State of Performance TV 2024
tvScientific’s annual report on how marketing teams are leveraging performance TV advertising to effectively target their buyers and improve business outcomes.
What is the impact of performance TV on a company’s revenue? How does the advertising channel compare to other marketing channels?
tvScientific surveyed more than 600 marketing professionals on how their teams use performance TV in their marketing mix and its impact on business outcomes.
You may see the terms over-the-top (OTT) or connected TV (CTV) used synonymously with performance TV. For the sake of this report, when we refer to performance TV, we are referring to a broad term that includes OTT (the content) streamed on CTV (the type of device it's delivered on).
Top Takeaways
54% of marketers rely on performance TV to generate pipeline. Marketers’ dependence on the media channel will increase because they plan to spend 23.6% more on CTV ads in 2024.
35% of marketers plan to increase overall ad spend in 2024 and most advertisers agreed that CTV was the most effective channel in their marketing mix.
65% of advertisers report an increase in sales when performance TV is added alongside other paid channels like search and social.
With a diverse marketing mix, 68% of respondents say their company’s brand awareness has increased since using performance TV.
Two myths about performance TV remain unnecessary obstacles for advertisers: it’s hard to target the right audience and measure the results. In reality, performance TV has a higher return on investment because of its targeting capabilities and outcome-based advertising model.
Marketing-generated pipeline at my company relies on CTV
My company’s sales have increased since using CTV alongside other paid channels like search and social
It’s becoming difficult to stand out on social media
“Advertising via Connected TV is a sleeping giant. With half of US TV watching now taking place over streaming services and providers such as Amazon, Netflix and Disney all introducing new membership tiers with variable rates of advertising, partners who can drive lower funnel activation, performance, measurement, and ROI are positioned for huge success.”
Sir Martin Sorrell
Co-Founder, S4S Ventures
Performance TV is a powerful channel marketers increasingly depend on to drive sales.
65% of marketing teams report a boost in sales when performance TV is used alongside other paid channels like search and social.
Marketers’ reliance on performance TV will increase in 2024 because 35% of marketers plan to increase ad spending on the channel. Continually, they plan to spend 23.6% more on streaming ads this year alone.
Moreover, performance TV is the fastest-growing marketing channel. Analysts predict CTV ad revenue will reach $6.1 billion in 2025, surpassing cable TV.
Along with its rapid growth, respondents ranked performance TV as the most effective marketing channel within their marketing mix.
Rank your marketing channels based on effectiveness, from most effective to least effective
Performance TV Emerges as a Brand Builder, Protector
According to our survey results, 68% of advertisers say their brand’s awareness has increased alongside other paid channels like search and social. As a company’s brand affinity increases, the risk to brand safety rises, too.
My company’s brand awareness has increased since using CTV alongside other channels
Based on a report by Mediaocean, 40% of advertisers have increased concerns about brand safety. While there are known risks associated with every advertising channel, connected TV decreases that risk by revolutionizing how advertising takes place.
"The market potential of Connected TV is very real. CTV is growing and it offers so much more than the simple extension of linear TV campaigns. Bringing outcome-focused advertising (Cost Per Action, Cost Per Install, ROAS, and beyond) to the most impactful creative unit, a 15 or 30 second TV commercial will provide tremendous value to publishers and most importantly, advertisers."
Chris Riedy
Chief Revenue Officer
What we find interesting, however, is that 62% of respondents also said it’s easy for them and their team to prove TV’s impact.
It’s easy for me/my team to prove TV’s impact on revenue
Even though marketers believe audience targeting will be their greatest challenge for CTV in 2024, the exact opposite is true. Advertisers can precisely target audiences with specific behavioral or demographic profiles and manage campaigns with greater agility, adjusting bidding as the campaign unfolds.
A clearer picture of a campaign’s ROAS is another advantage of performance TV.
For example, many advertisers only use last-touch attribution to prove CTV’s impact on revenue. An ad goes up, and sales go up. Using the outdated first- and last-touch attribution model leaves out critical data about the entire buyer’s journey.
Multi-touch gives critical insights into what drives conversions, allowing advertisers to optimize the bidding engine with the latest data.
Continually, multi-touch attribution lets marketers see a more accurate return on ad spend. In turn, advertisers can see actual costs and ROAS on a connected TV campaign.
“The tvScientific team was invaluable in helping us navigate a new media buying channel with CTV to reach our goal of finding high quality players, cost effectively.”
Fernanda Tolentino
User Acquisition
