Streaming ad spending grew 57% in 2021 to reach $15.2 billion, and the market more than doubled from 2020 to 2022.

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Ahead of the 2022 IAB NewFronts show, where media and entertainment companies pitch their future offerings to advertisers, the industry group behind the multi-day show has released its annual State of the Video Advertising Industry Report. According to his findings, digital video advertising grew by 21% in 2021 and is expected to grow another 26% in 2022 to reach $49.2 billion.

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The connected TV advertising market is leading this growth, signaling a significant shift from traditional TV viewing to video streaming. “Video ad spending in 2021 and forecast for 2022The report says Connected TV ad spending grew 57% in 2021 to $15.2 billion and will rise another 39% in 2022 to $21.2 billion. And between 2020 and 2022, Connected TV ad spend is projected to more than double, up 118%. The IAB says that despite these numbers, the advertising industry hasn’t caught up with what viewers pay the most attention to.

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In particular, it notes that connected TV viewing in 2022 will account for 36% of the total time spent on both linear TV and connected TV, and connected TV advertising spending does not match this figure. Instead, only 18% of total video ads go to Connected TV, including Connected TV (CTV) viewing, linear, social, and short video.

“Digital video is a driving force for shoppers and will continue to be so in 2022,” said Eric John, vice president of IAB Media Center. “However, while CTV is leading to a significant increase in digital video ad spending, the amount of dollars currently allocated to CTV is not proportional to the amount of time viewers spend on the channel. Now is the time for brands and consumers to keep their eyes on the consumer.”

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Ad buyers are also facing an industry with many more services available, including ad-supported streamers such as Hulu (with ads), Peacock, Paramount+ and more, including in recent months: HBO Max, and Disney+ who announced plans. Moreover, in a major turn of events, Netflix just said it would introduce advertising level.

Of course, the IAB is also keen to see Connected TV become a bigger part of the market, as it notes that brand advertisers can access additional data, such as location or purchase data, when buying Connected TV ads versus linear. And 59% of ad buyers said they were “very clear” where their Connected TV ad was shown, compared to 50% for social video and 43% for digital video.

However, the report acknowledges that there are still challenges in the connected TV market, including the measurement of additional reach, frequency management, and a lack of transparency and interoperability across platforms and publishers. He also pointed to the fragmentation of software supply chains as another problem. But it does say that nearly 9 in 10 (88%) of ad buyers expect linear TV and connected TV coverage in the coming years.


Credit: techcrunch.com /

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