NEW YORK—A new report from IAB highlights many of the major trends transforming the ad business, including data suggesting that 89% of ad buyers are embracing alternative measurement currencies, as well as some of the ongoing problems facing the digital advertising business.
The newly released second half of its “2024 IAB Digital Video Ad Spend & Strategy Report,” revealed that the three major digital video channels will see increased spend in 2024 and 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.
The report also highlighted, however, ongoing problems with measurement. Two in three buyers cite measurement issues with small advertisers aiming for niche audiences rather than broad reach are significantly more likely to report issues.
“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.”
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.”
The full “2024 IAB Digital Video Ad Spend & Strategy Report” is available here.
