- Advertisers increasingly prioritize business outcomes like sales or store visits as key performance indicators (KPIs) for digital video campaigns, based on the second a part of an Interactive Advertising Bureau (IAB) report assessing channel trends.
- A growing focus on business outcomes breaks with video’s historic use as a vehicle for reach. However, the IAB found measurement tools for performance advertising in video are lacking, with two-thirds of buyers encountering frustrations on this area.
- The adoption of different measurement currencies outside of panel-based rankings continues to take hold, with 89% of advertisers either testing or transacting with a latest guard of solutions vendors. These experiments come because the IAB expects the most important digital video channels to see increased investment this 12 months.
Marketing’s shift right into a performance-driven mindset, where ads could be more directly tied to sales and other consumer actions, is taking firmer hold within the digital video arena. Reach and frequency, long the channel’s leading KPIs, have slipped down the rung as business outcomes rise to the top. That realignment is obvious in social video, where 64% of buyers now chiefly value business outcomes, in addition to in online video (58% of buyers said the identical) and the burgeoning connected TV market (54% of buyers). The IAB assembled its findings with help from quantitative surveys from Advertiser Perceptions.
Recent dealmaking underpins how digital video platforms are all in favour of higher realizing their performance potential. The spring upfronts media-buying season saw several partnerships struck between CTV players and retail media networks like Walmart Connect. CTV can also be skewing more programmatic, as three-quarters of ads are actually bought through methods like real-time bidding, private marketplaces and ad networks.
These trends come as advertisers are dumping more dollars into digital video amid an acceleration in cord-cutting. In the primary a part of its report, released in May, the IAB forecast ad spending across online video, social video and CTV would rise 16% 12 months on 12 months in 2024 to achieve $63 billion, with social video within the lead spot. Investments are also being spread widely amongst content types, with short-form and vertical video — formats made ubiquitous because of TikTok — making up the most important share.
Digital video’s pivot to performance isn’t without its growing pains. Two-thirds of buyers experience measurement issues with the channel. Granularity appears to be particularly difficult to understand, as small advertisers targeting area of interest audiences versus broad reach were “significantly more likely” to hit snags related to viewability and accessing sell-side data, based on the IAB.
“As the saying goes, ‘with great power comes great responsibility’,” said David Cohen, CEO of the IAB, in a press release attached to the research. “With the continued impressive growth of digital video comes demands for higher measurement, viewability, standardized data, and placement transparency. The video ecosystem must fully commit to innovation, especially in measurement.”
As their benchmarks for achievement change, nearly all of ad buyers are either in talks or actively testing the waters with alternative currencies to the gross rating points model associated with legacy measurement firms like Nielsen. Around 28% of buyers are already transacting with alternative currencies, valuing offerings that may provide multiscreen attribution and real-time reporting, per the IAB.
Read the total article here
