Connected TV drives US digital video ad growth | Media Analysis | Business | News | Rapid TV News
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More evidence has emerged that the current engine of growth in the digital video advertising growth, connected TV, is powering on and, says IAB’s Video Ad Spend 2020 and Outlook for 2021, is likely to represent more than half (56%) of 2021’s total video spend.
IAB Average Video Ad Spending 020 2019 5 May 2021
The study found connected TV (CTV) continues to outpace other formats and shows no signs of slowing down. The platform saw its highest gains to date in ad spend in 2020 at 22% growth year-on-year.

Nearly three quarters (73%) of CTV buyers reported shifting budget from broadcast and cable to CTV in 2021. Advertisers were found to have spent $20 million on average on CTV in 2020, and more than a third (35%) of buyers expect to increase CTV video ad spending in 2021.

Looking at the key benefits of CTV, the report highlighted buyers citing premium, high quality content, as well as targeting, and brand safety. Three-fifths of advertisers rated CTV highly on providing “a trusted, brand safe environment,” and nearly half (46%) cited targeting as a key benefit of CTV. In terms of expected category-specific spend on CTV in 2021, buyers were optimistic for health and wellness (up 144% year-on-year), finance (+97%), travel (+92%), telecom (+71%), and media and entertainment (+48%). when it comes to mobile, buyers expect to increase spend in health and wellness (+181%), and in fashion / apparel (+81%) as well.

Escalation of the audience-based buying trend and the impending loss of third-party identifiers was revealed as making first-party data a critical differentiator. More than three quarters of advertisers indicated that “robust first-party data” is important when selecting video partners.

“This is a bellwether moment in media that reflects the continued acceleration and shift to digital,” said Eric John, VP of IAB Media Centre commenting on IAB’s Video Ad Spend 2020 and Outlook for 2021.

“While we are seeing growth across all digital video, the movement to more audience-based buying approaches has resulted in increased buyer demand for CTV. Viewers have come to expect optimised video experiences. The days of dog-owner households seeing cat food ads are ending, even on the big screen. Flexibility, addressability, and the opportunity to reach specific audiences in real time has put streaming at the big kids table, in some cases at the head of the negotiation table, right alongside traditional linear.”