Advanced Television

Report: ‘creator video’ ad spend value same as broadcast

May 4, 2023

Digital video advertising spend increased 21 per cent in 2022 to $47.1 million (€42.6bn) and is projected to rise an additional 17 per cent to $55.2 billion in 2023, according to IAB’s 2022 Video Ad Spend & 2023 Outlook: Defining the Next Generation report.

Released at the 2023 IAB NewFronts, in conjunction with Standard Media Index (SMI) and Advertiser Perceptions, the report found that while there has been real progress in how the TV/video advertising marketplace is transacted, measured, and defined, a number of key issues still lack consensus.

Premium Content Is Being Redefined

Nearly two-thirds (64 per cent) of TV/video buyers agree that creator-driven video can be considered premium. The largest-spending buyers are even more likely to agree (69 per cent). What’s more, two-in-three buyers (66 per cent) use the same measurement approaches for creator economy video as they do for ‘Hollywood’-produced video.

“Beauty has always been in the eye of the beholder,” commented Eric John, Vice President, Media Center, IAB. “That truism is playing out now in the world of video advertising as we see marketers and brands focusing and optimising their spend not only in the traditional world of premium content, but also in the diverse, multiplatform world of creator content.”

Buyers Want a Multi-Currency Video Marketplace by 2025

An overwhelming majority (81 per cent) of TV/video buyers say they want two or more unified currencies for impression measurement, and among those, 92 per cent estimate that it will happen in the next two years. Yet the lack of buyer consensus on how to define currency threatens progress. Slightly more than half (52 per cent) want viewable impressions defined by cumulative view-time, while 48 per cent want continuous view-time. The lack of consensus extends to the number of seconds, with 32 per cent wanting three minimum seconds for viewability, 24 per cent wanting five seconds, and 19 per cent wanting four seconds.

“As urgently as buyers want a multi-currency future, there’s no question that changing a market as large as video takes time; however, the clock is ticking,” advised David Cohen, CEO, IAB. “To make significant progress, buyers need to come together and align on what they need, and sellers across the diverse video ecosystem need to be part of the conversation. We are optimistic about the conversations currently taking place and will continue to advocate for universal standards, transparency, interoperability, and collaboration across the industry.”

CTV and Social Video Are Must-Buys

With TV/video buyers prioritising media channels where audiences are addressable, connected TV (CTV) continues to be one of the fastest growing channels in terms of digital video ad spend — up 22 per cent in 2022, and 37 per cent faster than short-form video from web and app-based publishers. Buyers say CTV is a must-buy (65 per cent), as is social video (64 per cent).

Widespread Efforts to Gauge Attention

TV/video buyers are increasingly focusing on attention metrics, with more than nine-in-ten (93 per cent) using at least one method to gauge consumer attention. Half (51 per cent) of buyers are applying biometric attention metrics to their campaigns. The biometric attention metric most utilised is eye-tracking — being used by one-third (34 per cent) of buyers — but other metrics, including thermal scanning, pulse, heart rate, and beyond, are being leveraged.

“Buyers want to know if the audience is paying attention, and they’re making buying decisions accordingly,” added John. “​​Buyers want engaged audiences watching video content of all stripes, including premium and creator-driven video. They want currencies they can trust. That’s where the industry is going — the question now is how fast we will get there.”

Categories: Advertising, Articles, Broadcast, Connected TV, Markets, OTT, OTT, Research, Targetted

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