Digital Video Surges, Social Video Set To Overtake CTV: IAB’s Koch
Are you reaching your customers where they are spending the most time?
Nearly 80% of all US consumers are now watching digital video monthly, with the average person tuning in for over four hours a day. That’s an extra 30 minutes per day compared with just two years ago.
“As more content comes online and more services come online, that’s where the consumers are going,” says Jack Koch, SVP of Research & Insights at IAB, in this video interview with Beet.TV.
Advertisers Follow the EyeballsFirstly, ad spend is simply following the eyeballs. “More consumers are watching video. That’s where you have to be to reach them,” Koch says.
Digital video remains one of the most measurable, addressable, effective and brand-safe platforms for advertisers today. The increasing availability of self-serve ad platforms is also making it easier than ever for brands to buy video inventory.
Koch believes there are three main factors driving the 16% projected growth in digital video ad spend for 2024.
CTV Offers the Best of Both WorldsConnected TV (CTV) is particularly appealing for advertisers as linear TV audiences make the switch to streaming.
“What advertisers really appreciate about CTV is that it offers, just like they’re used to with traditional TV, that large scale, really engaging long-form content with high production value,” Koch explains. “So it’s a very easy switch from their budgets and strategies.”
But CTV also provides advanced targeting, measurement and insights that allow for real-time performance tracking and optimization. “CTV offers all of that at a scale that really no other channel can provide,” he adds.
Social Video and Creator Content Take Center StageAt the heart of the digital video boom is social video, particularly creator content.
IAB projects digital video ad spend – including social video, CTV and online video – will rise to $63 billion in 2024, representing a 16% increase from last year with social set to overtake CTVhttps://t.co/ToQ1NNor7B
— IAB Europe (@IABEurope) April 30, 2024
39% of consumers report watching more creator content this year than last year, and advertisers are following suit.
Nearly half consistently allocate budgets to social video and creator content, with 44% planning to increase that budget this year. Koch highlights three reasons why:
- Social video and creator content is highly engaging, personal and relevant for consumers. Advertising in this environment can be equally authentic.
- Social video can compress the consumer journey, with discovery, consideration, purchase and advocacy all happening in a single session.
- Improved tools for measurement, brand safety and ease of buying are taking the medium mainstream.
To make the most of social video and creator content, Koch advises brands to put their trust in creators and platforms.
“By trusting the creators and their partners, the advertising is going to resonate. It’s going to be authentic and it’s going to be relatable,” he says.
Successful brands are also using insights to optimize their ad spend across the consumer journey and understand how social video fits alongside other channels.
A Bright Future for Digital Video AdvertisingLooking ahead, Koch sees plenty of opportunities for advertisers in digital video. The sheer scale and continued growth of video consumption makes it a must-buy for reaching consumers.
At the same time, digital video offers the ability to go deep with niche targeting and personalized messaging. Even as privacy regulations evolve, digital video will remain one of the most measurable and addressable platforms.
“The opportunities are just going to continue with new inventory coming online, new ad tiers being developed, and platforms developing new ad products that advertisers can take advantage of,” Koch predicts. “These are all great opportunities that are going to excite advertisers and keep ad spend flowing to digital video.”
You’re watching “NewFronts 2024”. For more videos from this series, please visit this page.