More than Half of Advertisers Using CTV/OTT Will Increase Spending, According to New 2022 CTV/OTT Advertiser Survey

Rising Investment in CTV Advertising Fueled by its Ability to Precision Target and Achieve Full-funnel Objectives

More than half of advertisers using CTV/OTT will increase spending, with an average increase of 22%, according to a new 2022 CTV/OTT Advertiser Survey released by Advertiser Perceptions and Premion, the leading premium CTV/OTT advertising solution for regional and local advertisers.

The survey reveals that investment and optimism for CTV advertising are already high and continuing to rise fueled by its ability to precision target and achieve full-funnel brand goals. The report finds that 66% of advertisers are shifting budgets from digital, social and linear TV to fund CTV/OTT spend increases, while 30% say that funding will come from an overall increase in ad budgets. Additionally, more than four in five advertisers believe that the value of Connected TV/OTT is greater than, or equal to, that of primetime TV, with two in five saying the channel is more valuable.

“Advertisers have embraced CTV and they’re shifting bigger budgets to the medium as an essential buy for driving brand awareness and performance marketing,” said Tom Cox, President of Premion. “Our study validates that CTV has become an invaluable channel for brand marketers and agencies to follow their audiences, plan with data-driven targeting, and measure with outcomes-based performance. New data capabilities make CTV even more compelling for advertisers to gain a complete understanding of audience behaviors and to connect viewership to direct business results.”

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Achieving Brand Awareness and Performance Marketing Goals Seen as Significant Advantages

When considering performance, 43% of marketers cite that CTV/OTT spend increases are driven by the ability to achieve brand awareness and performance marketing goals. Precision audience targeting and  extended reach for linear TV campaigns top the list of CTV advertising audience benefits. While reach and frequency, as well as driving brand lift and sales lift, are the top ad campaign metrics, many advertisers are still measuring CTV via website visits and impressions by network.

Among the key audience and measurement findings:

  • 56% of advertisers say the ability to precision target audiences is the top reason for increasing CTV/OTT spending in 2022.
  • Nearly 70% of advertisers agree that CTV/OTT allows them to target audiences locally in ways that are not possible with traditional TV.
  • Four in five advertisers consider the availability of custom audience segments very or somewhat important.
  • One in two advertisers use impressions and increase in brand awareness to evaluate campaign ROAS (return on ad spend).

Brand Safety, Ad Fraud Protection and Premium Video Content are Top Priorities

The proliferation in streaming options brings more media buying options for advertisers to navigate, especially when it comes to understanding the quality and sources of inventory. The study finds that brand safety and ad fraud protection remain top-of-mind for CTV/OTT advertisers, including:

  • Nine in 10 advertisers consider brand safety a priority in their CTV/OTT advertising planning and strategy.
  • Four in five advertisers consider ad fraud prevention a priority in their CTV/OTT advertising planning and strategy.
  • Nine in 10 advertisers consider it a priority to include premium video content in their CTV/OTT advertising.
  • 97% of CTV/OTT advertisers agree that advertising on premium video content can improve ROI performance goals.

The complete “2022 CTV/OTT Advertiser Study” can be downloaded here.

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Premion commissioned Advertiser Perceptions to conduct an advertiser study on media spending and priorities in the planning, buying, and measurement of CTV/OTT advertising. Advertiser Perceptions executed an anonymous online survey among 151 ad agency or brand-side marketers involved in the decision-making for CTV/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 2021 and 2022. Respondents were further qualified as US advertisers (national, regional, or local) spending a minimum of $250,000 annually on advertising.  The study fielded in March 2022.

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