New Study: More than Half of Advertisers Using CTV/OTT Will Increase Spending
Author: John Vilade, Head of Sales, Premion.
While our macro-environment is in a state of constant change, we’ve uncovered the one constant — advertisers are continuing to increase spending on streaming TV advertising. In our new 2022 CTV/OTT survey conducted by Advertiser Perceptions, we took the pulse of advertisers to dig deeper into their spending and priorities. We examined the current state of ad-supported CTV and advertiser understanding and sentiment on topics such as targeting, measurement, brand safety, ad fraud and inventory.
What we found is that investment and optimism for CTV advertising are already high and continuing to rise, driven by its ability to precision target and achieve full-funnel brand goals. In fact, more than half of advertisers using CTV/OTT will increase spending, with an average increase of 22%.
Notably, 66% of advertisers are shifting budgets from digital, social and linear TV to fund CTV/OTT spend increases, while 30% say that funding will come from an overall increase in ad budgets. Additionally, more than four in five advertisers believe that the value of Connected TV/OTT is greater than, or equal to, that of primetime TV, with two in five saying the channel is more valuable.
Our study revealed that 43% of marketers say that CTV/OTT spend increases are driven by the ability to achieve brand awareness and performance marketing goals. Precision audience targeting and extended reach for linear TV campaigns top the list of CTV advertising audience benefits. While reach and frequency, as well as driving brand lift and sales lift, are the top ad campaign metrics, many advertisers are still measuring CTV via website visits and impressions by network.
Among the key findings:
- 56% of advertisers say the ability to precision target audiences is the top reason for increasing CTV/OTT spending in 2022.
- Nearly 70% of advertisers agree that CTV/OTT allows them to target audiences locally in ways that are not possible with traditional TV.
- 97% of CTV/OTT advertisers agree that advertising on premium video content can improve ROI performance goals.
- Nine in 10 advertisers consider brand safety a priority in their CTV/OTT advertising planning and strategy.
- Four in five advertisers consider ad fraud prevention a priority in their CTV/OTT advertising planning and strategy.
- Nine in 10 advertisers consider it a priority to include premium video content in their CTV/OTT advertising.
Read us on MediaPost here.