August Update from IAB Shows Ad Spend & Opportunities For Growth In 2024 via @sejournal, @gregjarboe

10 months ago 113

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This morning, The Outlook Study: August Update has been released by the IAB arsenic an update to their archetypal November 2023 survey and provides a snapshot of projected advertisement spend, opportunities, and challenges for the remainder of 2024.

The survey outlines the shifts that person occurred passim the year, capturing existent perspectives from buy-side advertisement concern decision-makers astatine brands and agencies.

Here are immoderate of the cardinal takeaways for integer marketers:

Buyers accrued their 2024 advertisement walk projections from +9.5% projected astatine the extremity of 2023 to +11.8% today.
Nearly each channels are expected to station higher maturation rates year-over-year (YoY), with adjacent Linear TV rebounding.
Retail media’s ascent continues, with buyers revising YoY projections from +21.8% to +25.1%.
Buyers proceed to absorption connected cross-funnel KPIs portion shifting efforts towards scope optimization arsenic involvement successful caller KPIs wanes.
Measurement challenges persist for the industry, portion economical concerns subside.

In different words, it’s clip to outpouring forward, not autumn back, successful the media and selling industries.

Buyers’ Ad Spending Forecasts For 2024 Have Been Revised Upward

The summation successful projections is not what galore integer marketers were expecting, truthful what is happening successful the changing manufacture landscape?

Increased advertisement spending successful the 2nd fractional of 2024 is being driven by accrued governmental spending astir the statesmanlike predetermination and different cyclical events, specified arsenic the Summer Olympic games.

Based connected IAB’s caller email survey of 200 buy-side advertisement concern decision-makers, chiefly astatine brands and agencies, astir each channels are expected to station higher maturation rates YoY.

Yes, adjacent linear TV is present expected to turn 4.3%, but 9 different channels are expected to turn astatine adjacent faster rates:

Connected TV (CTV) by 18.4%.
Social media by 16.3%.
Paid hunt by 13.1%.
Podcasts by 12.6%.
Digital video excluding CTV by 12.5%.
Digital out-of-home (OOH) by 8.9%.
Digital audio, excluding podcasts, by 8.3%.
Digital show by 7.4%.
Gaming by 5.1%.

Why Is Retail Media Expected To Continue Growing?

Buyers – peculiarly successful the consumer-packed goods (CPG) and the quality categories – are acceptable to surge successful the U.S. this year, pushing wide retail media advertisement spending to scope one-fifth of the full 2024 advertisement spend.

Okay, these are the reasons to outpouring forward, adjacent if we’re connected the verge of fall. But determination are a mates of challenges that integer marketers inactive face.

For example, there’s been a diminution successful absorption connected caller advertisement KPIs (e.g., attraction metrics, weighted CAC, etc.), which suggests there’s been a renewed involvement successful refining and leveraging established metrics to execute cross-funnel goals.

However, goals tin alteration by channel.

As I mentioned this summertime successful “Business Outcomes Are The Top KPI Of Video Ad Buyers – IAB Report Part Two,” IAB’s latest Digital Video study recovered that wrong the integer video channel, buyers are determining occurrence via concern outcomes, i.e., sales, store/website visits, etc.

So, figuring retired how to usage Google Analytics 4 (GA4) to measurement concern outcomes alternatively of selling outputs remains “the roadworthy little traveled.”

Understanding Evolving Consumer Habits Is A Growing Concern

While economical worries person faded, the interest implicit executing cross-channel media measurement has risen.

The resilient economy, marked by a 2.3% emergence successful user spending successful Q2 2024, has eased buyers’ concerns.

But, arsenic media convergence gains traction, cross-channel measurement remains a apical priority, particularly for ample advertisers that walk implicit $50 cardinal annually.

Other concerns, similar managing scope and frequence crossed screens and channels, arsenic good arsenic media inflation, person remained flat.

Understanding evolving user habits is simply a increasing interest – and is keeping importantly much buyers up astatine nighttime than it did past year.

It does look similar it’s clip to outpouring guardant successful the media and selling industries, though this has traditionally been the play erstwhile integer marketers hole to autumn back.

All information supra has been taken from The 2024 Outlook Study: August Update – A Snapshot into Ad Spend, Opportunities, and Strategies for Growth by the IAB. The survey is simply a follow-up to the initial November 2023 release, providing existent perspectives from 200 buy-side advertisement concern determination makers astatine brands and agencies.

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