Advanced Television

Ad spend on made-for online video up 114%

May 3, 2016

Advertisers and media buyers have made a 114 per cent increase in investments in original digital video programming over the past two years, according to the third annual Digital Content NewFronts: Video Ad Spend Study. This survey of 360 marketing and media buying professionals was conducted by Advertiser Perceptions and released by the Interactive Advertising Bureau (IAB).

Eight out of 10 respondents said that their attendance at the 2015 NewFronts resulted in increased spending on original digital video content in the 12 months that followed, and/or motivated them to increase original digital video budgets overall. Buyers who primarily focus on TV were more likely to commit those extra dollars at the NewFronts (64 per cent vs. 42 per cent), while digital-focused buyers were more likely to spend them throughout the year (49 per cent vs. 41 per cent).

Nearly three-quarters (71 per cent) of those surveyed also said that they plan to attend the 2016 NewFronts, expecting to spend more than a third of their overall digital video budgets for the year at the annual marketplace.

The study further revealed that more than two-thirds of marketers and agency executives (68 per cent) believe that original digital video will become as important as original TV programming in the next three to five years. In order to close the gap between digital video and TV programming, both groups want to buy digital video that reaches target audiences in high-quality programming and delivers more concrete ROI metrics.

While the majority of buyers surveyed plans to spend more overall on all digital video (63 per cent) and mobile video (62 per cent), original digital video content has grown in importance, now accounting for 44 per cent of a typical digital video budget, up from 38 per cent two years ago. Native advertising has also established a foothold in dollars spent on original digital video, accounting for one-third (32 per cent) of that investment.

“Marketers and agencies are telling us they clearly see great value in original digital video programming,” said Anna Bager, Senior Vice President and General Manager, Mobile and Video, IAB. “This study demonstrates that the NewFronts has the ability to move ad dollars. Considering this year’s presenter line-up of top-tier, innovative media companies, and content creators, we expect that the event will inspire spend during the marketplace’s two-week period and beyond.”

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