Execs To Increase Digital Video Ads

Attendance at NewFronts presentations by media advertising executives have resulted in overall interest and long-term revenue gains for new digital video platforms -- but not necessarily near-term “direct” deals.

A study conducted by Advertiser Perceptions for the Interactive Advertising Bureau (IAB) reveals that 80% of those who attended the 2014 NewFront presentations said this resulted in “more spending on original digital video content and/or motivated” an increase in 2015 budgets.

But only about a third -- 36% -- said the marketplace event “has been directly responsible for buy-side attendees’ spend on original digital video advertising over the past 12 months.”

Still, the IAB says this last data point is good news -- representing a double-digit increase of 24% in the NewFronts’ impact on share of spend over the same time period in 2013.

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Television business advertising analysts have suggested that the NewFronts presentations have generated strong interest -- TV upfront like presentations by new video/media digital platforms. But few result in specific revenue changes/shifts in traditional TV upfront advertising marketplace that occurs in June-July, where advertisers buy a large share of TV’s advertising inventory for the upcoming TV season.

The IAB study also says nearly 70% of marketing/media agency executives -- 305 buy-side executives -- plan to increase their digital video advertising spending over the next year.

The research surveyed 305 marketer and agency executives online from March 26 to April 9, 2015 -- executives involved in digital video or TV advertising decision-making at a company responsible for $1 million or more total ad spend in 2014. More than half of the participants (53%) were at a senior level.

1 comment about "Execs To Increase Digital Video Ads".
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  1. SC Roddy from WP Carey , April 28, 2015 at 1:42 a.m.

    It's very interesting to me that more money is being funelled into online video advertising and less is being spent in TV. This coincides with another important trend -- more and more consumers are watching their television online or on delay. The only TV programming that holds some real live equity anymore is sports. News to a certain degree, particularly morning programming is still consumed live, but otherwise almost all TV is watched through online streaming services. This represents a change in the business models and content producers are desperately attempting to monetize it. Those who do not watch online are often watching on DVR, which makes the value of TV ads go way down, since the consumers are skipping right through them. It seems every 2:00 video you watch online you must watch a :30 commercial for, a far worse ration than the :45/:15 ratio on TV.

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