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Competitive Info: OTT, CTV Effectiveness Questioned.

Most marketers include streaming platforms in their media plans, yet only about half view over-the-top (OTT) and connected TV (CTV) as effective advertising channels, according to a new report by Nielsen.

The fifth annual report, based on a survey of nearly 2,000 global marketers in December 2022, found that advertisers and agencies lack data that lets them fully understand their audiences’ affinities.

Only 53% of marketers are confident of full-funnel measurement, and 69% agree that digital media and audience fragmentation in the age of streaming poses significant challenges in their reach of target audiences.

Among the findings in the report:

Confidence in holistic ROI measurement is low: Though 71% of marketers said cross-media measurement is important, cross-media ROI measurement remains elusive.

Planned channel investments transcend perceived efficacy: Marketers report mild degrees of effectiveness across channels. Effectiveness is judged lowest for podcasts, CTV, streaming audio and native advertising, yet planned increased investment in those channels range from 38% to 42%.

Marketers are under-spending: The report found that most brands were under-spending — by a median of 50% — to achieve maximum ROI. But cutting spending more could suppress ROI even further.

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