As part of our 2016 Digital & Media Predictions report, Millward Brown offered up seven key predictions for the year. In the coming months, as the marketplace continues to evolve, we’ll check in on those predictions through a series of posts. Today’s up-close prediction: Connected TV Won’t Kill Linear TV Advertising in 2016.
So…how is the prediction pacing?
Ask millennials about their television habits, and you’ll likely hear about television experiences via a form of connected TV (via a smart TV and/or through consoles such as Apple TVs, Roku, etc.) vs. traditional, linear options (i.e. broadcast/cable). That’s perhaps not shocking – as the year ticks on, projections for connected TV continue to grow overall as well. For example, according to annual Connected Life research (from Kantar partner TNS), the increase in the percentage of consumers intending to buy smart TV’s outpaced any other consumer device intention year over year. From an advertiser standpoint, consumer migration to connected TV offers marketers unique advertising opportunities and rich targeting capabilities through addressable TV segments.
That being said, as we enter the second half of the year, the prediction holds true – connected TV is not yet in a position to kill linear TV advertising. It simply doesn’t have the scale yet to tip the market. However, more and more advertisers are tuned in (pun intended) to its progress and consumers are adopting the technologies at a rapid pace. Connected TV extends the benefits that online video brings advertisers – most notably, the ability to provide data on behavior, with rich targeting capabilities that range from specific individualized information on demos to behavioral and purchasing insights. And, while connected TV does not yet have the scale and reach of online video or linear TV, the segments of connected TV that allow for addressable and targeted opportunities are pushing advertisers to consider it as a very viable advertising option.
At Millward Brown Digital, we continue to actively help clients gather insights on connected TV delivery as this transformation takes place, including working with Hulu, across platforms such as Roku and Playstation. In another instance, AOL leveraged Millward Brown Digital to measure effectiveness results across connected campaigns, including insights that connected TV drove a statistically significant difference of 10% between control and exposed cells within a target audience for a leading financial services campaign.
Measurement results from 2016 will be an invaluable part of connected TV’s momentum. While linear TV isn’t going anywhere anytime soon, connected TV is growing up with solid potential for continued growth and scale in the both the consumer and marketing landscape.