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.