2 in 3 Advertisers Using CTV/OTT Will Increase Spending, Finds New Advertiser Perceptions and Premion Survey

Premium Video Content, Brand Safety, and Ad Fraud Prevention Remain Top Priorities

June 28, 2023 – NEW YORK – Two in three advertisers using CTV/OTT will increase spending, with an average increase of 23%, according to a new 2023 CTV/OTT Advertiser Survey released by Advertiser Perceptions and Premion, the leading premium CTV/OTT advertising solution for regional and local advertisers.

The survey reveals that investment and optimism for CTV/OTT advertising remain high — and increasing expenditure is being driven by the ability to capture declining TV audiences (46%), provide the benefits of TV with digital capabilities (44%), and the ability to achieve full-funnel objectives (39%). Additionally, among advertisers who are increasing their CTV/OTT ad spending in 2023, a majority (62%) are reallocating their budgets from digital, social media, or linear TV to fund their increased spend on CTV/OTT advertising, while one in three advertisers are utilizing new ad budgets for this purpose.

In terms of budget control, the survey findings indicate that 52% of CTV/OTT budgets are now primarily controlled by integrated/hybrid buying teams — signaling the growing trend towards a more converged and unified approach within linear TV and digital advertising teams.

“Advertisers have not only embraced CTV advertising but are shifting even more dollars away from other channels to bolster their CTV ad budgets,” said Tom Cox, President of Premion. “Our study unequivocally affirms that CTV has evolved into an essential channel for marketers to achieve their full-funnel brand goals. The proven effectiveness of CTV in precisely reaching target audiences, delivering personalized ads in engaging content through premium inventory, and driving business outcomes has cemented streaming TV as a winning strategy for advertisers.”

Convergent Linear + CTV Strategy Increases Brand Awareness and Improves Overall ROI

The report finds that three out of four CTV/OTT advertisers view CTV/OTT advertising as an extension of their linear TV strategy — and two out of three advertisers agree that combining linear TV with CTV/OTT advertising increases brand awareness and improves overall ROI performance throughout the entire marketing funnel.

According to advertisers, the top-ranking benefits of CTV/OTT advertising are found to be achieving brand awareness and performance marketing goals (38%), leveraging the advantages of TV with digital capabilities (38%), extending the reach of linear TV campaigns (37%), and capturing declining TV audiences (37%). Additionally, 86% of CTV/OTT advertisers believe that CTV/OTT’s value is greater than, or equal to, that of primetime TV, with 44% saying that CTV/OTT is more valuable. 

Among the key audience and measurement findings:

• Seven in 10 CTV/OTT advertisers agree that CTV/OTT allows them to target audiences locally in ways that are not possible with linear TV.
• Advertisers say brand lift (42%), reach and frequency (41%), sales lift (37%) and linear reach extension measurement (35%) are the top KPIs for CTV/OTT advertising. 
• More than half of CTV/OTT advertisers agree that co-viewing is a value-add benefit of CTV/OTT advertising and/or provides a like-for-like comparison to linear TV.

Premium Video Content, Brand Safety, and Ad Fraud Prevention Remain Top Priorities

More than 40% of CTV/OTT advertisers say that CTV/OTT is more effective than digital video or social media in aligning with quality content and/or ensuring a brand-safe environment. In their CTV/OTT advertising planning and strategy, advertisers prioritize premium video content, brand safety, and ad fraud prevention as key considerations, including:

• 97% of CTV/OTT advertisers agree that advertising on premium video content can improve ROI performance goals.
• 87% of advertisers consider brand safety a priority in their CTV/OTT advertising planning and strategy, with nearly 40% considering it a top priority.
• 84% of advertisers are concerned with ad fraud in their CTV/OTT advertising, with over 30% being very concerned.

The complete “2023 CTV/OTT Advertiser Study” can be downloaded here.

Methodology:

Premion commissioned Advertiser Perceptions to conduct an advertiser study on media spending and priorities in the planning, buying, and measurement of CTV/OTT advertising. Advertiser Perceptions executed an anonymous online survey among 151 ad agency or brand-side marketers involved in the decision-making for CTV/OTT advertising. The decision-makers were qualified as being involved in advertising strategy or budgeting decisions, media planning or buying, or vendor selection. Connected TV/OTT advertising use was required for both 2022 and 2023. Respondents were further qualified as US advertisers (national, regional, or local) spending a minimum of $250,000 annually on advertising. The study fielded in March 2023.

About Premion

Launched in 2016 by TEGNA Inc. (NYSE: TGNA), Premion is an industry-leading premium CTV/OTT advertising platform for regional and local advertisers. Gray Television, Inc. (NYSE: GTN) acquired a minority stake in Premion in 2020. With directly sourced inventory from 125+ premium publishers, Premion delivers transparency and brand safety, making it easy for advertisers to target and reach engaged audiences at scale. A 13-time CTV industry award-winner, Premion was recognized in 2023 with the ITVT Award for Achievement in Advanced Advertising and the Cynopsis Measure Up Award for Outstanding Brand Safety Strategy. In 2022, Premion won the Cynopsis Model D Awards for Outstanding Local Advertising Solution and the Best of the Best Award for Best Ad Tech Solution. The Company has earned the TAG Certified Against Fraud Seal and the TAG Brand Safety Certified Seal from the Trustworthy Accountability Group (TAG). For more information, visit www.premion.com.

About Advertiser Perceptions

Advertiser Perceptions is the global leader in research-based business intelligence for the advertising, marketing, and ad technology industries. Our expert staff delivers an unbiased, research-based view of the advertising market with analysis and solutions tailored to our client’s specific KPIs and business objectives.  These insights provide our clients with the confidence to make the very best organizational, sales and/or marketing decisions, driving greater revenue and increased client satisfaction. For more information, visit www.advertiserperceptions.com.