IAB released the second half of its “2024 IAB Digital Video Ad Spend & Strategy Report,” revealing insights into the buy-side’s selection criteria for investing in digital video channels, platforms, and media properties as well as issues with measurement and how those are being mitigated.
“The industry has bought, transacted, and measured against reach since the beginning of time,” said Cintia Gabilan, Vice President, Media Center, IAB. “But now business outcomes are the most important metrics to assess success, with reach and frequency coming in second. However, measurement is not yet where it needs to be. Two-thirds of buyers cite issues across nine key areas of measurement.”
The report, available here, was released at the IAB Video Leadership Summit (VLS), the annual agenda-setting event where senior leaders across the converging TV and digital video space gather to discuss the industry landscape.
KEY INSIGHTS FROM PART TWO OF THE REPORT INCLUDE:
Three-Quarters of CTV Buying Is Now Programmatic
Within that, activation is roughly equal among the real-time bidding (RTB) / open exchanges (36%), private marketplaces (PMP) / preferred deals / programmatic guaranteed (34%), and ad networks (30%).
Buyers Are Spending More Across All Video Channels and Content Types
Part one of the report, released earlier this year, revealed that the three major digital video channels will see increased spend in 2024. Part two reveals that buyers are investing across all video content types, from short-form to long-form to creator and immersive. Short-form (69%) and vertical-format (68%) account for the largest share of buyers.
Performance Advertising Needs Better Measurement
Business outcomes like sales, store/site visits, and leads are now the most important KPI for buyers, across all channels — social video (64%), online video (58%), and connected TV / CTV (54%).
Yet two in three buyers cite measurement issues. In particular, small advertisers aiming for niche audiences rather than broad reach are significantly more likely to report issues with viewability, standardized targets, currency, and obtaining sell-side data. Streaming networks hoping to further tap the “long tail” will need to boost buyer confidence.
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