Two in three advertisers using Connected TV and OTT intend to increase their spending, with an average rise of 23%.
That’s a key finding from the just-released 2023 CTV/OTT Advertiser Survey courtesy of two businesses that rely on this growth to fuel their operations.
The survey was released by Advertiser Perceptions, and was commissioned by TEGNA-owned PREMION to conduct an advertiser study on media spending and priorities in the planning, buying, and measurement of Connected TV and OTT advertising.
Advertiser Perceptions executed an anonymous online survey among 151 ad agency or brand-side marketers involved in the decision-making for Connected TV/OTT advertising. The decision-makers were qualified as being involved in advertising strategy or budgeting decisions, media planning or buying, or vendor selection. Connected TV/OTT advertising use was required for both 2022 and 2023. Respondents were further qualified as U.S.
advertisers (national, regional, or local) spending a minimum of $250,000 annually on advertising. The study fielded in March 2023.
What does the study reveal? “Investment and optimism for Connected TV/OTT advertising remain high — and increasing expenditure is being driven by the ability to capture declining TV audiences (46%), provide the benefits of TV with digital capabilities (44%), and the ability to achieve full-funnel objectives (39%).”
Additionally, PREMION says, among advertisers who are increasing their Connected TV/OTT ad spending in 2023, 62% are reallocating their budgets from digital, social media, or linear TV to fund their increased spend on Connected TV/OTT advertising, while one in three advertisers are utilizing new ad budgets for this purpose.
That bodes well for TEGNA’s seven-year old PREMION, which needs such growth to justify its existence.
In terms of budget control, the study findings indicate that 52% of Connected TV/OTT budgets are now primarily controlled by integrated/hybrid buying teams — signaling 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,” says Premion President Tom Cox. “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 personalized ads in engaging content through premium inventory, and driving business outcomes has cemented streaming TV as a winning strategy for advertisers.”
RBR+TVBR does not use “CTV” to describe Connected TV, to avoid confusion with the Bell Media broadcast TV network seen across Canada known as CTV.
The Premion report also finds that three out of four Connected TV/OTT advertisers view Connected TV/OTT advertising as an extension of their linear TV strategy — and two out of three advertisers agree that combining linear TV with Connected TV/OTT advertising increases brand awareness and improves overall ROI performance throughout the entire
marketing funnel.
According to advertisers, the top-ranking benefits of Connected TV/OTT advertising are found to be achieving brand awareness and performance marketing goals (38%), leveraging the advantages of TV with digital capabilities (38%), extending the reach of linear TV campaigns (37%), and capturing declining TV audiences (37%). Additionally, 86% of Connected TV/OTT advertisers believe that Connected TV/OTT’s value is greater than, or equal to, that of primetime TV, with 44% saying that Connected TV/OTT is more valuable.
Among the key audience and measurement findings:
• Seven in 10 Connected TV/OTT advertisers agree that Connected TV/OTT allows them to target audiences locally in ways that are not possible with linear TV.
• Advertisers say brand lift (42%), reach and frequency (41%), sales lift (37%) and linear reach extension measurement (35%) are the top KPIs for Connected TV/OTT advertising.
• More than half of Connected TV/OTT advertisers agree that co-viewing is a value-add benefit of Connected TV/OTT advertising and/or provides a like-for-like comparison to linear TV.
More than 40% of Connected TV/OTT advertisers say that Connected TV/OTT is more effective than digital video or social media in aligning with quality content and/or ensuring a brand-safe environment. In their Connected TV/OTT advertising planning and strategy, advertisers prioritize premium video content, brand safety, and ad fraud prevention as key considerations, including:
• 97% of Connected TV/OTT advertisers agree that advertising on premium video content can improve ROI performance goals.
• 87% of advertisers consider brand safety a priority in their Connected TV/OTT advertising planning and strategy, with nearly 40% considering it a top priority.
• 84% of advertisers are concerned with ad fraud in their Connected TV/OTT advertising, with over 30% being very concerned.
