NEW YORK, June 23, 2020 /PRNewswire/ -- 2020 has been one of the most challenging years for the advertising sector since the Great Recession of 2008. However, among all the paused and cancelled campaigns, digital video remains a bright spot, according to "IAB U.S. 2020 Digital Video Advertising Spend Report: Putting COVID in Context" released at IAB NewFronts.
Connected TV (CTV) is largely responsible for the sector's resilience and was least impacted by COVID-19. According to the report, CTV will remain relatively stable even in the face of the pandemic. Average CTV spend for the year is expected to reach $16MM per advertiser. More than half of buyers are shifting dollars from Broadcast (53%) and Cable TV (52%) advertising towards CTV. Retail, media/entertainment, and telecom are the largest CTV buyers, spending, per advertiser, $32.2 million, $31.9 million, and $20.6 million respectively. Video advertising on desktop is expected to be the hardest hit in 2020.
"Connected TV has proved to be resilient during the global pandemic, taking share from traditional TV budgets," said David Cohen, President, IAB. "Buyers are not only following consumer attention, they are flocking to CTV because it is the perfect marriage of high-quality content, superior targeting, in-market optimization, and robust measurement. We are also seeing a strong desire from buyers to look at the video marketplace holistically, and the continued convergence of omni-channel video planning and buying solutions."
- Brand Safety was cited as the most important criterion for buyers when selecting digital video brands/publishers (86%), followed by premium content, (82%) and clear ROI measurement (80%)
- Programmatic in-housing continues to see significant growth, growing 64% YoY
- For social media video, story formats* are growing exponentially, expected to increase 62% YoY
- Shoppable ads and augmented reality advertising are also poised for growth up 21% and 33% respectively YoY
"Video continues to be a primary growth engine in the digital advertising industry," concluded Cohen. "However, to remain on an upward trajectory, publishers and social media companies must continue to innovate with formats and measurement solutions while staying ahead of emerging technologies".
For the report, IAB U.S. 2020 Digital Video Advertising Spend Report: Putting COVID in Context, click here.
* Social Video Stories are brand-created, longer-form videos that disappear after 24 hours.
The research was conducted by Advertiser Perceptions, which surveyed 350 marketer and agency executives online from February 27 – March 12, 2020 and May 1 – May 6, 2020. To qualify, these executives needed to be involved in digital video advertising decision-making at a company responsible for $1M+ total ad spend in 2019. More than half of the participants (52%) were senior level (VP+ job title).
About Advertiser Perceptions
Advertiser Perceptions is the global leader in research-based business intelligence for the advertising, marketing, and ad technology industries. Our expert staff delivers an unbiased, research-based view of the advertising market with analysis and solutions tailored to each client's specific KPIs and business objectives. These insights provide the confidence to make the very best organizational, sales, and / or marketing decisions, driving greater revenue and increased client satisfaction.
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership is comprised of more than 650 leading media companies, brands, 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.
SOURCE Interactive Advertising Bureau (IAB)