer feelings,
subscription video-on-demand (SVOD) is gaining momentum. So, it’s no
surprise that advertisers are increasing ad delivery on those platforms.
While there is a growing trend towards serving ads on SVOD services,
advertising-based video on demand (AVOD) currently holds the top spot
and is expected to continue as the dominant mode for placing ads on CTV.
All other modes of ad delivery are likely to decrease as time goes on.
FROM SPEND TO STAFFING: A HOLISTIC LOOK AT CONNECTED TV ADVERTISING o 4Where are Connected TV
Advertisements Being Delivered?
(Cont’d)
When it comes to where CTV ads are being delivered by advertisers and
seen by consumers, there are two major types of platforms to be aware of:
SVOD and AVOD. The difference between the two used to be fairly straight
forward—a subscription supported model as opposed to an ad-supported
one. But with more streaming services offering ad-supported subscription
tiers, the meaning of each term has become a bit murky. To stay competitive
in the CTV space, it’s important for advertisers to understand the
differences between the two types of platforms and know who the major
players are in each category.
MNTN Insight: SVOD vs. AVOD
Subscription Video on Demand Advertising-Based Video on Demand
(SVOD) (AVOD)
When using SVOD platforms, viewers pay
a monthly or annual fee which gives them AVOD refers to purely ad-supported streaming
access to a library of shows and movies— options with no subscription fee. Some popular
think Hulu, Disney+ and Netflix. In our study AVOD platforms include: Sling TV, Tubi, The
with Ad Age, SVOD refers to a “hybrid’ Roku Channel and Pluto TV.
model which has a lower-cost subscription
fee due to being ad supported.
FROM SPEND TO STAFFING: A HOLISTIC LOOK AT CONNECTED TV ADVERTISING o 5