Brands are set to ramp up their spend on identity solutions to fuel data-driven TV advertising, more than doubling their budgets from $2.25bn (£1.86bn) in 2021 to $5.5bn (£4.5bn) by 2026, with the so-called “advanced TV” market rocketing from $17.29bn (£14.3bn) in 2021 to $47.8bn (£39.4bn) in 2026.
That is the key finding from a new Winterberry Group study, “The Outlook for Identity in Advanced Television: Challenges and Opportunities”, based on the US and UK market, along with interviews conducted with industry experts.
ID resolution, second-party data collaboration platforms, including the variety of clean rooms, third-party identity graph licensing, and first-party data management are all set to benefit.
Winterberry Group managing director for EMEA Charles Ping said: “The ATV market continues to evolve with the evolution of platforms and the use of first-party data. However, on a global basis interoperability is key to development, whether that is via clean rooms or other identity solutions.
“The challenges around planning, activation, optimisation, and evaluation are evolving with publishers, technology owners, and delivery partners all working towards a set of solutions that meet the needs of the high-value ATV market against a changing privacy backdrop and in many situations, a shared viewing experience.”
However, although the ATV market is entering a period of intense growth, it is not without multiple challenges, Winterberry Group maintains, and it has identified a number of primary issues that need to be tackled around accurate, audience-based activation and measurement.
These include a disconnect between linear TV media planners and digital buyers within the same brands and their agencies; the five paths to buy media on the TV sets within consumer households; the absence of a unified or interoperable identity solution; and the lack of unified measurement across channels.
Innovid CTO and co-founder Tal Chalozin commented: “The market is extremely fragmented across walled gardens with different identity solutions. Marketers need a cross-walk solution to link disparate identifiers and unlock the richest data.
“We understand the growing need for a forward-thinking identity resolution approach that puts transparency and privacy first. These findings reaffirm that an interoperable infrastructure is the smartest path forward for the industry.”
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