Study: DTC brands increase CTV spend in 2022
June 17, 2022
Findings from a study by CTV advertising and marketing technology platform Digital Remedy suggest that marketers are increasingly turning to CTV/OTT to reach audiences.
“The growth we are seeing in the DTC space is remarkable – and while DTC marketers recognise the potential of CTV/OTT, many of them are just beginning to allocate spend there,” said TJ Sullivan, SVP of Sales at Digital Remedy. “Industry research shows that roughly 70 per cent of DTC consumers say they spend more time watching streaming TV each week than they spend on social media, meaning brands can feel confident their new investments in the channel are well-spent.”
DTC marketers are prioritising performance and ROI in their ad spending, geared towards customer acquisition with many turning to CTV/OTT. By incorporating CTV/OTT into the media mix, brands are able to broaden digital strategies beyond social and digital, expanding reach and engagement.
The study, conducted in partnership with Dynata, found that nearly 50 per cent of DTC marketers who plan to spend more on CTV/OTT in 2022 say it will be the brand’s first time investing in the space. It also revealed that nearly two-thirds of DTC marketer respondents leverage CTV/OTT insights to influence their linear strategies and that increasing brand awareness (31 per cent rank this #1) and sales growth (another 31 per cent rank this #1) were key concerns.
Other key highlights include:
- On average, DTC marketers will spend $87.8K on media in 1H 2022, with many spending over $100K.
- 43 per cent of those who allocated budget to CTV/OTT in 1H 2021 will spend more in 1H 2022.
- 47 per cent said offering brand lift measurement—how your ad impacts people’s perception of your brand—would have the most impact on convincing them to increase their CTV/ OTT budget.
“DTC brands have an unprecedented opportunity to target new audiences in new ways,” continued Sullivan. “CTV’s ability to measure online and offline conversions provides marketers a true understanding of the impact of their investments, taking the guesswork out of attributing ROI.”