Economic conditions and the impending retirement of third-party cookies have influenced how agencies are assessing digital video campaigns this year with an increased focus on measurement tools providing campaign delivery and sales performance results according to IAB Australia’s Video Advertising State of the Nation Report.
The report also found marketers are placing a greater focus on assessing brand impact across screens this year, rather than digital only brand lift.
Brand building was identified in the report as the dominant objective for digital video advertising campaigns with agencies reporting high satisfaction with digital video’s ability to deliver on brand objectives. However, budget scrutiny has resulted in a significant increase in the use of performance objectives and measurement to increase purchase intent and sales.
Reach, targeting, attention and brand building continue to drive usage and recommendation of digital video advertising overall.
The ability to reach audiences no longer on linear TV was identified as the main reason why advertisers and agencies use digital video on CTV as a significant or regular part of their activity. However, budget, cost, and challenges in proving return on investment were cited as key reasons CTV is not a more regular part of digital video activity amongst less frequent users.
Gai Le Roy, CEO of IAB Australia, said with budgets all under close scrutiny marketers are having to work harder and smarter to ensure their investment in the $3.3 billion video ad market delivers ROI.
"Top of mind for most is how to balance activity to meet both upper and lower funnel objectives," said Le Roy.
“As linear consumption continues to shift to digital, we’ve also seen a doubling of the number of agencies moving to a centralized and consolidated screens and format approach for both planning to and buying to help understand reach and cross screen campaign impact."
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