LG Ad Solutions, a specialist in connected TV and cross-screen advertising, has announced findings from a study titled The Efficiency Curve. Conducted in partnership with iSpot, a cross-platform TV measurement company, the study demonstrates how optimising media investments across linear TV and Connected TV (CTV) can minimise 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 per cent 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 per cent of their TV impressions to CTV compared to 17.4 per cent for other brands. This demonstrates how a more substantial investment in CTV can further amplify campaign outcomes by optimising key performance metrics.
The findings come amid broader trends in the TV landscape, where linear TV continues to dominate ad spending at 67.5 per cent of total TV ad budgets, despite viewers spending only 54.2 per cent of their total TV time on the platform (according to eMarketer). Meanwhile, CTV accounts for 32.5 per cent of ad spending but captures 45.8 per cent 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,” commented 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.
“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.”