Most advertisers buying connected TV and over-the-top inventory plan to increase their spending on streaming by an average of 22%, according to a new study from Advertiser Perceptions and Premion, Tegna’s local OTT/CTV ad unit.
Among those responding to the study, 25% called CTV/OTT the most important or valuable media type in 2021, topping linear TV, paid search and social.
“Advertisers have embraced CTV and they’re shifting bigger budgets to the medium as an essential buy for driving brand awareness and performance marketing,” Premion president Tom Cox said. “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 the study, 56% of advertisers said the ability to precisely target audiences was the top reason for increasing CTV/OTT spending in 2022. Other key benefits include extending the reach of linear TV ad campaigns, capturing declining TV audiences and reaching a highly engaged, opt-in audience.
Nearly 70% of advertisers agreed CTV/OTT allows them to target local audiences in ways that are not possible with traditional TV.
Advertisers said challenges using CTV and OTT included getting transparency in terms of where ads were running, managing ad frequency across publishers and platforms, cost, fragmentation and inconsistent measurement standards.
The money being spent on CTV and OTT is most often coming from linear TV budgets, the study found. In fact, 84% of respondents said CTV/OTT inventory is at least as valuable as primetime TV. Funds were also coming out of budgets for other types of digital video, digital display and social media.
In conducting the survey, Advertiser Perceptions was commissioned by Premion and surveyed 151 brand marketers and ad-agency decision makers. The study was fielded in March. ■
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.