Another reminder of the popularity of ad-supported connected TV comes in a survey by Premion and Advertiser Perceptions which found that 61% of the marketers that advertise on CTV and over-the-top TV plan to increase their spending on those channels.
On average, those advertisers expect spending to increase by 21%.
According to the study, 83% of CTV/OTT advertisers believe that CTV/OTT’s value is greater than, or equal to, that of primetime TV, with 36% saying that CTV/OTT is more valuable.
Premion released a similar study last year.
“Advertisers are increasingly shifting dollars from other channels to boost their CTV ad budgets,” Daniel Spinosa, president of Premion, the Tegna unit dedicated to selling CTV and OTT to local and regional advertisers, said.
“Our study validates that CTV is a valuable channel for achieving KPIs, and advertisers are increasingly prioritizing it as part of a complete TV strategy to drive full-funnel brand goals,” Spinosa said. “They are harnessing sophisticated targeting and measurement capabilities to effectively measure its impact and drive significant business outcomes.”
The study found that advertisers were spending more because of CTV/OTT advertising’s ability to achieve full-funnel objectives; reach a highly engaged, opted-in audience; and conduct precision targeting.
The incremental spending on CTV/OTT advertising was overwhelmingly the result of budgets reallocated from digital advertising, social media and linear TV. Only 26% said they were tapping new ad budgets to increase CTV spending.
Among those increasing their CTV/OTT ad spend in 2024, a notable 74% are reallocating budgets from digital, social media, or linear TV, while one in four (26%) are tapping into new ad budgets to fuel this growth.
Eighty percent of CTV/OTT advertisers see ads on those platforms as an extension of their linear TV strategy, while around seven in 10 advertisers agree that integrating linear TV with CTV/OTT advertising improves full-funnel return on investment, boosts ad recall and enhances brand awareness.
Nearly all of the advertisers said they work with more than one CTV/OTT provider, with 40% using an average of more than five providers on a typical campaign.
Half of all CTV/OTT advertising is expected to be purchased programmatically in 2024, the survey found.
Advertiser Perceptions was hired by Premion to conduct the April study, an anonymous online survey of 150 ad agency or brand-side marketers who spent at least $250,000 annually on CTV/OTT advertising in 2023 and 2024.
