Connected TV (CTV) is no longer the future—it’s here.
With nearly half of all TV viewing now occurring on CTVs, CTV ad spend is expected to grow 10% annually through 2027, outpacing Linear TV. Yet despite this shift, a majority of TV ad impressions still go to Linear TV according to eMarketer.
iSpot and LG Ad Solutions collaborated together on a groundbreaking study, “The Efficiency Curve,” aiming to help the broader media marketplace understand the optimal balance between CTV and Linear TV investments. The findings indicate many brands may be over-invested in Linear TV, leaving the opportunity for CTV to drive stronger outcomes for advertisers focused on results.
This study highlights the need for precision in media planning — finding the maximum efficiency point where CTV and Linear TV work together to deliver optimal performance while minimizing ad exposure wastage. It showcases how reallocating just 6-7% of impressions from Linear TV to CTV can achieve notably stronger performance across KPIs for advertisers, resulting in more balanced frequency, broader reach, and significantly higher conversion rates.
Additional key findings:
- The need for precision in media planning. Brands need to find the optimal efficiency point where CTV and Linear TV work together to deliver optimal performance while minimizing ad exposure wastage.
- Brands that allocate an optimal share of CTV impressions see their reach and frequency build consistently and proportionally. This dynamic differs from Linear TV, where an excessive amount of linear frequency builds as Linear TV reach grows.
- Top performers across product categories see varying results across CTV KPIs and must be mindful of those nuances when allocating impressions.
To help marketers act on these insights, LG Ad Solutions and iSpot have expanded their partnership to deliver enhanced measurement and reporting capabilities.
These include:
- Third-party validation of reach and frequency.
- Mid-flight performance insights to optimize campaigns in real time.
- Detailed sub-category analysis for granular strategy adjustments.
- Localized measurement solutions for precision at every campaign level.
Read more about how optimizing media investments across Linear TV and CTV can minimize waste and drive superior campaign outcomes in “The Efficiency Curve” study from iSpot and LG Ads Solutions below.
‘The Efficiency Curve’: Finding the Optimal Balance Between CTV and Linear TV Investments
New data identifies the tipping point for optimizing television impressions across linear and CTV to achieve balanced frequency and drive higher ROI.
Mountain View, Calif, January 14, 2024 – LG Ad Solutions, a global leader in connected TV and cross-screen advertising, today announced findings from a pivotal study titled ‘The Efficiency Curve.’ Conducted in partnership with iSpot, a cross-platform TV measurement company, the study demonstrates how optimizing media investments across Linear TV and Connected TV (CTV) can minimize waste and drive superior campaign outcomes, including improved reach and frequency.
The study reveals that most brands can achieve significant efficiencies by reallocating just 6.3% of their total TV impressions from linear to CTV, resulting in more balanced frequency, broader reach, and significantly higher conversion rates. Top-performing brands, however, have already embraced this shift, allocating an average of 23.7% of their TV impressions to CTV compared to 17.4% for other brands. This demonstrates how a more substantial investment in CTV can further amplify campaign outcomes by optimizing key performance metrics.
The findings come amid broader trends in the TV landscape, where Linear TV continues to dominate ad spending at 67.5% of total TV ad budgets, despite viewers spending only 54.2% of their total TV time on the platform (eMarketer). Meanwhile, CTV accounts for 32.5% of ad spending but captures 45.8% of total TV viewing time, underscoring its growing importance and untapped potential in reaching audiences more efficiently.
“Modern marketers and media planners need to make every invested dollar work harder, now more than ever before,” said Tony Marlow, CMO at LG Ad Solutions. “This study underscores the need for precision in media planning—finding the optimal efficiency point where CTV and linear TV work in harmony to deliver maximum performance while minimizing ad exposure wastage. The findings suggest that many brands may be over-invested in cable and broadcast, leaving room for CTV to drive incremental reach, deeper engagement and stronger outcomes for advertisers focused on results.”
To help marketers act on these insights, LG Ad Solutions and iSpot have expanded their partnership to deliver enhanced measurement and reporting capabilities. These include:
- Third-party validation of reach and frequency.
- Mid-flight performance insights to optimize campaigns in real-time.
- Detailed sub-category analysis for granular strategy adjustments.
- Localized measurement solutions for precision at every campaign level.
“As the TV landscape evolves toward streaming, this study demonstrates the significant impact of reallocating impressions strategically,” said David Coletti, SVP of Research and Insights at iSpot. “This research underscores how our partnership with LG Ad Solutions equips advertisers with actionable insights and advanced tools to drive performance in this transformative era of television.”
For more information on LG Ad Solutions and to download the full report, visit here.