Survey: Brands to increase CTV ad budget by 44% in 2023
October 27, 2022
AppsFlyer has released a survey report, Connected TV Trends, 2022-23, Advertiser and Viewer Perceptions, that combines viewer and brand insights on the rapidly evolving Connected TV (CTV) space. The growth of CTV devices and platforms has spurred interest and popularity for advertising, and the survey found that currently, 64 per cent of businesses are running direct response campaigns on CTV.
Advertising on CTV also allows brands to expand reach, measure cross-platform, cross-device campaigns and better target consumers with relevant, contextual ads. With that in mind, for advertisers, understanding consumer preferences and habits regarding CTV, including how they feel about commercials, the dollar value they place on ad-free content, and how likely they are to download apps resulting from CTV ads, is extremely beneficial.
- 98 per cent of businesses believe that CTV advertising will be bigger than mobile advertising. The vast majority of brands think that CTV advertising will overtake mobile advertising, and a quarter of respondents say that this will happen in the next two to three years. According to brands, the reasons to advertise on CTV include engaging with new audiences (73 per cent), increasing engagement levels (73 per cent) and driving higher lifetime value (50 per cent).
- Half of viewers in North America downloaded mobile apps after watching a CTV ad. Globally, 40 per cent of consumers have downloaded mobile apps following seeing advertisements for an app. Additionally, 53 per cent of consumers say they are likely, or very likely, to do this using QR codes.
- 86 per cent of consumers are willing to see ads on CTV, especially if they are relevant to them. There’s a widespread misconception that mid-stream ads could drive viewers away, but in reality, consumers may not mind ads as much as brands think. Only 40 per cent of viewers say that they will stop watching CTV if there are too many ads. On average consumers are happy to watch 1.7 ads within 30 minutes of content, but this number takes a 220 per cent leap to 5.8 ads if they are relevant to the viewer.
- Brands rank smart TVs as top priority, but are disregarding platforms that many viewers use to watch CTV platforms, gaming consoles. Additionally, when given the option to target consumers by the content they are watching, the top content categories brands are targeting are not necessarily aligned with the content that consumers are actually watching. For example, 64 per cent are targeting sports and fitness, while only 42 per cent of consumers are watching this content. In the other direction, 62 per cent of consumers are watching documentary content, but only 26 per cent of businesses are targeting that content.
“CTV is a huge opportunity, allowing marketers to engage with a whole new segment of potential users,” said Gil Meroz, VP of Innovation and General Manager, AppsFlyer. “For brands, now is the perfect time to start advertising on CTV before it becomes a heavily crowded and saturated space. The earlier you get into a new channel, the more you get out of it.”