CTV ad spending is projected to grow significantly in the coming years. According to the 2022 CTV/OTT Advertiser Survey from Advertiser Perceptions and Premion, more than half of advertisers intend to increase their spending in this category. The average increase in CTV/OTT ad budget is expected to be 22%.
The report also found that the majority of advertisers believe that CTV/OTT advertising has greater value than primetime TV. And, 43% of marketers said that CTV/OTT spending growth is driven by performance marketing and brand awareness goals. Among the benefits of CTV advertising, the most significant ones are precision audience targeting and extended reach for linear TV campaigns. Ad campaigns that are based on this form of advertising are measured based on a number of metrics, including reach and frequency, brand lift, and sales lift.
Connected TV advertising has grown rapidly in recent years. Last year, advertisers spent $10.3 billion on connected TV programmatic display ads. By 2022, connected TV ad spending is expected to reach $11 billion annually. The industry is still in its infancy, however.
CTV/OTT advertising is expected to continue growing as advertisers realize that the channel allows advertisers to target local audiences more efficiently. Moreover, nearly 70% of advertisers think that CTV/OTT gives them the opportunity to reach local audiences. Another important benefit is the ability to build custom audience segments. Almost half of advertisers use impressions to measure their campaign’s return on investment (ROAS). And, more importantly, nine out of 10 marketers consider brand safety and ad fraud prevention as a top priority.