CTV attracts 45% of investments, but the perceived effectiveness of efforts is only 49%
Streaming is already part of the media plan of 84% of the 1,524 professionals in
marketing surveys heard by Nielsen around the world, including Brazil, between December 7th and 21st, 2022. However, less than half believe in the effectiveness of the investment. Without reliable measurement data, it is not possible to make fully informed media mix decisions. This can limit brands’ ability to plan and effectively achieve their key commercial objectives, posing a business risk, warns Sabrina Balhes, measurement leader at Nielsen Brasil.
The index is driven by the expansion of connected TV (CTV), which has increased media fragmentation and measurement complexity in the online environment. Only 54% of respondents trust measuring ROI on digital channels, and 62% use multiple solutions, making it difficult to be confident in the results. Even so, 64% expect an increase in budgets this year. Social media (24%), online display (21%), online video (21%) and OTT/CTV (18%) are projected to increase by more than 50% in 2023.
In the United States, digital video ad spend in 2022 is up 171% year-over-year. In Puerto Rico, Mexico and Brazil, digital ads totaled US$24.5 billion, up 228% between 2021 and 2022. Of this amount, US$14.2 billion (58%) were allocated to digital video.
In France, Denmark and the United Kingdom, spending on this format jumped from US$ 2.3 billion in the first three quarters of 2020 to US$ 4.2 billion in 2022.
The numbers reflect the migration of the audience to streaming. On average, 45% of ad budgets are shifting to CTV globally. Even so, the perception of effectiveness of investments in connected TV and streaming is only 49%. Confidence is also low in the holistic measurement of ROI.
Read the full story in the May 8 issue
