Big news: The IAB released a report on the digital video market last week to kick off the NewFronts.
Big question #1: What are the NewFronts?
Quick answer: Digital content companies promote upcoming content to advertisers at the NewFronts. Think the digital version of the Upfronts.
Big question #2: How large is the video ad market in the U.S.?
Digital video ad spend according to the IAB:
1) 2020 – $26B
2) 2021 – $39B (↑ 49%)
3) 2022P – $49B (↑ 26%)
Big question #3: Which video ad format is growing fastest?
Quick answer: Connected TV (CTV).
YoY growth rate for connected TV ad spend:
1) 2021 – ↑ 57%
2) 2022P – ↑ 39%
Share that consider each video ad format a must-buy:
1) CTV – 76%
2) Social video – 56%
3) National linear – 50%
4) Other digital video – 32%
5) Local linear – 29%
6) Indexed linear – 19%
7) Addressable TV – 19%
Big question #4: 4. Does ad spend for CTV line up with consumption?
Quick answer: No. CTV is still underbought compared to its reach and time spent. Part of this can be explained by the fact a higher share of streaming is ad-free (≈ 60%) than linear TV (≈ 20%).
Big question #5: Where is money coming from for CTV spend?
Quick answer: 73% plan to shift funds away from linear TV.
Big question #6: Who currently buys CTV advertising?
Team most responsible for buying CTV advertising according to Mediaocean:
1) Digital – 62%
2) Linear – 23%
3) Video – 10%
4) Other – 5%
Big question #7: What does the future look like?
Quick answer: Converged teams planning/buying linear TV and CTV together.
Share that foresees a converged marketplace for linear TV and CTV:
1) Yes (2+ years) – 46%
2) Yes (<2 years) – 42%
3) No – 12%
Flashback: CTV Leads Digital Ad Growth
Big question #8: What progress are we making towards convergent TV?
Report card for TV/video convergence according to Joanna O’Connell:
1) Tech – B
2) Agencies – B-
3) Media companies – C
4) Brands – C
Big question #9: What are the most important KPIs for CTV advertising?
Top KPIs currently used for CTV:
1) Reach/frequency
2) Brand lift
3) Effective frequency
4) Brand perception
5) Video views/impressions
