Nine in Ten Buyers Are Embracing Alternative Measurement Currencies; Three-Quarters of CTV Buying Is Now Programmatic
New York – July 16, 2024 – Today, IAB released the second half of its “2024 IAB Digital Video Ad Spend & Strategy Report,” revealing insights into the buy-side’s selection criteria for investing in digital video channels, platforms, and media properties as well as issues 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 outcomes are the most important metrics to assess success, with reach and frequency coming in second. However, measurement is not yet where it needs to be. Two-thirds of buyers cite issues across nine key areas of measurement.”
The report, available here, was released at the IAB Video Leadership Summit (VLS), the annual agenda-setting event where senior leaders across the converging TV and digital video space gather to discuss the industry landscape.
Key insights from part two of the report include:
Three-Quarters of CTV Buying Is Now Programmatic
Within that, activation is roughly equal among the real-time bidding (RTB) / open exchanges (36%), private marketplaces (PMP) / preferred deals / programmatic guaranteed (34%), and ad networks (30%).
Buyers Are Spending More Across All Video Channels and Content Types
Part one of the report, released earlier this year, revealed that the three major digital video channels will see increased spend in 2024. Part two reveals that buyers are investing across all video content types, from short-form to long-form to creator and immersive. Short-form (69%) and vertical-format (68%) account for the largest share of buyers.
Performance Advertising Needs Better Measurement
Business outcomes like 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 in three buyers cite measurement issues. In particular, small advertisers aiming for niche audiences rather than broad reach are significantly more likely to report issues with viewability, standardized targets, currency, and obtaining sell-side data. Streaming networks hoping to further tap the “long tail” will need to boost buyer confidence.
Alternative Measurement Currencies Are Now Widely Used
The report found that the industry is continuing to evolve beyond strictly panel-based, gross rating points (GRP) ratings. 89% of advertisers are transacting, testing, or having discussions with alternative currency measurement vendors. Buyers value multi-screen attribution (45%) and real-time reporting (43%), and 28% of buyers are already transacting on alternative currencies.
“As the saying goes, ‘with great power comes great responsibility’,” said David Cohen, CEO, IAB. “With the continued impressive growth of digital video comes demands for better measurement, viewability, standardized data, and placement transparency. 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/digital video ad spend decision-makers to generate these results.
The full “2024 IAB Digital Video Ad Spend & Strategy Report” is available here.
About IAB
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.
IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
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