Brands will spend an average of $18m on digital video ads this year, almost a 25% increase year on year, according to a study from the Interactive Advertising Bureau (IAB), the trade body.

The industry group’s new report, Digital Content NewFronts: 2019 Video Ad Spend Report, was based on a survey of 350 marketers and agencies.

Retailers will lead the overall dollar spending on video ads, recording an average outlay of $23.4m. Second place on this metric goes to fashion and apparel brands, on $22.5m.

The analysis further revealed that the average brand from the study will invest $9.3m in original digital-video content, an uptick from $7.1m in 2018.

In all, video will take 62% of digital budgets, with this outlay essentially being split evenly between the desktop and mobile channels.

Some 22% of digital video spend will go to social media from the typical brand, ahead of online TV shows with 18%. News sites, user-generated content platforms and sites hosting original content each posted 14%, with music videos sites on 13%.

Fully 59% of survey respondents plan to increase their spend on advanced television – that is, addressable and data-enabled ads, whether delivered via linear means, connected TV or the over-the-top (OTT) means – in the next 12 months.

Half the contributors to the poll similarly expect to boost expenditure levels on over-the-top platforms, while 44% will maintain their current outlay.

“The availability of, and demand for high-quality video content across screens – from OTT to mobile and everywhere in between – is breaking down traditional silos between TV and digital video,” said Eric John, deputy director, IAB Digital Video Center of Excellence.

“This year’s report clearly points out that buyers are looking for more unified approaches to planning, executing, and measuring video campaigns across platforms.

“The more the industry pivots to make good on the promise of ‘video everywhere,’ the more we can expect digital video budgets to increase.”

Sourced from IAB; additional content by WARC staff