New Study: CTV Paving the Way in Ad Spending Growth

Author: Annmarie Gatti, Head of Marketing, Premion.

2024 is a banner year for advertising, with Connected TV (CTV) leading the charge, attracting more ad dollars than ever. We’ve just unveiled our 2024 CTV/OTT Advertiser Study, our third annual “voice of the customer.” survey in collaboration with Advertiser Perceptions. Together, we’ve captured the pulse of marketers and agencies, revealing their top concerns and priorities around CTV sentiment, spending, and strategy.

The key takeaway? Investment and optimism in CTV are on the rise. An impressive 61% of advertisers using CTV/OTT plan to increase their spend, with an average increase of 21%. This shift signals growing confidence in CTV’s value and effectiveness, driven by key advantages like achieving full-funnel objectives (41%), reaching a highly engaged opt-in audience (40%), and precision audience targeting (38%). Among those increasing CTV/OTT ad spend in 2024, a whopping 74% are reallocating budgets from digital, social media, or linear TV, while 26% are tapping into new ad budgets to fuel this growth.

Advertisers are increasingly prioritizing CTV as a core part of a complete TV strategy, with a growing trend towards an integrated buying approach across linear TV and digital teams. Our study reveals that over half (56%) of CTV/OTT budgets are now managed by integrated or hybrid buying teams. Additionally, a striking 80% of CTV/OTT advertisers view streaming as a natural extension of their linear TV strategy. The benefits are clear: seven in ten advertisers agree that combining linear TV with CTV advertising enhances full-funnel ROI (74%), improves ad recall (74%), and boosts brand awareness (71%).

Among other notable findings:

• Majority of advertisers (97%) work with more than one CTV/OTT provider, with 40% using an average of more than five providers on a typical campaign — reflecting the diversity and reach sought by CTV advertisers.
• 50% of all CTV/OTT advertising is expected to be purchased programmatically in 2024, underscoring advertisers’ growing adoption of a multifaceted approach to CTV campaigns — in using both programmatic and managed services.
• Advertisers prioritize premium video content (89%), ad fraud prevention (84%), and brand safety (83%) in their strategic planning, emphasizing the importance of premium quality in CTV campaigns.
• 83% of CTV/OTT advertisers believe that CTV/OTT’s value is greater than, or equal to, that of primetime TV, with 36% saying that CTV/OTT is more valuable.

• 53% of CTV/OTT advertisers say CTV/OTT is more effective than social media in ensuring a brand-safe environment, while 42% say it is more effective in measuring campaign effectiveness and aligning with quality content.

To dig deeper, we invite you to download the complete “2024 CTV/OTT Advertiser Study” here.

Read more on MediaPost here.