European Video Distributors Making Big Bets on Total TV

Two-thirds of European video distributors expect to generate a key part of their Total TV (linear and digital) ad revenue from linear investments, according to a new study from Telecommunications, Media, and Technology strategy firm Altman Solon.

Altman Solon analyzed the Total TV advertising ecosystem in several of Europe’s largest markets, including the United Kingdom, Germany, and France. Through surveys and interviews with senior leadership at more than 60 traditional broadcasters, Pay TV, streaming platforms, ad agencies, and marketers, the report reveals investment trends and emerging revenue-generating opportunities for ad products, ad tech, and new inventory sources.

“New ad products across Total TV – specifically around attribution, shoppable TV, and dynamic creative – are empowering European video distributors to deliver more integrated and data-driven ad buyer offerings,” said Altman Solon Director Daniel Weinbaum. “However, the study also shows how more education and consensus with brands are needed to boost adoption of these products, particularly for linear addressable and digital, which are key growth areas for video ad spend.”

Other key findings of the study include:

• FAST track to offset audience migration – 80% of European distributors plan to invest in free ad-supported streaming, accelerating a trend to capture audiences shifting to digital.
• Cross-platform a good fit – 69% of European distributors consider cross-platform measurement tools to be a high-priority, planned product investment to enhance the capture and use of impressions-based data shared across multiple platforms.
• Keep it in-house – 57% of enterprise marketers invest in tools to fully own creative asset development, with 47% of mid-market marketers and 45% of SMB marketers following suit.
• Data is elusive – 49% of respondents strive to get data that accurately combines ratings and ad impressions.

The study is the first to explore cross-analysis of how both video distributors and ad buyers are investing in ad products and inventory sources and enhancing their own ad tech capabilities. There is also a focus on the expected actions that will drive increased ad investment across the Total TV ecosystem.

Visit Altman Solon’s Total TV Study page for more data on European video distributors' perspectives.