Digital Video Ad Spending Soars, Budgets Coming Mainly From TV

Ad spending on original digital -- both desktop and mobile -- programming has more than doubled since 2014, and those budgets have come primarily out of television, according to findings of a survey of advertiser and agency executives released this morning by the Interactive Advertising Bureau (IAB).

Results of the survey, which suggest a significant shift is taking place in the TV/video advertising marketplace, not surprisingly were released this morning by the IAB on the first day of its week-long Digital Content NewFronts in New York City.

The survey, which was conducted by Advertiser Perceptions, polled 360 ad executives between March 14 and 25, and found that their average video ad spending has nearly doubled over the past three years, but their investments in the kind of “original” digital video programming being showcased at the NewFronts rose 114% in two years.

Asked where the digital video ad budgets were being funded from, traditional TV budgets were cited as the source for 72% of total digital video and 64% for “original” digital video. And in a finding suggesting that the NewFronts are indeed beginning to take on some of the forward market budgeting that the conventional network TV upfronts have historically played, respondents indicated that 38% of their original digital video budgets will be “allocated” during the NewFronts.

The NewFronts, which were originally conceived by Publicis’ Digitas unit to foster the same kind of original content development that the network TV upfronts historically played, were folded into an industry-wide initiative overseen by the IAB beginning in 2012.

1 comment about "Digital Video Ad Spending Soars, Budgets Coming Mainly From TV".
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  1. Ed Papazian from Media Dynamics, May 2, 2016 at 10:49 a.m.

    Joe, surveys such as these, with unknown and possibly atypical samples, are fine and good, but the general concensus about the impending TV upfront--which I agree with based on my contacts in the industry---is that we will see an uptick in primetime spending as well as CPMs. One of the reasons----note this is highly subjective as there is no TV or digital "budget" at many brands---is that there is a certain level of disappointment with recent developments and issues in the digital video arena which may be causing advertisers to lower their expectations pending corrective action by digital sellers.

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