With the majority of connected-TV (CTV) viewers opting to watch ad-supported content, it shouldn’t come as a surprise that many advertisers plan to up their investment in CTV in the coming year. And, a report [download page] from MNTN and Digiday suggests that the shift towards CTV has come at the expense of linear TV budgets.
About 6 in 10 (58% of) survey respondents have shifted marketing dollars away from linear TV in order to support their CTV strategy. To a lesser extent, some respondents are also shifting their budgets away from social media (41%) and web display advertising (34%) towards CTV.
This shift of focus and investment to CTV is not entirely new. While fewer than 1 in 5 (16%) say that they started shifting the investment to CTV less than one year ago, the majority (55%) have done so between 1 and 3 years ago. This year, more than two-fifths (44%) of respondents devoted at least 40% of their budgets to CTV, and an even larger share of respondents (52%) are planning to invest that much of their budgets to CTV next year.
It looks as though the organizations using CTV advertising are relying primarily on either their in-house brand marketing team (32%) or a hybrid of their in-house and performance teams (35%). And, in order to target CTV audiences, these teams are using a mix of first-party data (61%), third-party data (61%), as well as geolocation targeting (55%) and contextual targeting (51%).
The two main KPIs CTV marketers are using to measure success are brand awareness and impressions/views, and it looks as though most are experiencing success, as 7 in 10 (71%) have seen increased brand awareness and more than half (54%) have enjoyed increased brand engagement. Although marketers are encountering challenges such as inventory fragmentation and reaching relevant audiences, they also report benefits such as a stronger connection between digital and TV, engaging creative formats and precise targeting.
The full report can be found here.
About the Data: Findings are based on a survey of 123 brands and agencies.