Connected TV taking search and social budgets

Industry Contributor 6 May 2019 - 2 min read

Connected TV taking search and social budgets

By Paul McIntyre - Executive Editor

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Tags: connected TV, addressable TV, advertising, brands, marketing, Google, Facebook, search, social, channel planning, metrics, performance marketing, brand marketing

Marketers should think beyond CPMs when comparing TV advertising to connected and/or addressable TV rates because the two are different beasts. Meanwhile, direct-to-consumer (DTC) and challenger brands are shifting strategies and budgets honed on Google and Facebook to connected TV as social ad performance plateaus (Digiday)

Key points:

Cable TV CPMs may go for $10-$12 versus $20-$40+ for advanced TV buys
That makes traditional TV appear cheaper, but it does not offer such precise targeting, whereas advanced TV can eliminate wastage, improving cost effectiveness
DTCs and challengers are building brands through connected TV. They can spend less by piecing together audiences, targeting more smartly
Challenger brands on digital consultancy Varick’s books shifted 15% of search and social budgets to connected TV in 2018, planning 25-30% in 2019, says VP of marketing, Kate Boulos
Performance marketers eschewing traditional reach and frequency TV metrics for outcomes like website traffic and store footfall, says Jesse Math, of brand performance consultancy, ForwardPMX

Challenger brands are applying strategies, metrics and budgets developed for search and social to connected TV and the performance versus brand building conversations will continue.

If these marketers continue to shift budget envelopes to connected TV, platforms may take a hit - but it'll be small. While much of Google and Facebook’s revenue comes from smaller brands, connected TV networks are unlikely to scoop up krill in anywhere near the volumes ingested by global self-serve platforms that accommodate even planktonic business budgets.

But if advanced TV can deliver performance and brand outcomes, marketers will spend more money with those networks, potentially slowing or even reversing the outflow of TV dollars. That scenario still feels highly theoretical and hinges on making connected and addressable TV easy to buy and measure, as well as building scale. But the smart networks are working overtime in the face of existential threats – and brand safety issues inherent to UGC remain a key risk for marketers.