Digital video now fastest growing advertising segment, up 41% in Q4 2020
Investment in digital video advertising spiked in the final quarter of 2020, growing 41% to become the fastest-growing digital advertising segment in Australia.
Digital video advertising investment reached $642.7 million, which saw the segment attract more than half of digital display advertising spend, according to a report released by peak trade association the Interactive Advertising Bureau (IAB).
The IAB also found that growth is set to continue into 2021, with 68% of agencies expecting investment in digital video advertising to increase this year.
The Attitudes to Digital Video Report outlined a range of factors for why video investment continues to outpace the rest of the ad market, with 81% of agencies using digital video to increase brand awareness.
Digital video advertising was also used by 61% of agencies to increase purchase/action intent and 47% used the medium to increase sales or conversions.
The ability of digital advertising to reach audiences at scale was identified as the number one reason why 59% of agencies continue to use or recommend digital video advertising, according to the report.
IAB’s Attitudes to Digital Video Advertising Report 2021 [click to enlarge]
Despite the growth, the IAB also found that not all agencies are utilising digital video to its full potential.
81% of agencies use digital video advertising to increase brand awareness, but only 38% use brand awareness lift metrics to evaluate their campaign success, opting instead to use delivery metrics such as reach and frequency, completion rates and CPM.
In addition, nearly 4 in 10 agencies rarely or never develop digital video advertising creative to the specific media environment.
IAB Australia CEO Gai Le Roy said: ” The growth in digital video advertising investment over the last few years has been phenomenal, fuelled by continued innovation in environments, formats as well as an explosion of CTV opportunities.
“This Report helps to identify key areas for industry focus and development to support the market in 2021 and beyond.”
IAB Australia’s Video Council co-chair, and Managing Director Australia for Magnite, James Young, added: “The findings of this study further underscore the importance of video as a central part of marketers’ omni-channel advertising strategies.
“No other advertising medium is more effective for brand building and mass awareness.
“From our vantage point in the industry, digital video growth is being fuelled by the ability buyers have to tap into premium, long-form video with effective reach for their campaigns.”
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Zanda Wilson was a reporter and podcast producer at Mumbrella, specialising in radio reporting. He left Mumbrella in September 2021.
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topics
Attitudes to Digital Video Advertising Report
digital video
Digital Video Advertising
Gai Le Roy
IAB
IAB Australia
Interactive Advertising Bureau
Magnite
