The importance of video marketing just keeps growing. According to IAB’s 2022 Video Ad Spend & 2023 Outlook, digital video spend in the U.S. grew 21% year-over-year in 2022 for a grand total of $47.1 billion. It’s not done growing yet. This year, digital video ad spending will increase by 17% to reach $55.2 billion. Here’s what your client needs to know to take advantage of this growing trend.
IAB Touts the Importance of Video Marketing
What Digital Video Encompasses
Digital video isn’t just videos you see on YouTube. IAB divides digital video into three categories:
- Connected TV (CTV): TV-like, internet-delivered content that’s delivered via a smart TV or OTT device using streaming video services, usually long form
- Social Video: Short-form video that is shared via social media platforms such as TikTok and Instagram
- Other Digital Videos: Short-form video from web/app-based publishers
Here’s how much each digital video category claimed of the 2022 digital video ad spend:
- Other Digital Video: $22.3 billion
- CTV: $18.6 billion
- Social Video: $6.2 billion
CTV may only be the digital video with the second highest spend, but it’s one of the fastest growing segments. Between 2021 and 2022, CTV ad spend increased 22%. IAB says that CTV’s ad spend is set to continue to grow since its ad spending aligns with its household penetration. “85% of U.S. households now have at least one CTV device that is being used on a monthly basis – up from 80% in 2020.” So, in 2023, CTV’s ad spend is expected to grow by 21%, which will bring it almost neck and neck with other digital video’s ad spend.
CTV impacts the importance of video marketing so much that media buyers and large media spenders consider it the TV and video ad market’s top must-buy. They consider CTV that necessary for successful media plans. In fact, CTV is so important to so many brands that they’re even taking away from their budgets dedicated to linear TV, other types of digital and mobile video and social media platforms to fund it. Why? Because of benefits such as:
- Audience targeting capabilities
- Audience reach
- Reach and scale
So, your client should definitely consider adding CTV to their digital video marketing efforts.
What Video Formats to Use
Your client’s video ads don’t have to be “Hollywood”-produced to be considered premium. According to IAB, 64% of TV/video buyers strongly agree that creator-driven video can be premium. In fact, 65% of buyers move ad spend dollars fluidly across creator-driven and “Hollywood”-produced video content. In 2023, creator-driven content is expected to outshine “Hollywood”-produced:
- Creator-Driven: 56% of buyers will consider this for ad support in 2023
- “Hollywood”-produced: 50%
At the end of the day, your client just needs to have a healthy mix of short-form, vertical and long-form videos to take advantage of the importance of video marketing.
What Your Client Should Use
So, where exactly are your client’s customers most likely to interact with your client’s video ads? The answer can be found on the target audience’s profile on AudienceSCAN on AdMall by SalesFuel. There, you’ll be able to look up a ton of TV/digital video advertising information that can best fuel your client’s upcoming campaigns, such as:
- What percentages of the audience took action within the last year after seeing CTV ads, ads on social media and ads that play before or during videos they want to watch
- How much time they spend streaming online videos on a typical day
- What subscription or streaming services they use for TV programming
Don’t wait to take advantage of the increasing importance of video marketing.
Photo by Boudewijn Huysmans