Report: UK marketers to increase FAST, AVoD spend

November 14, 2023

 

AudienceXpress, FreeWheel’s video sales house, has announced the findings from the fourth iteration of its Advanced TV Uncovered study, conducted by independent media research firm CoLab Media Consulting.

The study explored UK marketers’ spending plans and objectives for the year ahead. It uncovered significant optimism for Advanced TV, especially regarding AVoD and FAST budgets. The findings revealed advertisers’ and agencies’ current priorities, alongside key growth drivers and inhibitors for investment in Advanced TV channels, which include VoD, BVoD, Connected TV, OTT and addressable linear TV.

Eyes are on new measurement solutions as GRPs lose their appeal

Marketers are focusing on short-term gains and consumers’ loyalty, with acquiring and winning back customers the top overall marketing objective for 69 % of those surveyed. Growing revenue came second (61 %), and profit growth third (46 %).

When asked about their media strategy priorities, new measurement solutions came first for 70 % of respondents. Evaluating their measurement priorities, 57 % of respondents cite the ability to optimise campaign performance in-flight. This is in line with their overall marketing objectives, with UK marketers keen to make quick adjustments to their campaigns to increase efficiency and regain customer trust and loyalty.

With new metrics attracting interest, there is little surprise to see 54 % of UK marketer respondents ready to move away from gross rating points (GRPs).

Data priorities, meanwhile, remain the same as last year. UK marketers want automated technology to better drive efficiency buys and enhance marketing campaigns. Frequency capping and reach extension are also high on their agenda (58 %), particularly with agencies (70 %).

Agencies lead bullish approach to Advanced TV spend in 2024

More than eight out of 10 UK marketers (83 per cent) surveyed expect growth in Advanced TV spend over the next 12 months, compared to 70 per cent last year, with agencies leading this upward trend.

Almost nine in 10 (89 %) expect to spend more on FAST and AVoD channels, with almost a quarter of advertisers surveyed looking to fund this using TV or digital display budgets and 27 % of agencies surveyed preferring to use social budgets.

Reach extension is top driver of Advanced TV spend

With the increasing shift to a mix of digital services and platforms, alongside the big screen, the opportunity to extend the reach of traditional TV campaigns has become the top driver of advanced TV spend for marketers (60 %). Advanced TV brand-safe environment was also rated key by 50 % of those surveyed, closely followed by its ability to drive higher ad effectiveness (49 %). The importance of Advanced TV as a premium advertising environment, especially with the decline of third-party cookies, is recognised by 61 % of marketer respondents.

“It is incredibly positive to see UK marketer expectations rise for Advanced TV investment, jumping +13 % since our last survey,” commented Stefanie Briec, Director, Head of Demand Sales UK & INTL at FreeWheel. “There is a clear focus in the UK market on measuring Advanced TV’s effectiveness, with advertisers and agencies especially keen to optimise their campaign performance in-flight. The emergence of new metrics such as attention could present a strong proof point for these channels’ impact and value for buyers, helping to justify further investment.”

www.advanced-television.com