Advertisers Favor Premium Video Amid Economic Uncertainty
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.
