Advanced Television

Study: D2C CTV/OTT marketing ad spend to increase

April 13, 2023

Findings from brands and agencies performance media partner Digital Remedy’s report, CTV/OTT: The Next Frontier of DTC Marketing, which surveyed US-based direct-to-consumer (DTC) marketers to understand the growing influence of CTV/OTT in their marketing budgets and media strategies in 2023, indicate that over two-thirds (67 per cent) of DTC marketers leverage CTV/OTT insights to influence their linear strategies. In leveraging a convergent strategy that pairs linear and CTV/OTT, these marketers have an opportunity to target key metrics at the household level while avoiding oversaturation.

Additional key findings include:

  • Investment in CTV/OTT rises year-over-year

Of DTC marketers planning to spend on CTV/OTT in H1 2023, 57 per cent plan to spend more this year, versus 43 per cent in H1 2022. Access to higher quality OTT inventory (40 per cent) and brand lift measurement capabilities (38 per cent) would have the most impact on convincing DTC marketers to increase their CTV/OTT budget.

  • CTV/OTT generates a new wave of budget allocation and ad spend

65 per cent of DTC marketers who plan to spend more on CTV/OTT in H1 2023 say it will be their first time investing in this media channel altogether. Among those who plan to spend more in CTV/OTT, 61 per cent say the budget will be reallocated from another media channel (i.e., search and social, mobile apps, and digital display), while 39 per cent say they will increase their total media budget to allow for increased investment on CTV/OTT.

  • CTV provides a leg up in a cookieless world

Nearly a quarter of DTC marketers say that their advertising campaigns (targeting or measurement abilities) have been affected by recent data privacy regulations. CTV offers the ability to measure online and offline conversions to understand the true impact of campaigns, taking the guesswork out of attributing ROI. For DTC marketers, high brand awareness, product visibility, and larger reach are considered top benefits of CTV/OTT as a direct-to-consumer marketing channel.

  • DTC marketers are looking for stronger campaign performance insights (including more granular measurement and reporting) from their media partners

Marketers are looking for partners that can deliver on specific capabilities that their current media partners are lacking, such as real-time, automated campaign reporting and optimisation. When asked about their satisfaction level, less than half say they’re satisfied with their current media partner’s incremental measurement (48 per cent), survey-based brand lift measurement (47 per cent), and low-funnel attribution (44 per cent).

“CTV/OTT provides an all-encompassing performance channel that presents a wide reach, accountability and precise targeting through data analysis,” advises Matt Sotebeer, Chief Strategy Officer at Digital Remedy. “Additionally, it offers a secure and captivating advertisement environment for brands. DTC marketers who aren’t investing and leveraging in CTV/OTT are missing a prime opportunity to engage with customers who are predominantly consuming media through these channels.”

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