According To The IAB, Ad Spending On Digital Video Will Exceed $55.2 Billion This Year

According to the Internet Advertising Bureau, which released a study finding that spending on digital video advertising is growing at nearly double the rate of other forms of digital advertising, and headed toward a record year, as viewers continue to embrace the streaming-video revolution, so too are the advertisers, shifting there at increasing rates from legacy broadcast, cable, and other traditional media outlets.

That should be good news for businesses relying on ad-supported streaming to finance their entry into the relatively new market, especially since many of them have had to cut back on their multibillion-dollar investments in subscription-based services.

The IAB stated that the sector’s ad expenditure is anticipated to increase 21% this year, compared to an 11% increase for all digital advertising, as part of this week’s NewFronts advertising presentations in New York. In 2023, it’s anticipated that $55.2 billion would be spent on digital video advertisements overall.

The IAB noted that advertising dollars leaving traditional broadcast and cable don’t merely travel to media companies’ streaming services. The enormous audiences that watch video content on Alphabet’s YouTube, Meta’s Facebook and Instagram, Snap, Twitter, and particularly TikTok continue to draw tremendous amounts of money, especially for creator-led content.

However, the organization also noted that the market is challenging, with problems involving inconsistent viewer metrics, transparency, and even the simplest definitions of important terms. Because of the growing variety of platforms and measurement standards, it is increasingly more challenging for media buyers to understand exactly what they are purchasing.

According To The IAB, Ad Spending On Digital Video Will Exceed $55.2 Billion This Year

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