Justin Evans of Samsung Ads concludes that a budget mainly with linear TV, would not reach the 81% of users who mostly stream
Samsung Ads: It is necessary to balance the linear TV budgets and allocate 40% of them to AVOD
Maribel Ramos-Weiner|18 de agosto de 2021
Based on the data of more than 50 million smarTVs, Justin Evans, Global Head of Analytics for Samsung Ads, advises on the need of balancing the linear TV advertising budgets and allocate 40% of that money to advertising-supported streaming services (AVOD). Evans' talk kicked off the first day of the virtual StreamTV Ad Summit, organized by Fierce Video, which was dedicated to addressable TV, its challenges, and opportunities.
During his presentation entitled “Rule of 40: The Rebalancing Act”, explained that his first-hand data is powered by Automatic Content Recognition (ACR) technology that identifies content audiences across linear and connected TV and game environments. Another source they used for the study was third-party data from Nielsen and MediaRadar.
According to Evans, there is an imbalance in the current mix between households that only have linear TV versus households with streaming. He indicated that in households with streaming there is a penetration of 93% among Adults 18-49-year-old who only watch 1.3 hours a day of linear TV, while households that only have linear TV have a penetration of 7% in A18-49 years and they watch three hours of linear TV a day.
Evans said, for example, that the automotive category that was investing 60% in linear and 40% in AVOD achieved a balance of 110 impressions in linear and 99 in homes with streaming.
He noted that the current mix is losing impact on most streamers. In households that mostly watch streaming, there is a 78% penetration of Samsung in the A18-44 demo in the US who only watch 0.3 hours a day of linear TV, while households that are mostly linear TV, Samsung has a 22% penetration of Adults 18-44 in the US and they watch 4.7 hours of linear TV per day.
Evans concluded that a budget mainly with linear TV, would not reach the 81% of users who mostly stream. As a second conclusion, he indicated that with the rule of allocating 40% of the budget to AVOD a parity is achieved in most categories of advertisers for the delivery of linear TV-only households and households with streaming capabilities.
A third conclusion points out that AVOD options associated with broadcast TV and cable are limited to 37% of the time that the audience spends in these environments. "Advertisers must branch out," he pointed out.