More than 8 in 10 (82% of) US households have at least one connected TV (CTV) device, and advertisers are seeing the viability of CTV advertising. According to data from Advertiser Perceptions, 90% of video advertisers are running CTV ads, with these respondents averaging $33 million in spend per year.
Spending is anticipated to increase next year, with 56% of the more than 300 advertisers surveyed saying they expect their CTV advertising spending to grow in the next 12 months. These marketers plan to dedicate one-third of their video spending to CTV. Even beyond next year, other research shows that spending on CTV advertising will only continue to grow.
It does appear that agencies are a bit behind marketers getting on board with CTV. They are more likely than marketers to have purchased linear TV advertising in the past 12 months (74% of agencies vs. 58% of marketers). Marketers (41%) are also more likely than agencies (25%) to believe that TV is more important than digital video. As Advertiser Perceptions puts it, “agencies have roots in linear TV,” while “marketers are more likely to be digital-first.”
Although a majority of brands and agencies alike are drawing their CTV budgets from linear TV, agencies (43%) are more likely than marketers (24%) to do so, per this data. However, on a whole, survey respondents are mostly drawing CTV advertising funding from digital video budgets (64%; top 3 ranked) and general advertising budgets (47%).
Advertisers plan to buy more CTV ads from advertising video-on-demand (AVOD) platforms in the coming year. At present only about two-thirds (64%) are buying from AVOD platforms. Yet, next year, 71% expect to buy from these platforms, while 70% will buy from device manufacturers and 62% from vMVPDs.
Additionally, 9 in 10 (92% of) respondents say they have purchased CTV ads programmatically in the past year. These respondents have reported several benefits including better pricing, easier optimization, and a greater ease in achieving scale. Many also consider the ability to activate video campaigns from a single platform as one of the benefits of buying CTV inventory programmatically.
Nevertheless, they are also running into barriers when purchasing programmatically. Most cite a lack of transparency concerning which publishers air their ads, less control over the ad buy, brand safety and lack of transparency of ad tech fees.
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About the Data: Findings are based on a May survey of 306 advertisers (50% marketers, 50% agency).