Digital video ad spends on original programming soars: IAB Research

IAB’s freshly released third annual ‘Digital Content NewFronts: Video Ad Spend Study’ says aAdvertisers and media buyers have made an impressive 114 percent increase in investments in original digital video programming over the past two years. The survey of 360 marketing and media buying professionals was conducted by Advertiser Perceptions and released by the Interactive Advertising Bureau (IAB).

image-digital-video-ad-spends to-grow-mediabriefReinforcing the critical role the Digital Content NewFronts has played in media buying decisions, 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% vs. 42%), while digital-focused buyers were more likely to spend them throughout the year (49% vs. 41%).

Nearly three-quarters (71%) 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.

Major Takeaways from NewFronts. Watch this video:

The study further revealed that more than two-thirds of marketers and agency executives (68%) believe that original digital video will become as important as original TV programming in the next 3 to 5 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%) and mobile video (62%), original digital video content has grown in importance, now accounting for 44 percent of a typical digital video budget, up from 38 percent two years ago. Native advertising has also established a foothold in dollars spent on original digital video, accounting for one-third (32%) of that investment.

Anna Bager, SVP & GM, Mobile and Video, IAB. (Bager was named one of 30 Most Powerful Women in Mobile Advertising in 2015)

“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.”

The research was conducted by Advertiser Perceptions, which surveyed 360 marketer and agency executives online from March 14 – March 25, 2016. To qualify, these executives needed to be involved in digital video or TV advertising decision-making at a company responsible for $1M+ total ad spend in 2015. More than half of the participants (53%) were senior level (VP+ job title).

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