Digital video to surpass linear TV ad spend in 2024
By Oluwaseyi Lawal
The Interactive Advertising Bureau, IAB, has released a report stating that digital video advertising is projected to outpace linear TV advertising this year, with a 16% growth compared to the previous year, reaching $62.9 billion.
Estimates from Advertising Perceptions and Guideline indicate that digital video ad expenditure, covering social media, connected TV, websites, and online video, will hold a 52% share, while linear TV will account for 48%.
Other analyses from third parties suggest that linear TV spending may decrease slightly by single-digit percentages this year, ranging from $58 billion to $65 billion. Since 2020, there has been a significant shift of approximately 20 percentage points towards digital video from linear TV, with digital video holding a 29% share and linear TV at 71% in 2020, as reported by the IAB.
As per the research findings, significant TV advertising sectors are increasing their investment in digital video compared to the previous year. These sectors include consumer packaged goods, which have risen by 20% to reach $12.6 billion; retail, experiencing a 30% increase to $7.4 billion; technology, up by 6% to $6.5 billion; entertainment/media, showing a 7% increase to $5.9 billion; and pharmaceuticals, with a 2% rise to $5.4 billion.
Examining specific digital video platforms, the research predicts that expenditure on connected TV (CTV) advertising will increase by 12% to reach $22.7 billion. Additionally, spending on social media video is expected to rise by 20% to $23.4 billion, and online video expenditure will see an 18% boost to $16.8 billion.
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