Connected TV Makes Up Largest Ad Spend Amongst Digital Video Advertising
NEW YORK — May 2, 2022 —Digital video advertising spend surged 49% in 2021 and is expected to increase an additional 26% to $49.2B in 2022 according to IAB’s “2021 Video Ad Spend and 2022 Outlook” report.
Released at the 2022 IAB NewFronts, in conjunction with Standard Media Index (SMI) and Advertiser Perceptions, the report found Connected TV (CTV) ad spend increased 57% in 2021 to $15.2B and is expected to grow an additional 39% in 2022 to $21.2B. Between 2020 and 2022, CTV ad spend is projected to more than double (+118%). In fact, three out of four video buyers (76%) label CTV as a ‘must buy’ in their media planning budgets.
“Digital video is a driving force for buyers and will continue to be in 2022,” said Eric John, VP, IAB Media Center. “However 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.”
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.
Buyers Cite Many Factors for CTV’s Superiority
When comparing CTV to traditional, linear TV, buyers found data usage, transparency, and no reliance on third-party cookies as distinct advantages:
- CTV enables buyers to leverage many types of data not available within linear TV buys, including first-party brand data (65%), location data (61%), and shopping data (50%).
- Among users of the following KPIs, 57% felt CTV was more effective than linear TV at delivering website/sales actions, and 46% more effective at delivering brand perception.
- Buyers felt…