Author: Annmarie Gatti, Head of Marketing, Premion
As we enter the second half of the year, revised industry forecasts have come out on advertising spending from the likes of Magna and BIA. And the consensus is clear: CTV advertising is the fastest-growing channel. Simultaneously, we've just released our own 2023 CTV/OTT Advertiser Study, our second annual survey in partnership with Advertiser Perceptions. Together, we delved deeper to uncover what’s top-of-mind for advertisers on their media spending, sentiment, and priorities.
Our study revealed one overarching trend: investment and optimism for CTV/OTT advertising remain high. In fact, two out of three advertisers using CTV/OTT are planning to increase their spending this year. The increased expenditure is driven by several factors, including the ability to reach declining TV audiences (46%), leverage the advantages of TV combined with digital capabilities (44%), and achieve full-funnel marketing objectives (39%).
What's more, among advertisers who are increasing their CTV/OTT ad spending in 2023, a majority (62%) are reallocating funds from their digital, social media, or linear TV budgets to fund investments in CTV/OTT advertising. Moreover, one in three advertisers are tapping into new ad budgets specifically for this.
The shift towards converged traditional TV and digital teams is accelerating and this trend is further highlighted in our study. We found that 52% of CTV/OTT budgets are now primarily controlled by integrated/hybrid buying teams — that’s up from 42% from our study last year.
Our survey also affirms the growing importance of incorporating CTV as part of a complete TV strategy. In fact, three out of four 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.
Among a few other notable findings:
For a deeper dive, we invite you to download the complete “2023 CTV/OTT Advertiser Study” here.