NEW YORK: More than two-thirds (68%) of marketing and agency executives in the US expect increases to their digital video ad budgets over the next 12 months, a new survey from the Interactive Advertising Bureau (IAB) has revealed.
The industry trade body commissioned a poll of 305 marketing decision-makers from March 26 to April 9 for its Digital Content NewFronts: Digital Video Spend Study.
Now in its second year, the report confirmed widespread optimism about the medium and suggested that executives who had participated in the IAB's 2014 NewFronts event were more inclined to increase their digital budgets this year.
As budgets for digital video are raised, two-thirds (67%) of marketers and agencies expected this to come at the expense of budgets for broadcast and cable TV, which will remain the same or decrease over the coming year.
Another 67% of respondents said they believe original digital video will become as important as original TV programming within the next three to five years.
But that will depend to some extent on whether digital can produce metrics that are consistent with TV as well as how it performs on sales and branding opportunities.
According to the IAB, its 2014 NewFronts event was directly responsible for encouraging greater allocation of funds to digital advertising.
It said the event drove more than a third (36%) of attendees to spend on original digital video ads over the past 12 months, a significant increase on the 24% impact on share of spend attributed to the 2013 NewFronts event.
"This study demonstrates unequivocally that digital video is a fierce competitor for advertising dollars," said Sherrill Mane, svp of research, analytics, and measurement at the IAB.
"Brand advertisers and media buyers have been dramatically increasing their commitment to digital video, so all signs point up for this captivating form of storytelling as the industry rallies for the NewFronts."
Separate data from the Global Marketing Index, a unique monthly indicator of the state of the global marketing industry, have recorded rapid improvement in the expectations for digital budgets in the region over recent months.
Further, Warc's latest Consensus Ad Forecast, a weighted average of predictions from various sources including advertising agencies, media companies and industry bodies, expects a rise of 15.4% in total US digital adspend this year.
Data sourced from IAB; additional content by Warc staff