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The IAB has released the second part of its “2024 IAB Digital Video Ad Spend & Strategy Report,” marking a significant shift in the criteria for digital video investments.
Since YouTube introduced video advertising in August 2007, brands and their agencies have traditionally focused on reach and frequency. However, the landscape has now evolved, with business outcomes taking precedence as the primary success indicators. Despite this transformation, measuring these outcomes still presents substantial challenges, according to Cintia Gabilan, VP of the Media Center at IAB.
In a press statement, Gabilan remarked:
“For as long as we can remember, the industry has centered around reach in its transactions and measurements.”
She continued:
“Now, however, business outcomes have emerged as the foremost metrics for evaluating success, with reach and frequency following behind. Nevertheless, measurement capabilities have not yet reached the necessary standard, with two-thirds of buyers identifying issues across nine crucial measurement areas.”
Presented at the IAB Video Leadership Summit (VLS), the second part of the report offers critical insights:
Emerging Trends in Measurement Practices
The industry is shifting away from traditional panel-based ratings, with 89% of advertisers now adopting alternative measurement vendors. Multi-screen attribution (45%) and real-time reporting (43%) are prioritized by buyers, with 28% already using alternative currencies.
David Cohen, CEO of IAB, emphasized in a press release:
“As the saying goes, ‘with great power comes great responsibility’.”
He added:
“The significant growth of digital video underscores the need for improved measurement, viewability, standardized data, and transparency in ad placement. The video ecosystem must prioritize innovation, especially in measurement.”
The IAB collaborated with Guideline, leveraging ad billing data, market estimates, and insights from an Advertiser Perceptions survey of TV/digital video ad spend decision-makers to compile the comprehensive “2024 IAB Digital Video Ad Spend & Strategy Report.”
Many brands and their agencies may be drawn to begin with Section 1 of the report titled “Ad Spend Projections, content formats, and programmatic.”
Some media buyers might skip ahead to Section 2 titled “Buyer Selection Criteria: Channels, Platforms, and Ad Partners.”
However, my focus was on Section 3: “Measurement Challenges and Mitigation Tactics.”
Why did I choose to start here?
As I mentioned in a previous article, I’m reminded of Yogi Berra’s wisdom: “If you don’t know where you are going, you might wind up someplace else.” Moreover, I was particularly interested in understanding the nine key areas of measurement causing issues.
To my surprise, the foremost issue turned out to be co-viewing.
Here’s how Google defines co-viewing:
“Co-viewing occurs when multiple people watch YouTube on a connected TV (CTV) device together and view an ad simultaneously, potentially increasing impressions and campaign reach.” Google also notes, “Panels indicate that multiple individuals watch YouTube together on TV screens, a behavior akin to traditional linear TV viewership.”
According to the report, co-viewing is considered more crucial than placement transparency, brand safety/suitability, viewability, ads on Made for Advertising (MFA) websites, ads on TVs switched off, obtaining sell-side data, utilizing multiple currencies, and standard sell-side targets.
The report cites an unnamed director from an agency who emphasizes, “Measuring co-viewing behaviors is particularly critical because it directly impacts our comprehension of audience engagement and reach.”
“Failing to accurately capture who watches content together risks misinterpreting viewer data and forming incorrect assumptions about our target audience’s preferences and behavior.”
Part 2 of the “2024 IAB Digital Video Ad Spend & Strategy Report” highlights significant measurement challenges across different channels, particularly in online video and Connected TV (CTV).
Online video faces complexities stemming from diverse measurement frameworks at the publisher level, which complicate buyers’ efforts to understand placement, viewability, and guarantees.
Similarly, Connected TV (CTV) encounters obstacles due to the absence of standardized show-level data and inconsistent measurement methodologies.
Moreover, smaller advertisers express heightened concerns about issues such as viewability and brand safety compared to their larger counterparts. Their focus tends to be on targeting specific audiences rather than achieving broad reach, necessitating precise measurement tools.
However, these advertisers often struggle with limited resources to engage measurement partners and encounter transparency issues with social platforms. Streaming platforms seeking to attract more small advertisers must prioritize building trust in these critical areas.
According to the report, an agency director emphasized:
“Brand safety is our primary concern because it directly impacts our brand’s reputation. We aim to exert control over where and to whom our ads are displayed, as well as which audiences we target.”
Brands express heightened levels of worry about issues such as viewability and standardized targets compared to agencies.
Key factors include smaller to mid-tier agencies lacking the resources to engage measurement partners, possessing less expertise in measurement, and having reduced involvement in performance evaluation, typically managed by larger agencies.
The report also cites a B2B brand manager who remarked:
“A brand that can demonstrate a positive, professional, and appealing visible impression is more likely to differentiate itself in a competitive marketplace.”
With the growing emphasis on privacy-by-design, buyers increasingly rely on measurement tools that minimize dependence on data signals. AI, data-driven optimization, multi-touch attribution (MTA), and marketing mix modeling (MMM) enable buyers to evaluate performance using modeled data amid a shrinking data pool.
Furthermore, AI supports these tools by measuring brand safety, suitability, and fraud (41%), and by predicting outcomes (32%).
The report also highlighted the increasing adoption and interest in alternative currencies. Currently, 89% of advertisers are actively exploring alternative currencies through transactions, testing, or discussions with vendors.
Nearly 30% of TV and video buyers have already begun using alternative currencies for transactions. On average, buyers are currently engaged with or testing three different alternative currencies, with expectations to expand to four by 2025.
The primary drivers for adopting alternative currencies include multi-screen attribution and real-time reporting. Smaller advertisers show a greater propensity to utilize alternative currencies for purposes such as assessing creative effectiveness (57%), analyzing conversions (51%), and obtaining second-by-second reporting (51%).
According to a department head from a B2B brand quoted in the report:
“To adapt to evolving viewing habits and technologies, there is a need for real-time audience measurement metrics that capture cross-platform viewership, engagement, and demographic data.”
Despite their potential benefits, widespread adoption of alternative currencies faces significant challenges. These include implementation costs, system complexities, and the necessity for cooperation across various industries.
As highlighted by a department head at an agency in the report:
“The reconciliation of currencies poses challenges due to differing valuation techniques and exchange rates among different currencies.”
Brands and agencies are advised to delve into the section titled “Measurement Challenges and Mitigation Tactics” before delving into the final section of the report: “Recommendations.”
Why? As Yogi Berra might quip, “If you don’t know where you are going, you might wind up someplace else.” Alternatively, he might say, “If you don’t know where you are going, you might not get there.”
In either case, addressing the nine measurement challenges is crucial if your video ad campaign’s key performance indicators now revolve around business outcomes such as store/site visits, leads, and sales.
Original news from SearchEngineJournal
