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Posted on 
December 15, 2022

TV Deserves More Ad Spend

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Company
Convergent TV
With more data available than ever before, attention should be better monetized.

It has been said that hindsight is 20/20. It seems that the same rule applies to how marketers allocate their advertising spend. Ten years ago, in her now famous Internet Trends Report, Mary Meeker identified a $30Bn opportunity for desktop and mobile ad spend in the US—highlighting how these vehicles accounted for 25% and 20% of time spent but only 22% and 4% of ad spend respectively.

Fast-forward to today and the tables have turned: Mobile and desktop capture 68% of ad spend despite only accounting for 50% of total time spent - this is simply thanks to the tech platforms’ ability to leverage data-driven insights.

Comparison of % time. spent in media vs. ad spend (US)

But what about Linear TV and CTV? They account for 37% of time spent yet only capture 25% of all ad spend—representing a massive $45Bn untapped opportunity in the US alone.  

Convergent TV ad spend now falls short of consumer habits

So what should marketers be doing about this, especially given the market headwinds and more challenging economic environment?

The good news is that TV - cable/satellite, virtual MVPDs, CTV-driven FASTs, AVOD apps, and more - are all increasingly being delivered over IP, with more data available, and new algorithms being used, all capable of fine-tuning marketing strategies to drive intended results. Therefore, all are fully measurable and capable of attributing brand KPI outcomes to delivered impressions, while also being addressable to specific individuals and households. Furthermore, since TV distribution is not reliant on the pipes of Google (Android) or Apple (iOS), like desktop and mobile are, it is not under third party control and subject to the whims and desires to use privacy regulations as both a self-serving sword and shield.

Instead, the increasingly smart TV-dominated landscape is more diverse, and TV content distributors and ISP service providers appear to be working together to take a fundamentally more collaborative approach toward how they allow the unrivaled accuracy of deterministic household data to be used, while also prioritizing data security and the privacy of their subscribers. Pair that with advancements in clean room and collaboration technology and we just may be coming full circle and again entering the new golden age of “TV” advertising, this time driven by what was once desktop and mobile’s secret weapon—data.

As TV continues to become more data-driven, and enhanced performance and ROI become a must have, it’s the right time for marketers to again reassess the way they allocate their ad budgets. And while hindsight’s not always 20/20, you can clearly see the money on the table if you know where to look.

Happy spending! 💰💳
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Jason Manningham is Blockgraph's CEO and Co-Founder.

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