The IAB releases its “2024 Digital Video Ad Spend & Strategy Report” ahead of this year’s NewFronts, which kicks off on Monday, April 29.
Covering Connected TV (CTV), social video, and online video (OLV), the report says overall spending on digital video advertising in the U.S. is projected to grow 16% in 2024 – nearly 80% faster than ad spending on total media.
In the U.S., digital video ad revenues are expected to reach $63 billion in 2024, according to the IAB.
Image from IAB, April 2024That’s virtually guaranteed to give brand marketers and media buyers an extra excuse to get out of their offices and take a first look at the latest cutting-edge digital video content and marketplace innovation that will be unveiled at IAB NewFronts.
The entire event spans four days and three dozen events at different locations in New York City.
I expect in part why the IAB releases its report on the Thursday before the 2024 IAB NewFronts next week. It’s a strategy I’ve used to get more interest in upcoming events.
However, I also suspect that many early adopters of digital video advertising have already registered for or requested a pass to some of the networking events, meals, content previews, and sponsor activations.
So, anyone trying to squeeze into “the room where it happens” at the last minute may find it harder to score an in-person attendance invitation.
Digital Video Ad Spend Has 52% US Market Share
In the last four years, the share of ad spend has shifted by nearly 20 percentage points from linear TV to digital video, which is now 52% of the total market share in the U.S.
So, if you’re only just learning about this video advertising trend now, how can you catch up with it?
You can start by reading the IAB’s 2024 Digital Video Ad Spend & Strategy Report.
To create the report, the IAB partnered with Guideline, which leveraged ad billing data as well as data from an IAB-commissioned Advertiser Perceptions quantitative survey of TV/digital video spend decision-makers and other market estimates.
Part 2 of the report, which will be released on July 15 during the IAB Media Center’s Video Leadership Summit, will dive deeper to provide insights into strategies driving activation and measurement.
Social Video And CTV Projected To See Double-Digit Ad Spend Growth
By reading Part 1 of the report, you’ll learn that social video is on track toward its second year of 20% year-over-year (YoY) growth and is projected to rise to $23.4 billion.
The report adds that CTV exceeded $20 billion for the first time in 2023 and is expected to grow by 12% to $22.7 billion in 2024 – 32% faster than total media overall.
While dollars flowing into CTV primarily come from reallocations – particularly from linear TV and other traditional media – 31% of revenues come from the overall expansion of advertising budgets.
Chris Bruderle, the VP of Industry Insights & Content Strategy at IAB, said in a press release:
“Among the largest ad spenders, CTV (69%) and social video (70%) are considered ‘must buys’ because of their ability to deliver both scale for branding at the top of the funnel and performance outcomes at the bottom of the funnel.”
Knowing these numbers will help you catch up, but if you want to get ahead, then you should also analyze the latest video advertising trends.
You can start by reading YouTube Strategic Direction Revealed Over Three Key Events in 2023.
Even though this article was published in August 2023, it indicates that social video and CTV aren’t the only trends your company or clients should focus on in 2024.
You’ll get ahead of the curve if you set aside some budget to test YouTube Shopping, which lets eligible content creators promote products from your brand or their own stores across YouTube.
CPG And Retail Will Be The Fastest Growing Categories Of Digital Video In 2024
For the first time, this year’s report includes category-level ad spending projections.
The consumer packaged goods (CPG) and retail categories are both expected to post double-digital ad spend growth YoY – at 20% and 30%, respectively – while generating the largest total ad spend.
The report says CPG brands are leveraging CTV’s increased scale, ability to connect with consumers directly, and streaming companies’ partnerships with retail media networks.
Auto, financial, restaurants, B2B, travel, and wellness are also up more than 20%, though from smaller bases. In fact, the IAB projects most categories will see double-digit growth in 2024 vs. 2023.
David Cohen, the CEO of IAB, said in a press release:
“Advertisers go where consumers are, and today that means digital video.”
He added:
“The challenge ahead is this: in a crowded landscape, who can deliver the best viewing experience, with the best content choices and the most innovative advertising options? That competition is ultimately good for consumers and good for the industry.”
Again, knowing this will help those behind catch up.
You should also read YouTube Unveils Suite Of AI-Powered Tools For Video Creators.
The article was published in September 2023, but that’s when YouTube first introduced AI Insights to spark video ideas, Dream Screen for AI-generated backgrounds, and YouTube Create, a new app for creators.
YouTube creators have now had seven months to learn how to master these tools. Check out YouTube’s ‘Affiliate Hub’ Offers A New Way For Channels To Make Money.
Even though it was published earlier this month, I’ll bet that YouTube creators are already using this new shopping tool to boost their ecommerce monetization.
This relatively new development should help your company or clients to leapfrog their competitors. That should help you add some strategic insights after your colleagues discuss what they saw and heard at the 2024 IAB NewFronts.
To Keep Ahead, Cover All The Events At IAB
Let me share one last bit of tactical advice. I can’t be in “the room where it happens” next week. I’ll be home in Greater Boston. But I’ve arranged to be in “the Zoom where it happens” and you should be, too.
To get virtual access to the presentations, all you need to do is log in to your IAB account prior to viewing.
Advertising agency executives, media buyers, and brand marketers are all welcome to register for the 2024 IAB NewFronts for free. Just click Register for your complimentary pass.
However, there will be about three dozen in-person and virtual events. Nobody can attend all of them, and you will need a team to cover all the events.
Assign different people to attend or watch different events and get together at the end of the week to compare notes.
This is an event not to be missed. It’s where you can discover all the video advertising opportunities and threats facing your company or clients in the foreseeable future.
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