Most marketers include streaming platforms in their media plans, yet only about half view over-the-top (OTT) and connected TV (CTV) as effective advertising channels, according to a new report by Nielsen.
The fifth annual report, based on a survey of nearly 2,000 global marketers in December 2022, found that advertisers and agencies lack data that lets them fully understand their audiences’ affinities.
Only 53% of marketers are confident of full-funnel measurement, and 69% agree that digital media and audience fragmentation in the age of streaming poses significant challenges in their reach of target audiences.
Among the findings in the report:
Confidence in holistic ROI measurement is low: Though 71% of marketers polled said cross-media measurement is important, cross-media ROI measurement remains elusive.
Planned channel investments transcend perceived efficacy: Marketers report mild degrees of effectiveness across channels. Effectiveness is judged lowest for podcasts, connected TV, streaming audio and native advertising, yet planned increased investment in those channels range from 38% to 42%.
Investment in martech is declining: Despite expected increased ad budgets, 24% of global marketers plan to reduce their investment in martech, with 12% planning cuts of 150% or more.
Marketers are under-spending: The report found that most brands were under-spending—by a median of 50%—to achieve maximum ROI. But cutting spending more could suppress ROI even further.
"In a complex media world, with channel proliferation and changing consumer behavior, comparability can ensure data and measurement integrity and consistency leading to clarity and true outcomes success," said Jamie Moldafsky, chief marketing and communications officer, Nielsen. "With an eye on the future, true cross-media measurement requires transformative thinking that puts the audience ahead of a growing assortment of tools and solutions that measure at the channel level."