Ad Spending Booms Amid Trust Concerns

Marketers are increasing their digital video ad budgets, with spending expected to surpass $80 billion in the U.S. this year, according to estimates by the Interactive Advertising Bureau (IAB). However, confidence in the quality of digital video inventory is wavering.

The IAB‘s latest findings suggest that buyers’ confidence in the quality of digital video inventory has slipped, with 43% of buyers expressing “somewhat to no confidence” in the quality of inventory bought through direct I/O, programmatic guaranteed, and self-serve methods.

Spending on digital video ads has exploded, with the IAB expecting it to outpace the broader ad market. As a result, scrutiny of ad buys has increased, with buyers seeking greater clarity and control.

Private marketplaces saw 55% of buyers express “somewhat to no confidence” in the quality of inventory, while open exchange/RTB saw 67% express similar doubts.

The digital video supply chain has become increasingly complex, with buyers managing deals across multiple SSPs, OEMs, content providers, and platforms. This complexity has led to a lack of transparency and trust in the quality of inventory.

Buyers are now seeking more direct relationships with suppliers, with agency-SSP relationships becoming more important. Lyndsey Garza, vp of programmatic at Dept, noted that “CTV has matured into a premium channel with premium price tags, and when you’re paying TV-sized CPMs, you expect TV-sized transparency.”

Some buyers have reported experiences where they thought they were paying for ads to run alongside premium content, but the buy included other types of programming. This lack of transparency has led to a decrease in confidence in the quality of inventory.

In response to the complexities of the digital video supply chain, agencies are seeking more direct relationships with suppliers. This approach allows for greater control and transparency, with buyers able to access more detailed data about their ad spend.

Kepler Group is taking a deals-first, curated supply approach, with Kevin Cahn, vp and head of media COEs, noting that the agency is taking a deals-first, curated supply approach.

As scrutiny around ad spend and inventory continues, buyers are seeking greater transparency and control.

The shift towards more direct relationships and greater transparency is a sign of the maturing digital video market, with buyers recognizing the need for more control and clarity in their ad spend. They are looking for more growth strategy and ways to improve their ad buying process.