Three Out of Five CTV/OTT Advertisers Will Increase Spending by 21% on Average, Finds Advertiser Perceptions and Premion Survey

A Shift Towards a Complete TV Model Prioritizing CTV for Driving Full-Funnel Goals

July 25, 2024 – NEW YORK – Three out of five advertisers (61%) using CTV/OTT will increase spending, with an average increase of 21%, according to a new 2024 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 increasing investment and optimism in CTV/OTT advertising — with spending increases driven by the ability to achieve full-funnel objectives (41%), reach a highly-engaged opt-in audience (40%), and precision audience targeting (38%). Among those increasing their CTV/OTT ad spend in 2024, a notable 74% are reallocating budgets from digital, social media, or linear TV, while one in four (26%) are tapping into new ad budgets to fuel this growth.

Evolving Towards a Complete TV Buying Model

In terms of budget control, the study finds that more than half (56%) of CTV/OTT budgets are now primarily controlled by integrated/hybrid buying teams, indicating a growing shift towards a unified TV buying approach across linear TV and digital advertising teams.

Furthermore, four in five (80%) CTV/OTT advertisers view CTV/OTT advertising as an extension of their linear TV strategy, while seven in 10 advertisers agree that integrating linear TV with CTV/OTT advertising improves full-funnel ROI performance (74%), boosts ad recall (74%), and enhances brand awareness (71%).

“Advertisers are increasingly shifting dollars from other channels to boost their CTV ad budgets,” said Daniel Spinosa, President of Premion. “Our study validates that CTV is a valuable channel for achieving KPIs, and advertisers are increasingly prioritizing it as part of a complete TV strategy to drive full-funnel brand goals. They are harnessing sophisticated targeting and measurement capabilities to effectively measure its impact and drive significant business outcomes.”

Maximizing Impact Through Precision Targeting and Measurement

Advertisers are embracing the value of CTV advertising for its advanced targeting and measurement capabilities. Precision audience targeting (39%) tops the list of CTV/OTT advertising benefits, closely followed by capturing declining TV audiences (38%) and achieving full-funnel objectives (37%). One in three CTV/OTT advertisers emphasize the importance of building custom audiences (34%), with contextual and interest/behavior-based targeting cited as important most often.

Key reporting metrics for CTV/OTT ad campaigns include brand lift (45%), reach & frequency (37%), and sales lift (32%). Additionally, more than half of CTV/OTT advertisers (57%) agree that co-viewing is a valuable benefit, as it aligns CTV/OTT with linear TV practices, simplifying evaluation, planning, and measurement across both platforms.

Multifaceted Buying Approach and Emphasis on Premium Content and Ad Fraud/Brand Safety

A vast 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. Moreover, 50% of all CTV/OTT advertising is expected to be purchased programmatically in 2024, underscoring that advertisers are increasingly adopting a multifaceted approach to activating CTV campaigns, with 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. Moreover, 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.

Additionally, 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.

When it comes to challenges of CTV/OTT advertising, transparency on where ads are running (39%), fragmentation (39%), and ad frequency management (37%) rank as the top three concerns. “Transparency should be a given. Advertisers need clarity on what they are buying and where their ads are running. They should partner with trusted providers that offer accurate data targeting and verification against served impressions,” added Spinosa.

The complete “2024 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 150 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 2023 and 2024. Respondents were further qualified as US advertisers (national, regional, or local) spending a minimum of $250,000 annually on advertising. The study fielded in April 2024.

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. 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 15-time CTV industry award-winner, Premion was recognized in 2024 with the Digiday Media Award for Best Use of Audience Insights. In 2023, Premion was awarded the Advanced Advertising Innovation Award for Best Use of Data, the Cynopsis Measure Up Award for Outstanding Brand Safety Strategy, and the ITVT Award for Achievement in Advanced Advertising. 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.