Findings from Nielsen's fifth annual marketing report show that marketers have not yet become accustomed to CTV's growing role in the media landscape. The survey of more than 1,500 global marketing professionals found that only 19% of brands view OTT/CTV as "extremely effective." In marketers' perception of advertising effectiveness, CTV lags behind social media, online and mobile video.
Source: Nielsen’s fifth Annual Marketing Report.Summary
- Only 19% of brands perceive OTT/CTV advertising as “extremely effective”.
- Only 18% of those surveyed by Nielsen say they are “extremely confident” in measuring ROI from CTV ad spend.
- However, 84% of global marketers plan to invest in video streaming channels in 2023.
Some advertisers are yet to be convinced that connected TV (CTV) is as effective as other forms of digital advertising, such as social media and online video.
A survey of more than 1,500 global marketing professionals for Nielsen’s fifth Annual Marketing Report found that only 19% of brands perceive OTT/CTV as “extremely effective”. This means that CTV trails behind social media (28%), online and mobile video (28%), search (22%) and online and mobile display (21%) in marketers’ perception of advertising effectiveness.
Marketers are similarly unconvinced in their ability to accurately measure CTV. Only 18% of those surveyed by Nielsen say they are “extremely confident” in measuring ROI from CTV ad spend, compared to 29% for social media and 23% for online and mobile video. Marketers show a similar level of scepticism about podcasts and digital audio measurement.
These fears have not stopped marketers from allocating budget to CTV campaigns, however. Nielsen found that 84% of global marketers plan to invest in video streaming channels in 2023, while nearly a fifth (18%) say they are planning to increase OTT/CTV budgets by more than 50% year-on-year, up from only 13% making the same commitment in 2022.
Brands investing in CTV are following shifting consumption patterns among audiences. In the US, American viewers watched more than 19 million years’ worth of streaming content in 2022, Nielsen claims. The trend is global, too: in Mexico, streaming had grown to account for 15.2% of total TV usage as of December 2022, while streaming content reaches more than 50% of Thai TV audiences.
Source: warc.com
