CTV forecasted to boost digital video advertising
Digital video advertising spend increased 49% in 2021 and is expected to increase an additional 26% to USD 49.2 billion in 2022 according to IAB’s report on video ad spend.
“While CTV leads the substantial growth of digital video ad spend, the amount of dollars currently allocated to CTV is not proportionate to the amount of viewer time spent with the channel. The time is now for brands and buyers to follow consumer attention”, says vice president Eric John.
Connected TV (CTV) ad spend increased 57% in 2021 to USD 15.2 billion and is expected to grow an additional 39% in 2022 to USD 21.2 billion. Between 2020 and 2022, CTV ad spend is projected to more than double (+118%).
76% of video buyers say CTV as a ‘must buy’ in their media planning budgets, according to the report.
“Digital video is a driving force for buyers and will continue to be in 2022,” says Eric John.
Although CTV will account for 36% of total time spent with linear TV and CTV combined in 2022, the amount of dollars currently allocated to CTV is not aligned to this viewership. Only 18% of total video ad dollars are being spent on CTV vs. total video spend, which includes CTV, linear TV, social, and short-form video, the report says.
”When comparing CTV to traditional, linear TV, buyers found data usage, transparency, and no reliance on third-party cookies as distinct advantages”
“To address the challenges of CTV, buyers are preparing for a converged linear TV/CTV market that would ease management of cross-platform and cross-channel video buys.”
88% of buyers anticipate a converged linear TV/CTV marketplace in the coming years. Two in three (66%) linear TV/digital video buyers now have a single planning team for the two channels, and another quarter (25%) expect to have one planning team in the future.
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