Advertisers Should Spend 20-30% of TV Budget on Streaming and the Rest on Traditional TV

TV should still act as the foundation for most advertisers, but reach is highest when 20-30% of the budget is allocated to streaming, says the report from Comcast Advertising.

Comcast has released a new report aimed at marketers drawing up their ad spend budgets with an eye toward having the right balance between traditional TV and streaming platform.

According to the first edition of the Comcast Advertising Report, called Actionable Insights for the Modern TV Advertiser, the study, based on more than 20,000 campaigns, recommends that advertisers allocate 20-30% of their TV budget towards streaming advertising and the rest to traditional TV.

“For years, advertisers have been asking us how to best balance investments across traditional TV and streaming platforms in order to enhance campaign performance,” said James Rooke, General Manager, Effectv, which is part of Comcast Advertising’s sales division.

 
 

“Advertisers shouldn’t be making a guess or ‘going with their gut’ on this; rather, they should focus on the data. By looking at tens of thousands of campaigns across verticals and across budget amounts, the data is quite clear – TV should still act as the foundation for most advertisers, but reach is highest when 20-30% of the budget is allocated to streaming.”

Using proprietary data, the report provides a view into the current landscape from the perspective of viewers, buyers, and then sellers – culminating in a recommendation for the optimal balance of TV and streaming advertising.

Key findings

  • Viewers prefer live content on both TV and streaming. In fact, 89% of traditional TV viewing is spent watching live TV and 54% of digital video viewing is live
  • Viewers are exposed to more digital ads than ever before, as ad views on digital services increased by 45% from 2H20 to 2H21
  • Audience targeted campaigns have increased by over 50% year-over-year, as advertisers turn to audience targeting to reach viewers, at scale, across viewing platforms
  • Programmatic ad views have grown 80% year over year, as advertisers see programmatic buying as a way to reach specific audiences more efficiently.
  • There was also an increase in programmatic campaigns bought on a guaranteed basis.
  • As sellers move to programmatic models, they are working with an average of 13 different programmatic partners – and up to 30 in total

“This has been an incredible year for TV advertising’s progress and innovation, and this is clearly evident in the discussions we’ve having every day,” said Mark McKee, General Manager, FreeWheel, Comcast Advertising’s media and technology arm.

 
 

“From addressable, to programmatic, to first-party data – the opportunities are there for advertisers to do more with their budgets and connect better with sellers. It’s critical for them to look at the industry from all sides to understand where the opportunities lie, and this report can help them do that.”


Image: Glenn Carstens-Peters via Unsplash

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