Social Video Ad Spend Surges Past CTV Growth, Reshaping NZ Media Budgets

Tuesday, 5 May 20268 min read1 views

Global estimates predict social video advertising will experience faster growth than Connected TV (CTV) ad spending this year. This shift reflects advertisers' efforts to follow audiences increasingly engaging with video content on platforms like TikTok, YouTube, and Instagram, necessitating a re-evaluation of media allocation for New Zealand marketers.

What Happened

•Industry projections indicate social video ad expenditure is set to outpace Connected TV (CTV) growth rates in the current year.
•Advertisers are increasing investment in social video to align with evolving consumer viewing habits.
•Platforms such as Facebook, YouTube, TikTok, and Instagram are key beneficiaries of this increased ad spend.
•The trend highlights a strategic move to reach audiences where they are most actively consuming video content.
•This growth signifies a continued fragmentation of the digital video advertising landscape.
•The analysis is based on IAB estimates, reflecting broader market trends.

Why It Matters for NZ Marketers

•New Zealand consumers exhibit high engagement with social media platforms, making social video a critical channel for local brands.
•NZ marketers must assess current media budgets to ensure optimal allocation between CTV and social video for local audience reach.
•The rise of short-form video on platforms like TikTok and Instagram Reels is particularly strong in New Zealand, influencing campaign effectiveness.
•Local agencies need to enhance capabilities in social video creative and performance measurement to capitalise on this shift.
•Understanding the unique audience demographics and content preferences across various social video platforms is crucial for NZ campaigns.
•This trend could lead to increased competition and potentially higher CPMs on popular social video channels in the NZ market.

Strategic Implications

•Reallocate portions of digital video budgets towards social video platforms where audience attention is concentrated.
•Develop bespoke creative strategies optimised for diverse social video formats and platform-specific user behaviours.
•Prioritise data-driven audience segmentation and targeting within social video campaigns to maximise ROI.
•Invest in robust analytics to accurately measure the impact and attribution of social video advertising.
•Explore influencer marketing and user-generated content strategies to amplify brand messages authentically on social video.
•Continuously monitor platform algorithm changes and emerging social video trends to maintain competitive advantage.

Future Trend Signals

•Continued diversification of video consumption across multiple digital touchpoints.
•Increased demand for integrated campaign planning that seamlessly bridges social and CTV strategies.
•Evolution of measurement tools to provide a holistic view of video ad performance across fragmented channels.
•Growing importance of interactive and shoppable video formats within social platforms.

Sources

Social video ad spending is set to outpace CTV in growth rate this year — Digiday

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Editorial note: This analysis is original, AI-assisted editorial content. All source material is attributed with links. No full articles are reproduced. Short excerpts are used under fair dealing principles.