Buyers expand and modify measurement techniques for the growing and changing market
New research released today by IAB Australia has found that brand building is one of the key drivers of the rapidly expanding digital video market. The 2022 IAB Australian Video State of the Nation Report also found 74% of buyers are continuing to invest or increasing their investment in digital video ad formats as a way of expanding the reach of their TV campaigns.
According to the IAB Online Advertising Expenditure Report produced by PWC, Australian advertisers spent nearly $2.9 billion on digital video advertising in 2021 with expenditure increasing 48% on the prior year, a growth rate not seen since 2016.
As well as the overall trend towards increased investment, the Report found that breadth of video ad formats and environments being embraced by buyers is expanding, with more than half of the respondents using the most popular eleven formats.
The Report noted that agencies are expanding their measurement toolkit and moving towards sustainable measurement techniques. These include the increased use of market mix modelling which has increased significantly since last survey (from 32% to 47%) and brand lift studies. There has been a decrease in the use of multi-touch attribution modelling due to the increasing challenges to the accuracy of this technique from the reduction in signals including from third party cookies.
Despite these advances, the Report found that the number of marketers yet to take steps towards people-based marketing remains unchanged since 2021 at 36%, despite it enabling planning, activating, and measuring interactions across the media when third party cookies are no long available to be used.
Cross screen measurement for both media planning and campaign delivery was identified as a key issue challenging the industry. In Australia the launch of the IAB endorsed Ipsos iris content ratings which will measure video audiences across computer, smartphone, and tablet along with integration of OzTam CTV audience data, will be a significant step forward for cross-screen media planning.
Gai Le Roy, CEO of IAB Australia commented: “The video landscape continues to grow and blossom. The increasing number of opportunities from short form video, CTV ad formats, shoppable formats, video ads in gaming environments and more offers marketers a smorgasbord of options. This along with changes to tracking and privacy is resulting in a wider range of measurement techniques being introduced which is positive news. However, the wider range of formats and environments being used is making the development of fit for purpose creative challenging.”
Creative was identified in the report as a critical contributor to campaign success, yet 46% of agencies rarely or never develop digital video advertising creative for a specific media environment.
The 2022 IAB Australian Video State of the Nation Report was conducted by independent research company, Hoop Research Group. Fieldwork was conducted during March and April 2022 with 187 advertising decision makers from agencies including trading desks and DSPs participated. The first Australian Video State of the Nation Report was issued in 2021.
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About IAB Australia
The Interactive Advertising Bureau (IAB) Australia Limited www.iabaustralia.com.au is the peak trade association for digital advertising in Australia. It was established in 2005, incorporated in 2010 and is one of over 47 IAB offices globally. IAB globally is the leading trade association for developing digital advertising technical standards and best practice.
Locally there is a financial member base of approximately 150 organisations that includes media owners, platforms, media agencies, advertising technology companies as well marketers. The board has representation from Carsales, Google, Guardian News & Media, Meta, News Corp Australia, Nine, REA Group, Seven West Media, Simpson Solicitors and Yahoo.
IAB Australia’s charter is to grow sustainable and diverse investment in digital advertising in Australia by supporting the industry in the following ways:
Advocacy
Research & resources
Education and community
Standards
The Charter includes a focus on standards that promote trust, steps to reduce friction in the ad supply chain; and ultimately improve ad experiences for consumers, advertisers, and publishers.