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Programmatic TV spend to surge in 2021 as viewers eschew traditional linear TV and go digital

Global TV advertising budgets are shifting from linear to digital and will kick into high gear next year, driven by consumers who are turning to OTT, a 2021 Global Video Advertising Trends report from SpotX predicted.

“We’re in the midst of the ‘connected decade’, especially as viewership and adoption of connected TV (CTV) and OTT continue to skyrocket,” said Mike Shehan, Co-founder and CEO of SpotX. “Record numbers are tuning in, and at this rate, cord-cutting households are on track to eclipse traditional pay TV by 2024.”

SpotX believes advertisers are beginning to understand how to activate data for efficient audience targeting while still achieving scale in OTT. It also sees more advertisers recalibrating their media plans towards digital, while mobile adoption in Asia is encouraging increased OTT spend.

The accelerated shift in consumer viewing habits will expedite the development of a post-cable ecosystem as new subscription offerings from legacy giants pull more traditional TV households into the digital future, predicted SpotX.

It added that along with changing viewing habits, programmatic budgets will surge with the rise in CTV streaming, as well as advancements in addressable technology that are bringing linear inventory into digital buying workflows.

“There is a massive opportunity to apply digital technologies and audience data to make broadcast ads targetable and more relevant. The category is finally taking off, with more inventory available and the programmatic pipes built out, and you can expect to see more linear TV budgets transacted digitally,” the report said.

In 2021, SpotX said media owners, advertisers and smart TV manufacturers will focus on the potential for audience data to improve inventory values, enhance campaign performance, and deliver more relevant consumer experiences.

While compiling the report, SpotX gathered insights from industry leaders that include Acxiom, AMC Networks, CCI, Discovery, DISH Media, GroupM, Samsung Ads, The Trade Desk, and TransUnion, to share their predictions about what’s next for TV and video in the upcoming year.

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