Most Businesses Expect Online Video To Become More Important Than TV Ads [Report]
The Interactive Advertising Bureau (IAB) has released results from a recent survey finding that most brand marketers and ad agency execs believe original digital video programming will become as important to their businesses as TV advertising within the next three to five years.
Nearly 300 buy-side executives were surveyed. About two thirds of them (65%) believe they’ll spend more on digital video ads in the next year than they did last year. Roughly the same amount said they will help pay for their digital video increases by shifting funds from TV.
48% think the increase in their digital video spend will be backed in part by an overall expansion in ad budgets. Executives, according to the survey, plan to nearly spend half of their internet video budget on “made for digital” video this year, which is an increase of about 4% since 2012.
“There is a clear need for a showcase and an upfront advertising buying opportunity for original digital video content,” said Randall Rothenberg, President and CEO of the IAB. “The medium is already generating hit shows and cultural buzz, so it’s unsurprising that – as the study shows – advertiser budgets are following the eyeballs.”
“This survey provides invaluable insight into advertisers’ evolving attitudes toward digital video programming and shows that the NewFronts is playing an integral part in fueling the movement of ad dollars to the medium,” said Sherrill Mane, SVP, Research, Analytics, and Measurement at the IAB. “The buy-side is not only foreseeing strong spending at the 2014 NewFronts, but is also recognizing the significant effect it has on their perceptions and budget decisions long after the last presentation is over.”
You can find the full report here.
Image via IAB