Advanced Television

Survey: 2 in 3 advertisers using CTV/OTT will increase spending

June 29, 2023

Two in three advertisers using CTV/OTT will increase spending, with an average increase of 23 per cent, according to the 2023 CTV/OTT Advertiser Survey from market intelligence specialist Advertiser Perceptions and CTV/OTT advertising solution Premion.

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 per cent), provide the benefits of TV with digital capabilities (44 per cent), and the ability to achieve full-funnel objectives (39 per cent). Additionally, among advertisers who are increasing their CTV/OTT ad spending in 2023, a majority (62 per cent) 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 utilising new ad budgets for this purpose.

In terms of budget control, the survey findings indicate that 52 per cent of CTV/OTT budgets are now primarily controlled by integrated/hybrid buying teams — signalling 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,” notes 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 personalised 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 per cent), leveraging the advantages of TV with digital capabilities (38 per cent), extending the reach of linear TV campaigns (37 per cent), and capturing declining TV audiences (37 per cent).  Additionally, 86 per cent of CTV/OTT advertisers believe that CTV/OTT’s value is greater than, or equal to, that of primetime TV, with 44 per cent 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 per cent), reach and frequency (41 per cent), sales lift (37 per cent) and linear reach extension measurement (35 per cent) 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 per cent 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 prioritise premium video content, brand safety, and ad fraud prevention as key considerations, including:

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

Categories: Advertising, Articles, Broadcast, Connected TV, Markets, OTT, OTT, Premium, Research, Targetted, VOD

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