DTC Marketers Leveraging CTV/OTT for Advertising Success

Direct-to-consumer (DTC) marketers are increasingly turning to connected TV (CTV) and over-the-top (OTT) digital TV advertising, with two-thirds of DTC brands currently utilising these channels, and 57% planning to increase spending in CTV/OTT in the first half of 2023. This is a significant jump from the first half of 2022, when 43% of DTC expected to up their spend. CTV is the fastest growing digital ad channel, due to its inventory and adtech precision, with brands able to deliver ads to a few hundred consumers in their target demo, or many millions, thanks to the wide range of inventory available.

Marketers also have more ways to find their customers on CTV/OTT by partnering with retail media networks. Additionally, the inventory on CTV/OTT continues to expand, with consumers now having thousands of viewing options to choose from, many of them free, while Netflix has also entered the adtech game, offering new ad opportunities alongside their premium films and series.

40% of marketers in the survey said higher-quality inventory was a reason to increase their budget for the channel, while 38% said measurement capabilities were another good reason. Of those DTC marketers spending more this year than last, 65% are first-time CTV/OTT advertisers, with 61% reallocating their budget from another channel, and 39% increasing their total media budget to allow for their CTV/OTT spending. However, DTC marketers remain unsatisfied with the current measurement capabilities of the channel, with 48% satisfied with incremental measurement, 47% with brand lift measurement, and 44% with low-funnel attribution.

Overall, DTC marketers are clearly seeing the opportunity in CTV/OTT, with many increasing their budget for the channel and new platforms and programming continuing to be added to the inventory. However, they are still seeking better ways to measure the channel’s success.

Originally reported by Martech: https://martech.org/dtc-marketers-planning-to-up-ctv-ott-spend-this-year/
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