Performance media is catching the attention of more than search advertisers and marketers, which is likely the reason why more advertisers will buy media in connected television (CTV).
The Internet Advertising Bureau released a 2025 outlook today citing estimating CTV will experience the most growth in 2025 compared with 2024. Despite a slowdown in growth, CTV will lead with 13.8% -- down from 18.4% in 2024.
Paid search ranks No. 4 in the study with 8.5% growth this year, compared with 13.1% in 2024.
Media buyers are prioritizing customer acquisition and optimizing reach and frequency, as well as media-mix modeling amid the impact of inflation on the price of their products as well as fragmentation in across the ad landscape.
It’s not just with search engines like Google and Bing or AI chatbots like Google Gemini and Microsoft Copilot that have forced segmentation, but also retail media networks and traditional programmatic ad-serving platforms.
advertisement
advertisement
The IAB report released Thursday highlights that brands and advertisers have an increased focus this year on customer acquisition as they look to generate more revenue to compensate for smaller margins.
Search advertisers and marketers are fully aware of performance media, but this year there seems to be a accelerated push for more measurable results as platforms become more fragmented. And it makes me wonder if this increase will drive up prices.
Among those who cited reasons in the IAB study to explain why they would increase their use of performance advertising in 2025, 60% pointed to pressure to demonstrate return on investments, 59% cited change in business strategy, 48% cited previous campaign performance, and 49% cited advancements in personalized technology.
Other factors include competitive benchmarking at 39%, shifts in consumer behavior at 36%, new ad channels and formats at 34%, engaging consumers authentically at 24%, and improved ecommerce and shoppable ads at 19%.
Yep, that's the way I buy Real Estate and Sports Cars ... immediately. Said no-one.