A study by Premion and Advertiser Perceptions, which revealed that 61% of marketers who run ads on CTV and over-the-top TV intend to raise their expenditure on such channels, serves as another reminder of the appeal of ad-supported connected TV.
These advertisers anticipate an average 21% rise in spending.
The study found that 83% of CTV/OTT marketers think their platform is more useful than primetime TV, or at least on par with it, with 36% believing it to be more valuable.
A comparable research was produced by Premion the previous year.
READ MORE: CTV Commercials Deliver More Attention Than Other Digital Video Formats According To Research
“To increase their CTV ad budgets, advertisers are increasingly diverting dollars from other channels,” stated Daniel Spinosa, president of Tegna’s Premion division, which markets CTV and OTT to regional and local advertisers.
As part of a comprehensive TV strategy to deliver full-funnel brand goals, marketers are increasingly prioritizing CTV, according to Spinosa, “because our study validates that it is a valuable channel for achieving KPIs.” “They are utilizing advanced targeting and measurement techniques to precisely gauge its influence and produce noteworthy business results.”
The study discovered that because CTV/OTT advertising can accomplish full-funnel objectives, reach an audience that has opted in and is highly engaged, advertisers were spending more.
READ MORE: 75% Of All CTV Transactions Are Programmatic
The majority of the additional money spent on CTV/OTT advertising came from reallocating funds from digital, social media, and linear TV advertising. Just 26% of respondents stated they were increasing their CTV spending by using new ad budgets.
Notably, 74% of those planning to increase their CTV/OTT ad spend in 2024 are repurchasing funds from digital, social media, or linear TV, and 26% are utilizing brand-new ad budgets to support this expansion.
Seven out of ten advertisers agree that combining linear TV with CTV/OTT advertising improves full-funnel return on investment, increases ad recall, and strengthens brand awareness. Eighty percent of CTV/OTT advertisers view commercials on those platforms as an extension of their linear TV strategy.
READ MORE: Problematic Ads In CTV: The Perils Of Programmatic Dreams
Almost all of the marketers stated that they collaborate with many CTV/OTT providers, with 40% utilizing over five providers on average during a normal campaign.
By 2024, half of all CTV/OTT advertising is anticipated to be bought programmatically, according to the poll.
Premion commissioned Advertiser Perceptions to carry out the April study, which involved an anonymous online survey of 150 brand-side or ad agency marketers who invested a minimum of $250,000 a year in CTV/OTT advertising in 2023 and 2024.
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