NEW YORK—More than half of advertisers using connected TV/OTT say they will increase spending, with an average increase of 22%, according to a new 2022 CTV/OTT Advertiser Survey released by Advertiser Perceptions and Premion.
The survey reveals that the ability of CTV advertising to precision target and achieve full-funnel brand goals are fueling the CTV spending.
About two thirds of advertisers (66%) are shifting budgets from digital, social and linear TV to fund CTV/OTT spend increases, while 30% say that funding will come from an overall increase in ad budgets, the survey found.
Additionally, more than four in five advertisers believe that the value of connected TV/OTT is greater than, or equal to, that of primetime TV, with two in five saying the channel is more valuable.
“Advertisers have embraced CTV and they’re shifting bigger budgets to the medium as an essential buy for driving brand awareness and performance marketing,” said Tom Cox, president of Premion. “Our study validates that CTV has become an invaluable channel for brand marketers and agencies to follow their audiences, plan with data-driven targeting, and measure with outcomes-based performance. New data capabilities make CTV even more compelling for advertisers to gain a complete understanding of audience behaviors and to connect viewership to direct business results.”
In terms of performance, 43% of marketers surveyed said that CTV/OTT spend increases are driven by the ability to achieve brand awareness and performance marketing goals. Precision audience targeting and extended reach for linear TV campaigns top the list of CTV advertising audience benefits. While reach and frequency, as well as driving brand lift and sales lift, are the top ad campaign metrics, many advertisers are still measuring CTV via website visits and impressions by network.
Other key findings in the survey include:
- 56% of advertisers say the ability to precision target audiences is the top reason for increasing CTV/OTT spending in 2022.
- Nearly 70% of advertisers agree that CTV/OTT allows them to target audiences locally in ways that are not possible with traditional TV.
- Four in five advertisers consider the availability of custom audience segments very or somewhat important.
- One in two advertisers use impressions and increase in brand awareness to evaluate campaign ROAS (return on ad spend).
- Nine in 10 advertisers consider brand safety a priority in their CTV/OTT advertising planning and strategy.
- Four in five advertisers consider ad fraud prevention a priority in their CTV/OTT advertising planning and strategy.
- Nine in 10 advertisers consider it a priority to include premium video content in their CTV/OTT advertising.
- 97% of CTV/OTT advertisers agree that advertising on premium video content can improve ROI performance goals.
The complete “2022 CTV/OTT Advertiser Study” can be downloaded here.
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George Winslow is the senior content producer for TV Tech. He has written about the television, media and technology industries for nearly 30 years for such publications as Broadcasting & Cable, Multichannel News and TV Tech. Over the years, he has edited a number of magazines, including Multichannel News International and World Screen, and moderated panels at such major industry events as NAB and MIP TV. He has published two books and dozens of encyclopedia articles on such subjects as the media, New York City history and economics.