NEW YORK, April 25, 2024 /PRNewswire/ -- Total digital video advertising spend, including Connected TV (CTV), social video, and online video (OLV), is projected to grow 16% in 2024 — nearly 80% faster than total media overall*.

In total, digital video ad revenues are expected to reach $63B in 2024, according to IAB's "2024 Digital Video Ad Spend & Strategy Report".

In the last four years, the share of ad spend has shifted by nearly 20 percentage points from linear TV to digital video, which is now 52% of the total market share.

Social Video is the Strongest Video Growth Category; CTV Projects Double-Digit Ad Spend Growth

Social video is on track toward its second year of 20% year-over-year (YoY) growth, and is projected to rise to $23.4 billion.

CTV exceeded $20 billion for the first time in 2023, and is expected to grow by 12% to $22.7 billion in 2024, 32% faster than total media overall. While dollars flowing into CTV primarily come from reallocations – particularly linear TV and other traditional media – 31% of increased spend comes from overall expansion of advertising budgets.

"Among the largest ad spenders, CTV (69%) and social video (70%) are considered 'must buys' because of their ability to deliver both scale for branding at the top of the funnel and performance outcomes at the bottom of the funnel," said Chris Bruderle, VP, Industry Insights & Content Strategy, IAB.

CPG and Retail Will Be The Fastest Growing Contributors To 2024 Digital Video Growth

For the first time ever, this year's report includes category-level ad spend projections. CPG and Retail will post double-digital ad spend growth YoY, at 20% and 30% respectively, while also generating the largest total ad spend. CPG brands are leveraging CTV's increased scale, ability to connect with consumers directly, and streaming companies' partnerships with retail media networks. Auto, financial, restaurants, B-to-B, travel, and wellness are all up more than 20%, though on a smaller base. Most categories overall project double-digit growth vs. 2023.

"Advertisers go where consumers are, and today that means digital video," said David Cohen, CEO, IAB. "The challenge ahead is this: in a crowded landscape, who can deliver the best viewing experience, with the best content choices and the most innovative advertising options? That competition is ultimately good for consumers and good for the industry."

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.

The "2024 Digital Video Ad Spend & Strategy Report" is available here. Part 2 of the report, which will be released on July 15th during the IAB Media Center's Video Leadership Summit, will dive deeper to provide insights into strategies driving activation and measurement.