Part two of IAB’s Digital Video Ad Spend & Strategy Report revealed that 75% of the advertising industry runs on programmatic CTV buying. IAB’s latest report stated programmatic CTV buying is the chief activation tactic in the digital media landscape, even as marketers cast doubts on audience measurement. Media activation rates are distributed almost evenly across RTB /open exchanges (36%), private marketplaces (PMP) / preferred deals / programmatic guaranteed (34%), and ad networks (30%). Part 1 of the report (published in APRIL 2024) covered the general growth trends in the digital video advertising landscape; part 2 (published in July) dives deeper into programmatic CTV buying behavior and audience measurement KPIs.
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Here’s a quick overview of the key findings from the 2024 IAB Digital Video Ad Spend & Strategy Report.
Audience measurement is not yet where it needs to be.
Programmatic CTV is expected to grow to $22.7 billion in 2024, 32% faster than total media overall. CTV advertising budgets are reallocated as “must-buys” to scale TOFU branding and BOFU performance. However, challenges exist in translating efforts into results in programmatic CTV buying.
IAB found two-thirds of buyers have issues across nine key areas of measurement.
The nine challenges are:
- Co-viewing
- Placement transparency
- Brand safety and brand suitability
- Viewability
- Ads served on MFAs
- Ads served on TV’s turned off
- Getting sell-side data
- Using multiple currencies
- Standard sell-side targets
As new privacy regulations set in, with complex technological challenges shaping the data collection and measurement processes, buyers have difficulty targeting known and unknown audiences. Audience measurement trends will continue to revolve around user privacy preferences and how AdTech companies develop new solutions to keep buyers interested.
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Popular ad formats
Buyers are investing in different video formats to enhance engagement. Social video formats have the strongest growth trajectory. Buyers prefer to work with short-form (69%) and vertical-format (68%) videos to boost ROI / ROAS. To tackle issues with measurement metrics, buyers prefer to use AI and data-driven attribution models. Multi-touch attribution, cross-device measurement and marketing mix models (MMM) are other popular tactics.
The rise of alternative measurement currencies
TV measurement and TV currency are used interchangeably. However, they are different, and knowing the differences impact programmatic CTV buying behaviors. In 2024, buyers and advertisers are actively testing and transacting with alternative currency vendors, going beyond the traditional GRP ratings. In the coming weeks, we will see greater impact of multi-screen attribution and real-time reporting as alternative currencies.
IAB’s CEO David Cohen said that the time has come for improvements in digital video measurements and placement transparency, achievable through commitment “to innovation, especially in measurement.”
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