Two thirds of CTV/OTT advertisers to increase spending
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Editor
| 30 June 2023
As many as two in three advertisers using connected TV (CTV) and over-the-top (OTT) services will increase spending, with an average increase of 23%, according to research from Premion.
Premion ad study 30June2023
The CTV/OTT Advertiser Survey was based an anonymous online survey in March 2023 among 151 ad agency or brand-side marketers involved in advertising strategy or budgeting decisions, media planning or buying, or vendor selection for CTV/OTT advertising. Connected TV/OTT advertising use was required for both 2022 and 2023.

The data showed that investment and optimism for CTV/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%).

Three-quarters of CTV/OTT advertisers view CTV/OTT advertising as an extension of their linear TV strategy — and two out of three advertisers agree that combining linear TV with CTV/OTT advertising increases brand awareness and improves overall ROI performance throughout the entire marketing funnel.

According to advertisers, the top-ranking benefits of CTV/OTT advertising were 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 CTV/OTT advertisers believe that CTV/OTT’s value is greater than, or equal to, that of primetime TV, with 44% saying that CTV/OTT is more valuable.

Additionally, among advertisers who are increasing their CTV/OTT ad spending in 2023, a majority (62%) were seen to be reallocating their budgets from digital, social media, or linear TV to fund their increased spend on CTV/OTT advertising, while one in three advertisers are using new ad budgets for this purpose.

In terms of budget control, the survey findings indicated that 52% of CTV/OTT budgets are now primarily controlled by integrated/hybrid buying teams — signalling the growing trend towards a more converged and unified approach within linear TV and digital advertising teams.

More than 40% of CTV/OTT advertisers said CTV/OTT was more effective than digital video or social media in aligning with quality content and/or ensuring a brand-safe environment. In their CTV/OTT advertising planning and strategy, advertisers were prioritising premium video content, brand safet, and ad fraud prevention as key considerations.

"Advertisers have not only embraced CTV advertising but are shifting even more dollars away from other channels to bolster their CTV ad budgets," said Premion president Tom Cox commemnting . "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 personalised ads in engaging content through premium inventory, and driving business outcomes has cemented streaming TV as a winning strategy for advertisers."