IAB Reports Buyers Want Converged TV Planning and Buying

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

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