Connected TV

DTC Brands Increased Their CTV Ad Spend in 2021

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DTC Brands Increased Their CTV Ad Spend in 2021

3 Min Read

Last year’s growth in e-commerce saw many direct-to-consumer brands look for new avenues through which to reach eager consumers. And according to iSpot.TV, one of those channels was Connected TV. Their DTC TV Ad Trends and Insights Report found that DTC brands expanded their CTV ad spending by 12% YoY during the first six months of 2021. That growth in ad spend is expected to continue into this year—a survey from Dynata discovered that 10% of DTC marketer’s budgets will go to CTV platforms in 2022 (more than the 8% expected to go to linear). 

There are a number of reasons for this growth in ad spend. The changing interests of audiences has led many DTC brands to follow their audiences away from linear. More and more consumers have been cutting the cord on cable (or just never using a cable subscription in the first place) and instead taking the time to watch free ad-supported apps through streaming services. But perhaps even more important to DTC advertisers, campaigns run on Connected TV work—according to a study by Hulu, 82% of DTC shoppers take action after seeing an ad on CTV. Ultimately, it’s no wonder that DTC brands are taking advantage of the precise audience targeting and brand safe environment of Connected TV and continuing to up their ad spend this year.

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