NEW YORK—While YouTube recently reported slower than expected growth in its ad revenue for Q2 2024, a new survey indicates that many advertisers still have a relatively bullish view of the CTV/OTT ad market. Three out of five advertisers (61%) using CTV/OTT said they will increase spending, with an average increase of 21%, according to a new 2024 CTV/OTT Advertiser Survey released by Advertiser Perceptions and Premion.
The survey reveals increasing investment and optimism in CTV/OTT advertising — with spending increases driven by the ability to achieve full-funnel objectives (41%), reach a highly-engaged opt-in audience (40%), and precision audience targeting (38%). Among those increasing their CTV/OTT ad spend in 2024, a notable 74% are reallocating budgets from digital, social media, or linear TV, while one in four (26%) are tapping into new ad budgets to fuel this growth.
“Advertisers are increasingly shifting dollars from other channels to boost their CTV ad budgets," said Daniel Spinosa, president of Premion. "Our study validates that CTV is a valuable channel for achieving KPIs, and advertisers are increasingly prioritizing it as part of a complete TV strategy to drive full-funnel brand goals. They are harnessing sophisticated targeting and measurement capabilities to effectively measure its impact and drive significant business outcomes."
Other key findings include:
- In terms of budget control, the study finds that more than half (56%) of CTV/OTT budgets are now primarily controlled by integrated/hybrid buying teams, indicating a growing shift towards a unified TV buying approach across linear TV and digital advertising teams.
- Four in five (80%) CTV/OTT advertisers view CTV/OTT advertising as an extension of their linear TV strategy, while seven in 10 advertisers agree that integrating linear TV with CTV/OTT advertising improves full-funnel ROI performance (74%), boosts ad recall (74%), and enhances brand awareness (71%).
- Advertisers are embracing the value of CTV advertising for its advanced targeting and measurement capabilities. Precision audience targeting (39%) tops the list of CTV/OTT advertising benefits, closely followed by capturing declining TV audiences (38%) and achieving full-funnel objectives (37%). One in three CTV/OTT advertisers emphasize the importance of building custom audiences (34%), with contextual and interest/behavior-based targeting cited as important most often.
- Key reporting metrics for CTV/OTT ad campaigns include brand lift (45%), reach & frequency (37%), and sales lift (32%). Additionally, more than half of CTV/OTT advertisers (57%) agree that co-viewing is a valuable benefit, as it aligns CTV/OTT with linear TV practices, simplifying evaluation, planning, and measurement across both platforms.
- A vast majority of advertisers (97%) work with more than one CTV/OTT provider, with 40% using an average of more than five providers on a typical campaign — reflecting the diversity and reach sought by CTV advertisers. Moreover, 50% of all CTV/OTT advertising is expected to be purchased programmatically in 2024, underscoring that advertisers are increasingly adopting a multifaceted approach to activating CTV campaigns, with both programmatic and managed services.
- Advertisers prioritize premium video content (89%), ad fraud prevention (84%), and brand safety (83%) in their strategic planning, emphasizing the importance of premium quality in CTV campaigns. Moreover, 83% of CTV/OTT advertisers believe that CTV/OTT’s value is greater than, or equal to, that of primetime TV, with 36% saying that CTV/OTT is more valuable.
- Additionally, 53% of CTV/OTT advertisers say CTV/OTT is more effective than social media in ensuring a brand-safe environment, while 42% say it is more effective in measuring campaign effectiveness and aligning with quality content.
- When it comes to challenges of CTV/OTT advertising, transparency on where ads are running (39%), fragmentation (39%), and ad frequency management (37%) rank as the top three concerns.
"Transparency should be a given. Advertisers need clarity on what they are buying and where their ads are running. They should partner with trusted providers that offer accurate data targeting and verification against served impressions,” added Spinosa.
The complete “2024 CTV/OTT Advertiser Study” can be downloaded here.
