As NewFronts launches their first personal edition in New York since 2019, streaming statistics are ready for 2021 and the market is officially booming.
The IAB, the industry group behind NewFronts, released its ninth annual report on online advertising consumption and found that the cost of connected TVs exploded to $ 15.2 billion, an increase of 57%. It predicts a 39% gain this year to $ 21.2 billion, which means a doubling of CTV spending since 2020.
The functionality of these streaming purchases is a draw, not surprising. Three out of four buyers said CTV is a “must buy”, identifying first-party brand data, location information about viewers and shopping data as important benefits.
Aside from college and NFL football, few areas of the conventional television landscape maintain or grow viewership. That, plus lingering effects from Covid and a number of well-established streaming options, led to a shift online.
IAB collaborated with the Standard Media Index and analytics firm Advertiser Perceptions on the report and surveyed about 400 video buyers at agencies and brands between February 15 and March 15.
Although CTV will account for 36% of the total time spent with linear TV and CTV combined in 2022, money currently allocated to CTV lags behind viewership, according to an estimate from eMarketer, and represents only
18% of all video ad dollars.
For advertisers, there are many more places to buy time online than there were three years ago. Since the end of 2019, Disney +, Peacock, HBO Max and Discovery + have been launched, and Paramount + has rebranded and expanded from CBS All Access. Netflix and Disney are the latest major streaming players to have announced plans to incorporate commercials along the way.
The month of May has traditionally seen a collision of traditional platforms and online platforms between NewFronts and the front pages of the TV industry. This year, as the US comes out of the worst Covid, there will be three personal days with NewFronts and a completely virtual day on Thursday. Broadcast TV networks, YouTube and Warner Bros. Discovery will head to New York scenes this week, May 16, for a series of high-profile pitches. For many traditional players, from NBCUniversal to Disney to Televisa Univision, linear ad sales will be combined with digital push.