Optimizing SEO: 25% of CTV Ad Inventory Exclusive to Linear TV
The landscape of TV advertising is undergoing a significant shift as streaming TV gains momentum in the advertising world. While linear TV still captures a substantial portion of TV viewing, the focus and excitement of advertisers are increasingly directed towards streaming platforms. However, amidst the rush to invest in streaming inventory, advertisers may be overlooking crucial distinctions between what constitutes streaming content and what falls under the realm of linear TV.
Many people automatically categorize content delivered through platforms like Amazon Prime Video as streaming. Yet, when considering content delivered through a live feed, such as Thursday Night Football, where viewers engage with the content in real-time, the distinction becomes blurred. This ambiguity in terminology complicates the understanding of the streaming landscape.
The complexity extends to Connected TV (CTV) advertising, which is now accessible in nearly 90% of US households and occupies a significant portion of viewing time. Surprisingly, only 40% of CTV audiences are exposed to ads within this environment. Furthermore, a considerable portion of the ad inventory reaching this 40% is actually sold through linear channels, particularly prevalent in FAST networks, contributing to 20%-25% of ad-supported streaming.
A closer look at the buying dynamics reveals an interesting scenario. Consider a prime-time program airing simultaneously on linear TV and a FAST channel. The commercial time within this program is divided between national and local sales. While the local ad time is transitioned to the FAST platform for sales, the national ad time remains sold through linear channels. This means that despite being distributed as streaming content, the ad inventory is predominantly sold as linear, challenging the classification of this inventory as streaming from an advertiser’s perspective.
In fact, a significant portion of ad impressions delivered via CTV are essentially in broadcast. This discrepancy highlights the limited availability of "true streaming" inventory through platforms that promise to connect advertisers with audiences. Ad buyers aiming to access the bulk of inventory on FAST platforms often need to make linear purchases, revealing that a substantial part of ad-supported streaming can only be acquired through linear channels.
The allure of streaming inventory should be weighed against the efficiency and scale offered by linear TV advertising. Linear TV continues to present a valuable opportunity for advertisers to reach audiences effectively and affordably. By solely focusing on streaming, advertisers risk competing for a small fraction of impressions, missing out on the broader reach and cost-effective air time that linear TV can provide.
As the TV advertising landscape evolves, understanding the nuances between linear and streaming platforms is crucial for advertisers to make informed decisions and optimize their media plans effectively. Balancing the benefits of both linear and streaming inventory can lead to a more comprehensive and successful advertising strategy in reaching target audiences.