Dive Brief:
- The Interactive Advertising Bureau (IAB) found that spending on original digital video advertising increased 114% since 2014.
- The research also found that 80% marketers attending the Digital Content NewFronts event reported the event influenced their increased spending on the format for the 12 months following the event.
- Sixty-eight percent of respondents believe original digital video will become as important as original TV programming within the next three to five years. Those respondents are looking to buy digital video that reaches target audiences with high-quality programming while delivering solid ROI metrics.
Dive Insight:
“Marketers and agencies are telling us they clearly see great value in original digital video programming,” Anna Bager, senior vp and general manager of mobile and video for IAB, said in a statement. “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.”
The research also found that 63% of respondents plan to spend more overall on digital video, with 62% spending more on mobile video. Original video content now accounts for 44% of digital video budgets, up from 38% in 2014, and native ads account for 32% of original digital video spending.
EMarketer ad spending forecasts updated at the end of March see digital and TV spending neck-and-neck with TV leading by a single percentage point and digital spending expected to pass TV next year for the first time. Within the digital channel, mobile ad spending is expected to account for almost 64% of the total this year. Breaking digital down to display ads, programmatic is expected to account for 67% of that spending in the U.S.
As ad dollars continue to shift to digital, marketers are beginning to see a slight focus even from mobile to video as the category picks up steam.
