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Most Brands Plan To Spend More on CTV: Advertiser Perceptions

A family watching TV
(Image credit: Getty Images)

Connected TV is likely to stay hot according to a new survey that finds that 56% of advertisers plan to increase spending on CTV next year.

Advertiser Perceptions said that about 90% of video advertisers already run commercials in connected TV programming and that their average spending is about $33 million annually. 

“Advertisers are betting on CTV to solve fundamental marketplace challenges—from building reach in a fragmented market to offering addressability as other direct-to-consumer targeting options fade,” said Erin Firneno, VP of business intelligence at Advertiser Perceptions.

In most cases, marketers are funding their spending in CTV by shifting money from their current digital video budget, while 47% said the money was coming from the general advertising budget and 34% said it was coming from the linear TV budget.

Also: 55 Million Homes Only Watch Connected TV: Magnite

While 70% of advertisers said they most commonly buy CTV ads from device manufacturers, they expect to buy more from ad-supported video on demand (AVOD) platforms over the next year. Currently 64% said they buy from AVOD platforms and 63% said they buy from virtual multichannel video programming distributors (vMVPDs). 

Next year, 71% expect to buy from AVOD platforms, 70% see buying from device makers and 62% will buy from vMVPDs.

More than 90% of advertisers have bought CTV ads programmatically in the past year to get better pricing, ease of use and measurement.

Advertisers think of YouTV (and YouTube TV) and Hulu to be the leaders in the CTV market, along with Amazon and Roku, but they see value in mid-tier publishers as well.

In the survey, 58% of advertisers believe those mid-tier publishers are essential to keep CTV costs down and 64% think they can achieve their reach goals by bundling mid-tier options. Advertising with mid-tier publishers carries a great risk of brand safety or fraud, 60% of those served said.

“Advertisers want reach, but they won’t settle for it at any cost, especially when it comes to brand, environment and audience accountability," said Lauren Fisher, executive VP, business intelligence at Advertiser Perceptions.