Fast contributors

CPG and retail are also making big moves in 2024, becoming the “fastest growing contributors” to digital video’s revenue rise, according to the report.

Overall, CPG is expected to grow 20%, while retail will reach 30%. According to the report, CPG brands are leveraging CTV’s scale, ability to connect with consumers directly and streaming companies’ partnerships with retail media networks.

“In the world of deprecating signals and the interest in measurement, there is hardly much better than a retail media network, which is basically closed-loop attribution reporting,” Cohen said. “It’s not surprising that as the focus has been on making sure that every dollar that you spend in the market is driving the bottom line and first-party data is front and center, that retail media is filling the void for the marketplace.”

Most categories project double-digit growth in digital video spend, with auto, financial, restaurants, B2B, travel and wellness up more than 20%.

Regarding category trends, Cohen noted that digital video in whatever form is “all up” and “driving the marketplace,” but marketers should also keep creative in mind moving forward.

“When you think about the determinant of a successful media or marketing campaign, depending on who you believe, it’s either 70% or 80% based on the creative,” Cohen said. “So if we’re not going to spend time creating thousands of different iterations, personalized messaging, then all of this opportunity is not taken advantage of. That’s an interesting thing for us to watch in the future.”

To create the report, IAB partnered with Guideline (which leveraged ad billing data) as well as data from an IAB-commissioned Advertiser Perceptions quantitative survey of TV/digital video spend decision-makers and other market estimates. Part 2 of the report will be released on July 15 during the IAB Media Center’s Video Leadership Summit.