Spending on digital video advertising is expected to jump 16% to $62.9 billion in 2024, according to a new forecast from the Interactive Advertising Bureau.
The increase follows a 15% jump in 2023 and a 21% hike in 2022 and will easily outpace the growth in total advertising spending, IAB said.
In terms of spending on TV and video advertising, the IAB expects most spending to be on digital for the first time, with a 52% share, compared to a 48% share for linear TV. In 2023, linear TV had a 52% share of ad dollars, with digital garnering 48%.
Spending on connected-TV advertising is seen growing 12% in 2024, while online video climbs 18% and social video jumps 20%.
The IAB worked with Advertiser Perceptions and Guideline on its 2024 Digital Video Ad Spend and Strategy Report.
In a survey of advertisers and media buyers, more considered social media and CTV a “must-buy” than national broadcast and cable TV or local broadcast and cable TV.
The buyers said the ad dollars they were spending on CTV were being reallocated from linear TV and other nonvideo digital ads.
Three-quarters of CTV buying is now being done using programmatic technology.
Buying CTV programmatically made it easier to optimize campaigns, produced better return on ad spending and made it easier to achieve scale, respondents said.
Buyers also said they now evaluate campaigns by looking at outcomes, such as sales and store visits.
The survey found both widespread interest in and adoption of alternative currencies, with 89% of advertisers saying they’ve either transacted, tested or discussed the use of alternative currencies and 28% saying they’ve transacted on nondemographic metrics.
Alternative currencies still face some challenges. Buyers said they are too expensive and lack standardization and historical benchmarks. They also faced difficulties with planning for multiple currencies.
“As the saying goes, ‘With great power comes great responsibility,’ ” IAB CEO David Cohen said. “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.”
