Dec 30, 2021

2022 Digital Advertising Predictions

Key Takeaways         CTV/OTT Will Continue To Lead The Digital Ad Space As marketers continue to see diminishing returns on search and social, and a shifting privacy landscape within the duopoly (Facebook and Google) forces changes in media spend, growth marketers have begun turning to connected TV (CTV), not for branding, but…


Key Takeaways





CTV/OTT Will Continue To Lead The Digital Ad Space

As marketers continue to see diminishing returns on search and social, and a shifting privacy landscape within the duopoly (Facebook and Google) forces changes in media spend, growth marketers have begun turning to connected TV (CTV), not for branding, but for performance. There is plenty to be excited about for the future of streaming. As we move forward, we will see more brands becoming extensions of social, putting more dollars towards the CTV/OTT space, and introducing more creative, enhanced, and templated ad units. The industry will see real innovation on the creative front—as that has been a significant challenge for smaller brands getting into this channel. We’ll also see brands building out higher-quality creatives in a faster way. The future of CTV advertising will more heavily leverage non-intrusive, innovative ad formats.

CTV ad spending has far exceeded predictions and will continue to grow next year (and years after). CTV ad spend will reach $19.1b this year, up 32.3% from 2021.1 Ad spending rebounded in a very strong way in 2021, and marketing budgets have returned to normal. This is in part due to the launch and expansion of new ad-supported streaming services. CTV ad spend pricing has increased throughout the last year, which has in reaction, increased overall spend. CTV ad revenue growth will decrease slightly, following the huge spike, however, CTV ad spend will gain share of overall digital ad spending through 2025, passing 10% by 2024. The future of CTV ad spending is bright—more than doubling in 2025 to surpass $30b.1

CTV viewership increased across all generations this year compared to 2020. Gen Z and Millennial users will continue to increase through 2025. YouTube is the number one OTT platform in the U.S. when it comes to penetration among OTT video service users, with market share of 95.5%. YouTube CTV viewers grew almost 63% last year and surpassed the 50% threshold for the share of viewers who watched YouTube content on CTVs.2 In addition, YouTube was found to be the number two streaming service when comparing total hours spent watching content on CTVs in the U.S.


The Threat of Ad Fraud Will Remain

Ad fraud detection and measurement will be extremely important because the demand for inventory will outweigh the high-quality supply. Most CTV inventory is bought and sold through private markets, which prevents fraudsters’ ability to fake ad impressions. However, the demand and price of CTV inventory is increasing which results in two scenarios:

1. Advertisers are attracted by the lower pricing in the open market

2. Fraudsters are attracted by the high demand and premium they can charge on fake inventory

Last year, Pixalate, a firm that monitors ad fraud, estimated that more than 20% of programmatic OTT and CTV ad impressions were served as invalid traffic.3 Given the significantly complex ad environment, fueled by ever-changing technologies, it’s nearly impossible to eliminate fraud completely. However, there are certain steps advertisers can take to protect their brand and their budget—ensuring exposure to fraud is minimal and ad spend is directed where it’s intended. As CTV fraud increases in scope and sophistication, it’s critical for marketers to work with trusted partners that have the experience, knowledge, scale, and ability to identify and block new threats as they emerge. Check out our recent report to learn more.


The Introduction of More Sophisticated Attribution Methodologies

Models for marketing attribution have been used for many decades, but as the needs of customers have changed and companies have undergone digital transformations, marketing attribution has evolved. The roots of marketing mix models (MMMs) can be traced back to the 1950s. As campaigns become more complex in today’s multichannel world, accurate campaign measurement and attribution has become a major struggle for advertisers and agencies, and, unfortunately, many lack the time and resources to do so. Not to mention, a list of long-standing measurement and attribution problems that plague marketers, including a lack of standardized metrics and definitions across traditional and digital TV and video, issues with basic data accuracy and infrastructure, a lack of organizational alignment, and the difficulty of understanding and validating attribution models.

The truth is, attribution is evolving and advertisers need to reevaluate the methodologies they are leveraging to ensure they are assigning credit accurately. While innovations in attribution have brought the focus away from video completion rate (VCR) and toward return on ad spend (ROAS) and cost per action (CPA) metrics, those goals are merely scratching the surface of CTV measurement. Many performance marketers are looking to optimize their CTV campaign performance, but don’t know where to start. The ability to track a customer journey and measure ad impact is incredibly powerful, especially for today’s agile marketers that are laser-focused on managing and optimizing their spend with flexibility in a changing environment. Moving forward, advertisers who expand their attribution methodologies will help refine their budget strategy and ensure a lasting impact on future ad campaigns.

The Role of First-Party Data

The most important shift in digital marketing to pay attention to right now is the emerging utilization of first-party data. This data is defined, collected, and owned by the brand itself and can be more accurate and timely than that from external sources. Until opting out, these are your customers, and they have chosen to share their contact information and purchasing choices with your business. Third-party data regulations are preventing tracking, companies are needing to shift their efforts. 42% of U.S. data users will increase spending on the use of first-party data. This shift was forced due to changing regulations on third-party cookies that are being collected. With consumers increasing concern about how and what data is being collected, companies are going to need to shift how they obtain data. The highest-performing companies are taking note and starting to utilize first-party data, which will not only be a new buzzword but the foundation and future of the marketing world.

First-party data actually achieves the highest return on investment (ROI) of all data types, and most marketers actually believe that first-party data provides the best path to true customer understanding and therefore to better performance.4 Working with an experienced media partner will ensure a smooth transition to a cookieless future.

Looking Ahead

While hindsight might be 20/20, forward thinking will allow brands to stay competitive and be prepared for the inevitable shifts in consumer preferences, media consumption, and more. One thing is certain, working with a partner that specializes in diversified digital ad strategies and offers innovative technology can be a lifesaver in today’s dynamic environment. To discover how Digital Remedy helps advertisers and agencies of all sizes navigate the ever-changing digital ad space, visit