Marketing Reset: Digital Video Advertising Approaches Economic Headwinds According to IAB Report

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by Samuel Pordengerg Jun 6, 2023 News
Marketing Reset: Digital Video Advertising Approaches Economic Headwinds According to IAB Report
Economic conditions and the impending retirement of third-party cookies have influenced how agencies are assessing digital video campaigns this year with an increased focus on measurement tools providing campaign delivery and sales performance results according to IAB Australia’s Video Advertising State of the Nation Report. The report, which was released today also found marketers are placing a greater focus on assessing brand impact across screens this year, rather than digital only brand lift.Brand building was identified in the report as the dominant objective for digital video advertising campaigns with agencies reporting high satisfaction with digital video’s ability to deliver on brand objectives. However, budget scrutiny has resulted in a significant increase in the use of performance objectives and measurement to increase purchase intent and sales.

Digital video advertising continues to be driven by reach, targeting, attention, and brand building. The ability to reach audiences no longer on linear TV is the main reason why advertisers and agencies use digital video. Budget, cost, and challenges in proving return on investment are some of the reasons why CTV isn't a more regular part of digital video activity.

"With budgets all under close scrutiny marketers are having to work harder and smarter to ensure their investment in the $3.3 billion video ad market delivers return on investment."

There has been a doubling of the number of agencies moving to a centralized and consolidated screens and format approach for both planning and buying to help understand reach and cross screen campaign impact.

There are additional findings from the IAB Australia Video Advertising State of the Nation report.

  • Short-form video remains the most often used format. There has been an increase in the frequency of using shoppable ads and rewarded video.
  • Integration of digital video planning and buying with TV and other media activity is increasing, with linear TV and digital advertising increasingly being planned and bought by the same agency teams.  Agencies are also understanding the nuances of each environment by increasingly adjusting creative to suit the different media environments. 
  • Agencies rely on a diverse range of data signals. Some of these targeting options potentially utilise third-party cookies and there is a significant proportion of agencies and marketers not yet making steps to people-based marketing, however the usage of first-party data signals has significantly increased since last survey.
  • Measurement complexities are challenging the advertising industry. Cross-screen measurement for both media planning and campaign delivery reporting are cited as key challenges that industry is looking to solve for the future.
  • Currently there is minimal measurement and usage of carbon emissions data being used to inform advertising decisions. Many agency respondents have the view that carbon emissions will become a more prominent metric but currently there is little clarity on how it works.

Advertisers in Australia spent more than $3 billion on digital video ads. Video ad expenditure increased on a year-over-year basis. Connected TV gives content publishers the greatest share of their video inventory expenditure.

The Hoop Research Group conducted the IAB Australia Video Advertising State of the Nation Report with 133 advertising and agency decision makers. The survey collected industry information on video advertising that appears on connected devices such as connected TV, computers (desktop/laptop), smartphones or tablets, and included video advertising in all varieties of long-form and short-form digital content and social platforms.

The results from the first and second waves of the IAB Australia Video State of The Nation Video survey were compared to the results in this report.