The digital video advertising landscape is undergoing a seismic shift, with spending projected to surge by 16% in 2024, nearly outpacing the overall media growth rate by 80%, according to the latest findings from the Interactive Advertising Bureau (IAB). This year, digital video ad revenues are anticipated to skyrocket to an impressive $63 billion.
The “2024 Digital Video Ad Spend & Strategy Report” released by IAB highlights the dynamic growth across various segments, including Connected TV (CTV), social video, and online video (OLV). Over the past four years, there has been a notable migration of ad dollars, nearly 20 percentage points shifting from linear TV towards digital video, now claiming 52% of the total market share.
Social video emerges as the powerhouse, marking its second consecutive year of 20% year-over-year growth, with revenues expected to hit $23.4 billion. Meanwhile, CTV continues its impressive ascent, breaking the $20 billion mark for the first time in 2023 and anticipated to grow by another 12% to reach $22.7 billion in 2024.
Chris Bruderle, IAB’s VP of Industry Insights & Content Strategy, explains, “CTV and social video have become critical ‘must buys’ for advertisers, offering unmatched scale for branding and measurable performance outcomes, making them invaluable across the advertising funnel.”
The report also reveals sector-specific growth, with Consumer Packaged Goods (CPG) and Retail leading the charge. These sectors are projected to experience double-digit growth rates of 20% and 30%, respectively, in 2024. This growth is driven by CTV’s expanded reach, its direct connection to consumers, and strategic partnerships with retail media networks.
The automotive, financial services, restaurant, business-to-business, travel, and wellness sectors are also expected to post significant growth, all exceeding 20% on a smaller base, underscoring the broad appeal and effectiveness of digital video advertising.
David Cohen, CEO of IAB, highlighted the competitive edge digital video offers, “Advertisers are flocking to digital video because it’s where the consumers are. The challenge now is to deliver the most engaging viewing experiences, top-tier content, and innovative advertising solutions. This healthy competition is a boon for consumers and stimulates industry growth.”
The IAB report, which included contributions from Guideline and a survey conducted by Advertiser Perceptions, not only sheds light on spending trends but also sets the stage for further discussions at the IAB Media Center’s Video Leadership Summit on July 15, where Part 2 of the report will delve into activation and measurement strategies.
For businesses and advertisers aiming to stay ahead of the curve, the explosive growth in digital video advertising presents unprecedented opportunities to capture audience attention and drive meaningful engagement in an increasingly digital world.