Digital video advertising is expected to represent more than half of all video spend in the US this year.
According to new research from IAB, digital video advertising is projected to represent 56% of the country’s total video spend in 2021, while connected TV continues to outpace other formats.
CTV saw its highest ad spend gains to date in 2020, with 22% year-over-year growth. This is largely due to the fact that, according to the report, 73% of CTV buyers shifted budget from broadcast and cable to CTV in 2021.
The report goes on to note that advertisers spent an average of US$20 million on CTV in 2020, with 35% saying that they expect this to increase in the ongoing year.
The key reasons cited for increasing investment in CTV include brand safety, targeting, and the ability to spend on highly specific categories.
Eric John, VP of IAB Media Center, said: “This is a bellwether moment in media that reflects the continued acceleration and shift to digital. While we are seeing growth across all digital video, the movement to more audience-based buying approaches has resulted in increased buyer demand for CTV.
“Viewers have come to expect optimized video experiences. The days of dog-owner households seeing cat food ads are ending, even on the big screen. Flexibility, addressability, and the opportunity to reach specific audiences in real time has put streaming at the big kids table, in some cases at the head of the negotiation table, right alongside traditional linear.”
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