Direct-to-consumer (DTC) marketers are flooding into connected TV (CTV) and over-the-top (OTT) integer TV advertising, according to a caller survey from integer show media institution Digital Remedy and probe steadfast Dynata. Over two-thirds of DTC brands usage these channels, and 57% program to summation spending successful CTV/OTT successful the archetypal fractional of 2023. This is simply a important leap successful involvement from the archetypal fractional of 2022, erstwhile 43% of DTC expected to up their spend.

Why we care. CTV is the fastest increasing integer advertisement channel due to the fact that of its inventory and adtech precision. Brands tin acceptable a run into a fund of immoderate size. They tin present ads to a fewer 100 consumers successful their people demo, oregon galore millions. That’s each owed to the wide scope of inventory available, from escaped ad-supported services up to precise premium opportunities connected ad-supported streamers similar Netflix. 

Marketers besides person much ways to find their customers connected CTV/OTT by partnering with retail media networks.

Dig deeper: CTV added to Kroger’s retail media business

Higher-quality inventory. New platforms and programming proceed to beryllium added to CTV/OTT inventory. Consumers present person thousands of viewing options to take from, galore of them free. Additionally, Netflix entered the adtech crippled past year, offering caller advertisement opportunities alongside their premium films and series.

All of this has spurred DTC advertisers to dip into CTV/OTT. Forty percent of marketers successful the survey said higher-quality inventory was a crushed to summation their fund for the channel. And 38% said measurement capabilities were different bully reason.

First-time advertisers. Of those DTC marketers spending much this twelvemonth than last, 65% are first-time CTV/OTT advertisers.

Where are the dollars coming from? Sixty-one percent accidental the fund is reallocated from different channel, similar societal media, hunt oregon mobile apps, portion 39% said they accrued their full media fund successful bid to let for their summation successful CTV/OTT spending.

Measurement. Another takeaway from the survey is that galore DTC marketers are demanding improvements to measurement. Less than fractional (48%) of respondents said they’re satisfied with their existent media partner’s incremental measurement. Nearly arsenic galore (47%) said they were satisfied with marque assistance measurement. Satisfaction with low-funnel attribution was adjacent little (44%).

DTC marketers spot the accidental successful CTV/OTT, adjacent arsenic they question amended ways to measurement the channel’s success.