Comcast Finds Ideal Linear and Streaming Ad Spend Balance

Comcast Advertising has an answer to the question buyers have been grappling with since the advent of ad-supported streaming: how much money should be spent on streaming? In a newly released report based on proprietary data—the first edition of its inaugural Comcast Advertising Report, called Actionable Insights for the Modern TV Advertiser—Comcast looked at the implications of the landscape for viewers, buyers and sellers. The company recommends that advertisers allocate 20-30% of their premium video budgets for streaming, with the rest going to traditional TV. "For years, advertisers have been asking us how to best balance investments across traditional TV and streaming platforms in order to enhance campaign performance,” said James Rook, general manager of Effectv, Comcast Advertising’s ad sales division, in a statement. “Advertisers shouldn’t be making a guess or ‘going with their gut’ on this; rather, they should focus on the data. By looking at thousands of campaigns across verticals and across budget amounts, the data is quite clear: TV should still act as the foundation for most advertisers, but reach is highest when 20-30% of the budget is allocated to streaming.” The Comcast Advertising Report found that viewers prefer live content on both TV and streaming, with 89% of traditional TV viewing spent watching live TV, and 54% of digital TV viewing live. Viewers are also seeing more digital ads than ever before, with views on digital services jumping 45% from the second half of 2020 to 2H21. This Year’s Upfront Might Feel Like Business as Usual, but a Metrics Revolution Is Underway Programmatic ad views are also growing, jumping 80% year-over-year, and audience targeted campaigns have grown 50% year-over-year. FAST (free ad-supported streaming television) is a rapidly growing opportunity for advertisers. Viewership grew 25% year-over-year in 2021, faster than connected TV is growing as a whole. “This has been an incredible year for TV advertising’s progress and innovation, and this is clearly evident in the discussions we’re having every day,” said Mark McKee, general manager of FreeWheel, Comcast’s media and ad-tech platform, in a statement. “From addressable to programmatic, to first-party data—the opportunities are there for advertisers to do more with their budgets and connect better with sellers.” The report also looks ahead for the industry, in addition to recommending the optimal budget allocation. New streaming options will continue to proliferate (just look at upcoming ad-supported offerings from Disney+ and Netflix), and the shift to audience-based buying will give way to new currencies. Several organizations, including NBCUniversal and Paramount, have been busy creating their own measurement alternatives. Comcast Advertising also predicts that programmatic advertising could compromise half of premium video selling by 2026, especially as data-driven targeting and multiscreen audience-based buying becomes the norm.

Streaming & OTT

Comcast Says It's Found the Ideal Ad Spend Balance Between Linear and Streaming

The company’s inaugural Comcast Advertising Report recommends how buyers should allocate budgets

Mollie Cahillane

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Mollie Cahillane