IAB Eric John New Fronts 2022
Despite the fact that 36% of the time that the audience spends watching content is on connected TV (CTV), the annual advertising investment on this platform will only reach 18% in 2022, according to the Video Ad Spend report, revealed this Monday by IAB within the framework of the NewFronts 2022 Stream On event. The report was presented by Eric John, VP of the IAB Media Center.
According to the report, of those media buyers who plan to invest more in CTV, 73% plan to invest by withdrawing funds from the linear TV budget; 46% will do it through the general expansion of the advertising budget; 32% move backgrounds from non-digital video ads; 25% by withdrawing funds from social media and other digital videos and 23% said that investing in CTV would not decrease the advertising dollars they place on TV or digital.
The IAB’s report highlighted that digital video ad spending grew 49% year-on-year between 2020 and 2021 and is expected to climb to 26% to reach $49.2bn in 2022. CTV spending increased 57% year-on-year in the same period and is expected to go up 39% to reach US$21.2 billion in 2022.
Among the CTV challenges that media buyers mentioned in the IAB survey, more than a third indicated measurement, interoperability, price, fragmentation, and scale. Regarding the benefits, respondents said that CTV allows buyers to take advantage of many kinds of data not available on linear TV.
