Digital video advertising is on the rise: IAB
Digital video advertising investments are being more widely embraced, with 92% of media agencies using them as a significant or regular part of their marketing activity, according to IAB Australia’s Video Advertising State of the Nation report.
Now in its fourth year, the report offers insights on video advertising investment, assessment and plans from media agencies – covering all forms including BVOD, AVOD, social video, and short form editorial. For the first time, however, the report has also explored the usage of digital video on digital out-of-home (DOOH) screens and retail media formats.
It found that there have been significant increases in the usage of nearly all digital formats, with screen strategies expanding to include DOOH video ads, and digital video retail media formats. Likewise, the frequency of using connected TV advertising has increased, with 55% of marketers saying it makes up a significant amount of their advertising activity.
Nearly two-thirds of agencies reported buying digital video on connected TV, mobile and computer, in combination with DOOH.
“In a year where cost of living pressures are impacting consumer sales, agencies have increased their usage of digital video for brand building, as well as to stimulate purchase intent, and to prime consumers for when stronger spending returns,” said Gai Le Roy, chief executive of IAB Australia.
“However, it’s clear that agencies are facing challenges such as standardisation in metrics across screens, now including different DOOH, retail media platforms and CTV environments.”
66% of agencies reported that connected TV plays a major role in extending reach of linear TV campaigns. In contrast, the top drivers for mobile and computer inventory were targeting (66%) and the ability to reach audiences at scale (62%), respectively.
The report also found that while agencies use multiple buying methods, connected TV advertising is more often bought programmatically, via guaranteed deals. Digital video advertising for computer and mobile is most commonly programmatically traded on an open exchange.
And while brand building remains the dominant objective for all digital video and TV advertising, agencies are engaging in full funnel strategies, with campaign objectives also including driving sales and conversions for clients.
The IAB Australia Video Advertising State of the Nation report fieldwork was conducted in June 2024 with 120 independent and major holding group agency decision makers completing the survey.
The survey gathered industry information on video advertising that appears on connected devices such as connected TV, computers (desktop/laptop), smartphone or tablets, and included video advertising in all varieties of long-form and short-form digital content and social platforms.
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Lauren McNamara is the associate editor at Mumbrella, covering the creative and PR beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
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