Digital video ad spend keeps rising, with social media (i.e., Facebook) set to see most growth
The IAB's latest video advertising study finds two-thirds of advertisers will shift budgets from TV to digital.
Digital video ad spend among large brands has increased by 53 percent over the past two years, according to a survey released by the IAB, which is overseeing the Digital New Fronts in New York City this week.
Just over 350 brand marketers and media buyers with more than $1 million in annual media spend completed the online survey last month.
On average, the respondents said 59 percent of their digital/mobile ad spend goes to video, with an average of more than $20 million spent on digital and mobile video ad buys annually. Two-thirds plan to shift some TV budgets to digital video this year. Fifty-six percent said broadcast/cable TV ad spend will remain flat over the next 12 months compared to the previous year. In comparison, more than half of respondents said budgets will increase on desktop/online video, mobile video and advanced TV.
The biggest beneficiary of this ongoing shift to video? Social media, broadly (which largely translates to Facebook, specifically). Social media video is the only video channel that at least half of respondents said they plan to increase over the next year.
As platforms have increased investment in original digital video content, advertisers expect spend on original content to increase by 68 percent since 2016. More than 80 percent of respondents agreed that ODV (original content video) “reaches an audience that can’t be reached on TV.” However, the overall share of video ad budgets dedicated to ODV has ticked up marginally, from 43 percent in 2016 to 47 percent in 2018.
More creative is being developed for cross-screen purposes, with 30 percent of buyers saying digital video is intended to be used across screens. Just 23 percent develop ads tailored specifically for each platform, and only 15 percent repurpose creative primarily intended for TV in their digital video buys.
The brand marketers who participated in the survey indicate agencies will continue to face pressure. Eighty-four percent agreed that “advertisers will increasingly bring more advertising functions in-house, advertising direct to the consumer, and out of the hands of agencies.” And 74 percent said their companies will spend less with agencies this year and shift funds to direct-to-consumer advertising.
Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.
New on MarTech