Commentary

Digital Video Spending On Rise, Boosted By Programmatic

Digital video is still growing by leaps and bounds in ad spend, and will likely continue on this path for some time, thanks to big boosts in programmatic video buying and in cross-screen buying.

About 91% of ad agencies and 86% of brands plan to allocate more dollars to digital video in 2014, according to the just-released state of the video industry report from ad platform Adap.TV, surveying agencies, publishers, advertisers and ad networks. Those increases will follow an already healthy 2013 that saw video ad spending rise at most brands and agencies.

This year, more than 90% of advertising agencies said they increased their video ad budgets, with the average increase 28% over 2012. Brands also upped the spend, with more than 85% of brands allocating more money to video as well, with the average brand spending 65% more dollars than a year ago. Programmatic and audience buying are driving the increases, doubling in spending from the last report. What’s more, marketers are increasing their use of programmatic buying across all video mediums. About 60% of both brands and agencies will use programmatic buying in their cross-screen planning and buying in the year ahead.

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Mobile video is also another hot area, with 70% of agency buyers and 43% of brands now buying mobile video.

But where someone is winning, others are often losing. The report found that brands are taking some of their increased spend from broadcast TV and display  budgets. Marketers also drew video money from out-of-home and search.

“With the advent of automated technologies to streamline the buying process as well as live and on-demand content continuing to flood onto digital, mobile and  other connected screens, 2014 is poised to bring even more buyers into the marketplace,” the report said.

Also of note, video CPMs have jumped 7% year over year, and the available inventory has also risen by more than a third.

1 comment about "Digital Video Spending On Rise, Boosted By Programmatic".
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  1. Fredrika Nihlén from Vendemore, October 24, 2013 at 2:57 a.m.

    A quick thought flew through my head reading this on my way to work in Sthlm - video budget taken from display budget...but isn't display, when targeted, one of the best distribution channels for video? VideoAds put infront of the exact right audience, delivering your message "on site". You dont need a visit to your website or even have to make them change their journey online...

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