According to a new Interactive Advertising Bureau prediction, spending on digital video advertising will increase 16% to $62.9 billion by 2024.
The increase follows a 15% increase in 2023 and a 21% increase in 2022, and it is expected to easily outstrip growth in total advertising spending, according to the IAB.
For the first time, the IAB expects digital to account for the majority of TV and video advertising spending, with a 52% share compared to linear TV’s 48%. In 2023, linear TV had a 52% share of ad dollars, with digital accounting for 48%.
Spending on connected-TV advertising is expected to increase by 12% in 2024, while online video will increase by 18% and social video by 20%.
READ MORE: New Forecast Sees Political Ad Spending Reaching $10.7 Billion In 2024
The IAB collaborated with Advertiser Perceptions and Guideline on the 2024 Digital Video Ad Spend and Strategy Report.
In a study of advertisers and media buyers, more thought social media and CTV were a “must-buy” than national broadcast and cable TV or local broadcast and cable TV.
The buyers stated that the ad money they spent on CTV were being moved from linear TV and other non-video digital ads.
Programmatic technology now accounts for three-quarters of all CTV buying.
READ MORE: Video Accounted For Over A Quarter Of US Digital Ad Spending Last Year
According to respondents, buying CTV programmatically made it easier to optimize campaigns, provide a higher return on ad spending, and attain scale.
Buyers also stated they increasingly evaluate campaigns based on results, such as sales and store visits.
The poll discovered considerable interest in and acceptance of alternative currencies, with 89% of advertisers stating they’ve transacted, tested, or discussed the use of alternative currencies, and 28% indicating they’ve transacted based on nondemographic criteria.
Alternative currencies confront some hurdles. Buyers claim they are prohibitively expensive and lack standardization and historical benchmarks. They also encountered issues while planning for several currencies.
“As the saying goes, ‘With great power comes great responsibility,'” IAB CEO David Cohen stated. “With the continued impressive growth of digital video, there is a demand for improved measurement, viewability, standardized data, and placement transparency.” The video ecosystem must completely embrace innovation, particularly in measurement.”
Radiant TV, offering to elevate your entertainment game! Movies, TV series, exclusive interviews, music, and more—download now on various devices, including iPhones, Androids, smart TVs, Apple TV, Fire Stick, and more.
