NEW YORK: Advertisers and media buyers are investing more in original digital video programming and many anticipate this will become as important as original TV programming in the next three to five years.
According to a new report from the IAB – Digital Content NewFronts: Video Ad Spend Study, based on a survey of 360 marketing and media buying professionals – these groups have more than doubled their investment (+114%) in such programming since 2014.
Eight out of ten 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%).
And seven in ten (71%) 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.
The survey also highlighted a shift in thinking as more than two-thirds of marketers and agency executives (68%) now believe that original digital video will become as important as original TV programming in the next three to five years.
Consequently, said the IAB, both groups want to buy digital video that reaches target audiences in high-quality programming and delivers more concrete ROI metrics.
The majority of buyers surveyed plans to spend more overall on all digital video (63%) and mobile video (62%), but original digital video content has grown in importance, now accounting for 44% of a typical digital video budget, up from 38% 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.
Data sourced from IAB; additional content by Warc staff