Budgets For Local OTT, CTV Advertising Taking Media Dollars From Broadcast, Cable TV, Other Media

Local media agency executives say multiple existing budgets are being tapped when it comes to media dollars for connected TV (CTV) and OTT from their clients -- with broadcast and cable the biggest areas, according to a Borrell Associates survey.

In addition, respondents to the survey say nearly 40% of CTV and OTT media schedules are coming from newly created budgets.

Answering the question -- “When you bought OTT/connected TV ads where did the budget come from?” -- responses came in at 57% for broadcast TV and 42% for cable tv. But 37% also said new budgets are being created for CTV and OTT media schedules.

Borrell Associates says the preliminary results come from a local agency survey of 224 executives conducted from August through October.

Other areas that are being tapped include radio at 25%, print at 23%, paid search at 5% and social media at 5%.

The research shows that 6% of dollars are coming from “non-advertising areas.” Another 8% of agency executives said they did not know where CTV and OTT client budgets came from.

Borrell also notes that 70% of respondents believe CTV and OTT budgets have become more effective during the COVID-19 pandemic, with 61% saying they have increasing spending for commercials running on streaming platforms.



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