Premium Content Is Being Redefined; Buyers Expect Multiple Currencies
NEW YORK, May 3, 2023 /PRNewswire/ — Digital video advertising spend increased 21% in 2022 to $47.1B and is projected to rise an additional 17% to $55.2B in 2023, according to IAB’s “2022 Video Ad Spend & 2023 Outlook: Defining the Next Generation” report.
Released today at the 2023 IAB NewFronts, in conjunction with Standard Media Index (SMI) and Advertiser Perceptions, the report found that while there has been real progress in how the TV/video advertising marketplace is transacted, measured, and defined, a number of key issues still lack consensus.
Premium Content Is Being Redefined
Nearly two-thirds (64%) of TV/video buyers agree that creator-driven video can be considered premium. The largest-spending buyers are even more likely to agree (69%). What’s more, two-in-three buyers (66%) use the same measurement approaches for creator economy video as they do for “Hollywood“-produced video.
“Beauty has always been in the eye of the beholder,” said Eric John, Vice President, Media Center, IAB. “That truism is playing out now in the world of video advertising as we see marketers and brands focusing and optimizing their spend not only in the traditional world of premium content, but also in the diverse, multiplatform world of creator content.”
Buyers Want a Multi-Currency Video Marketplace by 2025
An overwhelming majority (81%) of TV/video buyers say they want two or more unified currencies for impression measurement, and among those, 92% estimate that it will happen in the next two years. Yet the lack of buyer consensus on how to define currency threatens progress. Slightly more than half (52%) want viewable impressions defined by cumulative view-time, while 48% want continuous view-time. The lack of consensus extends to the number of seconds, with 32% wanting three minimum seconds for viewability, 24% wanting five seconds, and 19% wanting four seconds.
“As urgently as buyers want a multi-currency future, there’s no question that changing a market as large as video takes time; however, the clock is ticking,” said David Cohen, CEO, IAB. “To make significant progress, buyers need to come together and align on what they need, and sellers across the diverse video ecosystem need to be part of the conversation. We are optimistic about the conversations currently taking place and will continue to advocate for universal standards, transparency, interoperability, and collaboration across the industry.”
CTV and Social Video Are Must-Buys
With TV/video buyers prioritizing media channels where audiences are addressable, connected TV (CTV) continues to be one of the fastest growing channels in terms of digital video ad spend — up 22% in 2022, and 37% faster than short-form video from web and app-based publishers. Buyers say CTV is a must-buy (65%), as is social video (64%).
Widespread Efforts to Gauge Attention
TV/video buyers are increasingly focusing on attention metrics, with more than nine-in-ten (93%) using at least one method to gauge consumer attention. Half (51%) of buyers are applying biometric attention metrics to their campaigns. The biometric attention metric most utilized is eye-tracking — being used by one-third (34%) of buyers — but other metrics, including thermal scanning, pulse, heart rate, and beyond, are being leveraged.
“Buyers want to know if the audience is paying attention, and they’re making buying decisions accordingly,” added John. “Buyers want engaged audiences watching video content of all stripes, including premium and creator-driven video. They want currencies they can trust. That’s where the industry is going — the question now is how fast we will get there.”
IAB’s “2022 Video Ad Spend & 2023 Outlook: Defining the Next Generation” report can be downloaded here.
IAB commissioned Advertiser Perceptions and SMI Insights to quantify the size and growth rate of the U.S. digital video advertising spend market and provide a lens into market trends, offering guidance for buyers and sellers on how they can position and differentiate their video initiatives based on where the challenges and opportunities reside. Advertiser Perceptions executed an anonymous online survey among ad agencies and brand marketers who are involved in recommending, specifying, or approving advertising spending in digital video, and spent at least $1M on advertising in 2022. SMI Insights’ digital video ad spend market size and growth rate estimates are based on SMI’s pool of ad billing data, including “forward bookings,” the IAB-commissioned Advertiser Perceptions quantitative survey, interviews with industry leaders, and other market estimates. The SMI Pool’s coverage of the U.S. advertising market is based on deterministic, census-level total media billings for all spending by the largest ad agencies, including all six U.S. major holding groups and most of the largest independents.
About Standard Media Index (SMI)
Standard Media Index (SMI), a Dreamscape company, reports on census-level, complete billing records for placement-level detail of all media transactions in all media types as supplied by the world’s largest media buying groups, as well as leading independents, and organizes that data to create a clear, granular, and easy-to-use database for our clients and agency partners.
Depending on the market, SMI captures between 70% and 95% of all agency spend. By aggregating it, SMI offers detailed ad intelligence across all media types, including television, digital, out-of-home, print, and radio. Depending on the market, data can be broken down by unit cost, media owner, ad type, buy type, advertiser product category, and other dimensions.
Clients use SMI data to determine media mix models, create competitive benchmarks, and gain visibility into pricing level data. The data also allow them to understand marketplace trends on a product category level, evaluate ROI of tent poles and sporting events, and break out ad formats by media type to highlight the effectiveness of different kinds of placements.
SMI’s data supports insights covering 34 countries around the world.
About Advertiser Perceptions
Advertiser Perceptions is the leader in providing research-based strategic market intelligence to the complex and dynamic media, advertising, and ad tech industries. Our curated, proprietary Ad PROS Network and deep relationships with the largest advertisers provide clients with an unbiased view of the market, their brand, and the competition. Our experts provide timely and actionable guidance enabling clients to improve their products and services, strengthen their brands, and drive more revenue. The largest, most innovative global media and ad technology businesses rely on Advertiser Perceptions.
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.
SOURCE Interactive Advertising Bureau (IAB)
Originally published at https://www.prnewswire.com/news-releases/2022-us-digital-video-ad-spend-grew-twice-as-fast-as-digital-media-overall-projected-to-hit-55-2b-in-2023–according-to-iabs-2022-video-ad-spend–2023-outlook-report-301813645.html
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