Nine in Ten Buyers Are Embracing Alternative
Measurement Currencies;
Three-Quarters of CTV Buying Is Now Programmatic
NEW
YORK, July 16, 2024 /PRNewswire/ -- Today,
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.
Alternative Measurement Currencies Are Now Widely
Used
The report found that the industry is continuing to
evolve beyond strictly panel-based, gross rating points (GRP)
ratings. 89% of advertisers are transacting, testing, or having
discussions with alternative currency measurement vendors. Buyers
value multi-screen attribution (45%) and real-time reporting (43%),
and 28% of buyers are already transacting on alternative
currencies.
"As the saying goes, 'with great power comes great
responsibility'," said David Cohen,
CEO, IAB. "With the continued impressive growth of digital video
comes demands for better measurement, viewability, standardized
data, and placement transparency. The video ecosystem must fully
commit to innovation, especially in measurement."
To create the report, IAB partnered with Guideline, which
leveraged ad billing data, other market estimates, and an
IAB-commissioned Advertiser Perceptions quantitative survey of
TV/digital video ad spend decision-makers to generate these
results.
The full "2024 IAB Digital Video Ad Spend & Strategy Report"
is available here.
About IAB
The Interactive Advertising Bureau empowers
the media and marketing industries to thrive in the digital
economy. Its membership comprises more than 700 leading media
companies, brands, agencies, and the technology firms responsible
for selling, delivering, and optimizing digital ad marketing
campaigns. The trade group fields critical research on interactive
advertising, while also educating brands, agencies, and the wider
business community on the importance of digital marketing. In
affiliation with the IAB Tech Lab, IAB develops technical standards
and solutions. IAB is committed to professional development and
elevating the knowledge, skills, expertise, and diversity of the
workforce across the industry. Through the work of its public
policy office in Washington, D.C.,
the trade association advocates for its members and promotes the
value of the interactive advertising industry to legislators and
policymakers. Founded in 1996, IAB is headquartered in New York City.
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SOURCE Interactive Advertising Bureau (IAB)