Video Budgets Strong in Q4 2021 Despite Omicron Challenges

Niamh Carroll 20 January, 2022 

A net balance of seven percent of marketers told the IPA that they increased their video budgets in Q4 2021, as reported in the latest Bellwether Report. Video was the strongest performer out of the media categories measured by the IPA.

The quarterly report asks marketers to break down their budget spending over the past three months. A net balance of 6.1 percent of marketers reported that they are revising up their budgets. This represents a slowing of the growth from the previous quarter (Q3 2021), which saw a net balance of 12.3 percent of marketers upping their budgets. 

In terms of individual categories, other online media was the only category other than video to see a net increase in spending (4.5 percent). The IPA groups TV, online video and cinema in the “video” category. In the video category almost double (15.4 percent) the number of marketers reported increasing their budgets, versus those decreasing them (8.1 percent). 

Those working in video advertising, have welcomed the latest IPA Bellwether figures. 

“Video advertising is evolving rapidly, and the +7.3 percent growth the Q4 2021 IPA Bellwether Report reveals, reflects video’s ability to engage, inspire and deliver a great consumer experience,” said Nick Reid, SVP managing director EMEA, DoubleVerify, “With the continued growth of short-form social video platforms and the CTV marketplace continuing to evolve, we are likely to see investment continue as brands expand beyond the more traditional digital video formats.”

The other categories (audio, published brands and out-of-home) all saw a net decline in budgets. In the out-of-home category, reinstated work from home orders may have affected budgets. There, a net balance of -8.3 percent of companies reported decreasing budgets, compared to a decrease of -2.0 percent in the previous quarter.

A positive outlook for 2022

Q4 2021 budgets were disrupted by the emergence of the omicron variant and supply chain challenges. Despite a slowing of budget growth from the previous quarter, the IPA Bellwether report still forecasts significant growth in 2022/23. 

It seems that many marketers are looking to move on from the pandemic and speed up recovery. 34.5 percent of surveyed companies reported that they were planning to increase their marketing spend in the 2022/23 financial year. 

The IPA anticipates that there may be further challenges ahead in the year to come, but urges marketers to continue investing in media. 

“Going forward, new variants – alongside supply chain issues and heightened inflation – may indeed induce further wobbles. They key for businesses to weather these fluctuations will be, where possible, to invest in the longer-term and in brand-building media. As the evidence proves, brands that continue to invest in their marketing throughout the toughest of times come out on top,” said Paul Bainsfair, IPA director general.

 

2022-08-25T17:33:02+01:00

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