IAB has just released the second half of its 2024 IAB Digital Video Ad Spend & Strategy Report at the IAB Video Leadership Summit (VLS). This comprehensive report provides valuable insights into the current state of the digital video ad market, focusing on buy-side investment criteria, measurement challenges, and evolving trends in the video advertising landscape.

1. Key Insights from the Report

• Programmatic CTV Dominates:

  • Three-Quarters of CTV Buying Programmatic: CTV advertising is now largely programmatic, with real-time bidding (RTB) and open exchanges accounting for 36%, private marketplaces (PMP) and similar deals at 34%, and ad networks at 30%.

• Increased Investment Across Video Channels:

  • Rising Spend Across All Video Content Types: Buyers are expanding their investments across various video formats, including short-form (69%), vertical-format (68%), long-form, creator content, and immersive experiences.

• Performance Advertising and Measurement Challenges:

  • Shift to Business Outcomes: Business outcomes like sales and site visits are now the primary metrics for success, surpassing traditional metrics like reach and frequency.
  • Measurement Issues: Two-thirds of buyers face problems in measurement across nine key areas, including viewability, standardized targets, and data access for niche audiences.

• Adoption of Alternative Measurement Currencies:

  • Widespread Use of New Metrics: 89% of advertisers are exploring or using alternative measurement currencies beyond traditional GRPs, with a focus on multi-screen attribution (45%) and real-time reporting (43%).

2. Programmatic vs. Direct CTV Buying

• RTB/Open Exchanges vs. PMPs: CTV buying is equally divided among RTB/open exchanges (36%) and PMPs/preferred deals (34%).
• Ad Network Usage: 30% of CTV buying is through ad networks, reflecting diverse strategies in the programmatic ad space.

3. Trends in Video Content and Ad Spend

• Short-Form and Vertical Formats Lead: The majority of buyers are investing in short-form (69%) and vertical-format (68%) content.
• Broader Content Investment: Growth in investments across all video content types, including immersive and creator content.

4. Challenges in Measurement and Solutions

• Focus on Business Outcomes: Emphasis on KPIs like sales and site visits for all video channels.
• Measurement Challenges: Issues with viewability, standardized metrics, and access to data for niche audiences.
• Solutions for Improved Measurement: Need for better measurement solutions and the evolution of alternative measurement currencies.

5. Future of Digital Video Advertising

• Demand for Innovation: David Cohen, CEO of IAB, calls for advancements in measurement, viewability, and data transparency.
• Commitment to Growth: The need for continued innovation in the digital video ecosystem to meet the demands of a growing market.

The 2024 IAB Digital Video Ad Spend & Strategy Report highlights significant trends and challenges in the digital video advertising industry. As programmatic CTV buying becomes the norm and performance-based metrics gain prominence, the report underscores the need for improved measurement solutions and innovative strategies. The findings from this report will guide industry leaders in navigating the evolving landscape of digital video advertising.