More than half (57%) who currently leverage CTV/OTT plan to increase spend vs. one year ago
NEW YORK, April 12, 2023 — Digital Remedy, a performance media partner for brands and agencies, today announced new findings from its “CTV/OTT: The Next Frontier of DTC Marketing” report, which surveyed U.S. based direct-to-consumer (DTC) marketers to understand the growing influence of CTV/OTT in their marketing budgets and media strategies in 2023.
The report found that over two-thirds (67%) of DTC marketers leverage CTV/OTT insights to influence their linear strategies. In leveraging a convergent strategy that pairs linear and CTV/OTT, these marketers have an opportunity to target key metrics at the household level while avoiding oversaturation.
Additional key findings include:
Investment in CTV/OTT rises year-over-year
Of DTC marketers planning to spend on CTV/OTT in 1H 2023, 57% plan to spend more this year, versus 43% in 1H 2022. Access to higher quality OTT inventory (40%) and brand lift measurement capabilities (38%) would have the most impact on convincing DTC marketers to increase their CTV/OTT budget.
CTV/OTT generates a new wave of budget allocation and ad spend
65% of DTC marketers who plan to spend more on CTV/OTT in 1H 2023 say it will be their first time investing in this media channel altogether. Among those who plan to spend more in CTV/OTT, 61% say the budget will be reallocated from another media channel (i.e. search and social, mobile apps, and digital display), while 39% say they will increase their total media budget to allow for increased investment on CTV/OTT.
CTV provides a leg up in a cookieless world
Nearly a quarter of DTC marketers say that their advertising campaigns (targeting or measurement abilities) have been affected by recent data privacy regulations. CTV offers the ability to measure online and offline conversions to understand the true impact of campaigns, taking the guesswork out of attributing ROI. For DTC marketers, high brand awareness, product visibility, and larger reach are considered top benefits of CTV/OTT as a direct-to-consumer marketing channel.
DTC marketers are looking for stronger campaign performance insights (including more granular measurement and reporting) from their media partners
Marketers are looking for partners that can deliver on specific capabilities that their current media partners are lacking, such as real-time, automated campaign reporting and optimization. When asked about their satisfaction level, less than half say they’re satisfied with their current media partner’s incremental measurement (48%), survey-based brand lift measurement (47%), and low-funnel attribution (44%).
“CTV/OTT provides an all-encompassing performance channel that presents a wide reach, accountability and precise targeting through data analysis,” said Matt Sotebeer, Chief Strategy Officer at Digital Remedy. “Additionally, it offers a secure and captivating advertisement environment for brands. DTC marketers who aren’t investing and leveraging in CTV/OTT are missing a prime opportunity to engage with customers who are predominantly consuming media through these channels.”
The survey was conducted in December 2022 via Dynata (a leading global online market research firm) and targeted U.S.-based decision-makers at various-sized companies that sell products or services to consumers in some capacity. For full insights from the study, download the report here or visit www.digitalremedy.com.
About Digital Remedy
Digital Remedy is a leader in providing data-driven technology and services that drive measurable outcomes for marketers. Digital Remedy delivers advertisers, agencies, and brands the innovation, technology, and customer service they need to make the most of their online advertising endeavors. From media planning and execution to campaign management and full-funnel attribution, Digital Remedy provides customizable cross-channel efficiencies to solve any digital marketing challenge. Learn more at www.digitalremedy.com.
###
Media Contact:
Alysha Duff
843-997-3804