Reaching nearly $20b in revenue worldwide this year, the direct-to-consumer (DTC) market is expected to continue growing, with no signs of slowing down. Driven by the surge in over-the-top (OTT) content consumption via streaming services in recent years, advertisers are increasingly shifting media budgets to this growing channel to deliver their brand messaging to the right consumers at the right times in an engaging ad environment—but many DTC brands have yet to make the move to OTT. DTC marketers who are not spending on CTV/OTT, run the risk of missing out on reaching valuable customers where they are consuming media. While social has long been the go-to media channel for DTC brands, roughly 70% of DTC consumers say they spend more time watching streaming TV each week than they spend on social media.
In July of 2021, Digital Remedy partnered with Dynata, the world’s largest first-party data platform for insights, activation, and measurement, to field a custom survey targeting U.S. DTC marketers—with the goal of gaining a deeper understanding of the role that connected TV (CTV) and OTT play in their media mix, current practices, expected ad spending and top priorities for 1H 2022, and “must-haves” when choosing a media partner to execute OTT campaigns (including a full explanation of the streaming world).
- In the next 12 months, key priorities for DTC marketers will be increasing brand awareness (31% rank this #1) and sales growth (another 31% rank this #1).
- 29% of DTC marketers who are not allocating any spending to CTV/OTT in 1H 2022 say they will spend on this media sometime in the future.
- 43% of those who allocated budget to CTV/OTT in 1H 2021 will spend more in 1H 2022 in this area.
- Nearly 50% of DTC marketers who plan to spend more on CTV/OTT in 2022 say it will be the brand’s first time investing in the space.
- Offering brand lift measurement would have the most impact on convincing DTC marketers to increase their CTV/OTT budget (50%).
For full insights from the study, download the 2022 DTC + CTV/OTT Advantage Report.
Whether you’re a DTC marketer just getting started in the CTV/OTT space or looking to take your campaigns to the next level, Digital Remedy is here to help. Flip, our Award-winning proprietary performance CTV platform, connects the dots between CTV ad views and real-world results, providing a full picture of the consumer journey and ensuring marketers get the most impact out of their budget. To find out more, visit www.digitalremedy.com/flip or schedule a free custom demo.
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