Business Outcomes Are Now the Top Buyer KPI, According to Part Two of the IAB Digital Video Ad Spend and Strategy Report

Nine in Ten Buyers Embrace Alternative Measurement Coins; Three-quarters of CTV buying is now programmatic

New York – July 16, 2024 – Today, IAB published the second half of its “2024 IAB Digital Video Ad Spend & Strategy Report”, which reveals insights into the purchasing selection criteria for investing in digital video channels, platforms and media properties, and also problems 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 results are the most important metrics to measure success, with reach and frequency coming in second. However, measurement is still not where it should be. Two-thirds of buyers cite problems in nine key areas of measurement”.

The report, available herewas released to the IAB Video Leadership Summit (VLS)the annual agenda-setting event where senior leaders in the converging space of TV and digital video gather to discuss the industry landscape.

Key insights from the second part of the report include:

Three-quarters of CTV buying is now programmatic
In this, activation is almost equal between real-time bidding (RTB) / open exchanges (36%), private marketplaces (PMP) / preferred bids / guaranteed programmatic (34%), and ad networks (30 %).

Shoppers are spending more across all video channels and content types
The first part of the report, published earlier this year, revealed that the big three digital video channels will see increased spending in 2024. The second part reveals that buyers are investing in all types of video content, from short form to long form to creative and immersive. Short format (69%) and vertical format (68%) account for the largest share of buyers.

Performance advertising needs better measurement
Business results such as 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 out of three buyers cite measurement issues. In particular, small advertisers who target niche audiences rather than broad reach are significantly more likely to report problems with visibility, standardized targets, value, and obtaining sales data. Streaming networks hoping to tap into the “long tail” further need to bolster buyer confidence.

Alternative measurement currencies are now widely used
The report found that the industry continues to evolve beyond strictly panel-based gross rating point (GRP) ratings. 89% of advertisers transact, test or discuss with alternative currency measurement vendors. Buyers value multi-screen attribution (45%) and real-time reporting (43%), and 28% of buyers are already transacting in alternative currencies.

“As they say, ‘with great power comes great responsibility,'” said David Cohen, CEO, IAB. “With the continued impressive growth of digital video comes demands for better measurement, visibility, standardized data and transparency of placement 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/video ad spending decision makers digital to generate these results.

the full”2024 IAB Digital Video Ad Spend & Strategy Report” is available here.

About IAB
U Interactive Advertising Office enabling the media and marketing industry to thrive in the digital economy. Its membership includes more than 700 media companies, brands, agencies and technology companies responsible for selling, delivering and optimizing digital advertising marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies and the wider business community about the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops standards and technical solutions. IAB is committed to professional development and raising the knowledge, skills, competence and diversity of the workforce across the industry. Through the work of its public policy office in Washington, DC, the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policy makers. Founded in 1996, IAB is headquartered in New York City.

Contact IAB Media
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
[email protected]/[email protected]