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The IAB has conscionable published the 2nd portion of its “2024 IAB Digital Video Ad Spend & Strategy Report,” and the cardinal criteria for integer video investments person fundamentally changed.
Since August 2007, erstwhile YouTube started offering video advertising, brands, and their agencies person ever prioritized scope and frequency.
However, concern outcomes person present go the superior occurrence metrics. Despite this oversea change, measurement inactive faces important challenges, according to Cintia Gabilan, IAB’s VP of the Media Center.
In a property release, Cabilan said:
“The manufacture has bought, transacted, and measured against scope since the opening of time.”
She added:
“But present concern outcomes are the astir important metrics to measure success, with scope and frequence coming successful second. However, measurement is not yet wherever it needs to be. Two-thirds of buyers mention issues crossed 9 cardinal areas of measurement.”
The 2024 IAB Digital Video Ad Spend & Strategy Report Provides Essential Insights
Released astatine the IAB Video Leadership Summit (VLS), the 2nd portion of the study provides indispensable insights:
Three-Quarters Of CTV Buying Is Programmatic
- CTV activation is astir evenly divided among real-time bidding (RTB)/open exchanges (36%), backstage marketplaces/preferred deals/programmatic guaranteed (34%), and advertisement networks (30%).
Increased Spend Across All Video Channels And Content Types
- The first portion of the report predicted accrued spending successful 2024 connected large integer video channels. Part 2 reveals investments crossed each video types, including short-form (69%) and vertical-format (68%), which predominate purchaser preferences.
Performance Advertising Needs Enhanced Measurement
- Business outcomes specified arsenic sales, tract visits, and leads are present apical KPIs for buyers crossed each channels – societal video (64%), online video (58%), and connected TV/CTV (54%).
- Two-thirds of buyers look measurement issues, peculiarly smaller advertisers targeting niche audiences, who study problems with viewability, standardized targets, currency, and sell-side data. Streaming networks indispensable amended these areas to summation purchaser confidence.
Widespread Use of Alternative Measurement Methods
- The manufacture is moving beyond accepted panel-based ratings, with 89% of advertisers engaging with alternate measurement vendors. Buyers prioritize multi-screen attribution (45%) and real-time reporting (43%), and 28% already usage alternate currencies.
In the property release, David Cohen, IAB’s CEO, said:
“As the saying goes, ‘with large powerfulness comes large responsibility’.”
He added:
“With the continued awesome maturation of integer video comes demands for amended measurement, viewability, standardized data, and placement transparency. The video ecosystem indispensable afloat perpetrate to innovation, particularly successful measurement.”
The IAB collaborated with Guideline, utilizing advertisement billing data, marketplace estimates, and an IAB-commissioned Advertiser Perceptions survey of TV/digital video advertisement walk decision-makers to compile the report.
The implicit “2024 IAB Digital Video Ad Spend & Strategy Report” is disposable here [gated].
Measurement Challenges: Co-Viewing
Many brands and their agencies volition beryllium tempted to commencement speechmaking Section 1 of the study titled “Ad Spend Projections, contented formats, and programmatic.”
Some media buyers volition leap consecutive to Section 2 titled “Buyer Selection Criteria: Channels, Platforms and Ad Partners.”
But I began by analyzing and evaluating Section 3: “Measurement Challenges and Mitigation Tactics.”
Why commencement here?
Well, arsenic I mentioned successful a previous article, I’m a large instrumentality of Yogi Berra, who erstwhile said, “If you don’t cognize wherever you are going, you mightiness upwind up someplace else.” Besides, I wanted to cognize much astir the 9 cardinal areas of measurement that were creating issues.
And the apical contented was a large surprise: co-viewing.
Here’s Google’s explanation of co-viewing:
“When aggregate radical ticker YouTube connected a connected TV (CTV) instrumentality unneurotic and presumption an advertisement astatine the aforesaid time, it could pb to much impressions and scope for your campaign.” Google adds, “Panels amusement that aggregate radical are watching YouTube unneurotic connected TV screens, a user behaviour diagnostic of linear tv viewership arsenic well.”
According to the report, co-viewing ranks up of placement transparency, marque safety/suitability, viewability, ads served connected Made for Advertising (MFA) websites, ads served connected TVs turned off, getting sell-side data, utilizing aggregate currencies, and modular sell-side targets.
The study quotes an unnamed manager astatine an agency, who said, “Measuring co-viewing behaviors is peculiarly important due to the fact that it straight affects our knowing of assemblage engagement and assemblage reach.
Without accurately capturing who is watching contented together, we hazard misinterpreting viewership information and making mendacious assumptions astir the preferences and behaviour of our people audience.”
Measurement Issues Differ Greatly Depending On The Channel
Part 2 of the “2024 IAB Digital Video Ad Spend & Strategy Report” besides finds that measurement issues disagree greatly depending connected the channel, particularly with online video and CTV.
Online video encounters difficulties owed to varying measurement frameworks astatine the steadfast level, which complicates buyers’ knowing of placement, viewability, and guarantees.
Similarly, Connected TV (CTV) experiences challenges owed to the lack of shared show-level information and inconsistent measurement methods.
In addition, tiny spenders study higher levels of interest regarding issues similar viewability and marque information compared to larger competitors. They thin to absorption connected targeting circumstantial audiences alternatively than achieving wide reach, necessitating precise measurement.
However, they often deficiency the resources to prosecute measurement partners and brushwood constricted transparency from societal platforms. Streaming networks aiming to pull much tiny spenders volition request to physique spot successful these areas.
The study quotes an bureau director, saying:
“Brand information is astir concerning due to the fact that it is the brand’s representation which is astatine stake. We privation to power wherever our ads should beryllium shown, whom to beryllium shown to, what audiences to target, etc.”
Brands study higher levels of interest astir issues similar viewability and standardized targets compared to agencies.
Key factors see small- to mid-tier agencies lacking resources to prosecute measurement partners, having little measurement expertise, and being little progressive successful show evaluation, which is usually managed by the agencies.
The study quotes the manager of a B2B brand, saying:
“A marque that tin show that its disposable content is positive, nonrecreational and charismatic is much apt to basal retired successful a competitory marketplace.”
With the emergence of privacy-by-design, buyers progressively usage measurement tools that beryllium little connected information signals. AI, data-driven optimization, multi-touch attribution (MTA), and selling premix modeling (MMM) assistance buyers measure show utilizing modeled information arsenic the disposable information excavation shrinks.
In summation to supporting these tools, AI is besides employed for measuring marque safety, suitability, and fraud (41%), arsenic good arsenic for predicting outcomes (32%).
The Use And Interest In Alternative Currencies
The study besides recovered the usage and involvement successful alternate currencies person go widespread. Currently, 89% of advertisers are engaged with alternate currencies successful immoderate capacity, whether done transactions, testing, oregon discussions with vendors.
Almost 30% of TV and video buyers are already utilizing alternate currencies for transactions. On average, buyers are presently transacting oregon investigating 3 antithetic alternate currencies and expect this fig to summation to 4 by 2025.
The superior reasons for utilizing alternate currencies are multi-screen attribution and real-time reporting. Small spenders are much inclined to usage alternate currencies for originative effectiveness (57%), conversion analytics (51%), and second-by-second reporting (51%).
The study quotes a section caput of a B2B brand, who says:
“Real-time assemblage measurement metrics that seizure cross-platform viewership, engagement, and demographic information are needed to accommodate to evolving viewing habits and technologies.”
While alternate currencies connection imaginable advantages, wide usage is hindered by assorted challenges. These see the costs associated with implementing them, the complexities progressive successful their systems, and the request for practice crossed antithetic industries.
The study quotes a section caput astatine an agency, who says:
“Currency reconciliation tin beryllium challenging since antithetic currencies whitethorn usage antithetic valuation techniques and speech rates.”
Report Recommendations
Brands and agencies should work the conception connected “Measurement Challenges and Mitigation Tactics” earlier they tackle the past conception of the report: “Recommendations.”
Why? Well, arsenic Yogi whitethorn person said, “If you don’t cognize wherever you are going, you mightiness upwind up someplace else.” However, helium mightiness person said, “If you don’t cognize wherever you are going, you mightiness not get there.”
Either way, you’ll request to flooded 9 measurement challenges if the apical KPIs of your video advertisement campaign are present concern outcomes similar store/site visits, leads, and sales.
All quotes and statistic cited supra are taken from the 2024 IAB Digital Video Ad Spend & Strategy Report.
More resources:
- Why And How Local Businesses Should Use Video In Their Digital Marketing
- Video Marketing: An In-Depth Guide For Every Business Owner Today
- PPC Trends 2024
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