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In the face of economic uncertainty, advertisers still want premium experiences.
Today, Comcast Advertising, the ad sales division of Comcast Cable, announced the second installment of its annual Comcast Advertising Report.
The study provides insights on engagement and consumption trends across streaming and linear TV advertising, also making actionable recommendations and predictions based on analysis of billions of impressions from Comcast Cable’s ad sales division, Effectv; its ad technology platform, FreeWheel; and through commissioned research into viewing and buying habits from the company’s research partners.
Among the significant findings, the report notes that 94% of advertisers anticipate maintaining or increasing spend on premium streaming in the next 12 months. The report also found that advertisers prefer premium video environments, as viewers are 58% more likely to remember ads from premium video when compared to user-generated video.
“The industry continues to transform at break-neck speed toward a more data-driven, automated approach to buying and selling advertising,” James Rooke, president of Comcast Advertising, said in a statement. “As this transformation accelerates, the value of trusted, transparent and engaging viewing environments has never been more important.”
And though the industry as a whole has been leaning more into streaming, traditional TV still has its merits.
Linear TV is notably facing an uphill battle in the marketplace, with lower demand and falling CPMs leading to the slowest upfront market in years in 2023. However, Comcast’s findings note that traditional linear and live TV is staying as a core strategy in many media plans, with 80% of advertisers planning on maintaining or increasing their spend in traditional TV in the coming year.
Households also spend nearly 6 hours per day watching traditional TV, with 90% of that going to live viewing.
Additionally, a “big screen” TV is still a preferred method of consumption for most viewers, accounting for 82% of streaming viewing while creating an environment where viewers pay more attention and take more action.
Markets are moving FAST
The Comcast report also has good news for FAST channels, which have been making a splash lately as consumers look for alternatives to subscription services that are increasingly hiking prices.
According to the report, viewers engage with the free linear alternative in the same way they do with AVOD and see the content as equally premium.
Programmatic advertising is on the rise, with a 12% year-over-year increase in programmatic ad views. And the share of live sports impressions transacted programmatically has increased 38% in 2023 when compared to 2022, as sports programming moves to streaming and publishers turn to dynamic ad insertion and private marketplaces to capture increased revenue.
Like its recommendation last year, Comcast suggests TV advertisers should allocate 20-30% of their premium video budgets towards streaming and the rest to traditional TV to get maximum exposure.
“In the face of unprecedented change in the way consumers are viewing premium video content, buyers and sellers alike are looking for tangible metrics on what works best within this new TV environment,” Travis Flood, executive director of insights at Comcast Advertising, said in a statement. “The goal of this report is to provide actionable advice on using all the tools and channels now available for advertisers to maximize audience reach and drive strong viewer connections.”
Where things go from here
The report concludes with several industry predictions for the year to come.
Among the predictions, the report claims linear will increasingly behave more like digital and streamers will offer more bundled subscription plans.
Also, collaboration between companies will further drive innovation, contextual targeting will become more sophisticated and sustainability will be an important focus for U.S. advertisers moving forward.
