NEW YORK—The percentage of advertisers who plan on using data-enabled advertising for their TV ad buys has been growing at a 42% compound annual growth rate for the past three years. By 2020, approximately 40% will use data (to improve planning, targeting and/or analyze attribution) to determine where they place their TV ads according to a new report from Blockgraph, an industry datasharing blockchain-based initiative led by Comcast subsidiary FreeWheel .
This is double the 20% increase in 2018, but for broadcasters to take advantage of this trend they need to adopt new strategies that take a more holistic view of consumer preferences, according to Blockgraph.
Challenges include :
● Inadequate consumer profiles that prevent advertisers from developing a “360-degree view” of their audiences (only 20% of advertisers said they could do this);
● A complex ecosystem of data ownership and sharing that creates an environment that can discourage advertisers from sharing data for fear of leaks to competition;
● Consumer privacy concerns (79% of advertisers are concerned about protecting consumer data, up 10 % from 2018), and
● The use of third-party providers to perform data matching outside the media supply chain prompts inefficiencies and longer turnaround times.
Jason Manningham, general manager of Blockgraph, said the results of their survey illustrate the unique and complex nature of the TV advertising business when compared to digital.
“The findings confirmed that advertisers are eager to bring additional data to TV, similar to their use of data in digital media. Yet, there is also the recognition that TV is different,” he said. “So, while they are bringing more data to TV, the growth, albeit strong, is actually tempered a bit by today’s challenges.”
Blockgraph’s white paper is available here.