IAB Finds Ad Spending On Original Digital Video Programming 114% Higher Since 2014

The Interactive Advertising Bureau (IAB) on Monday said that investments in original digital video programming have increased 114% since 2014, according to IAB research. The finding is part of the IAB’s third annual “Digital Content NewFronts: Video Ad Spend Study” of 360 marketing and media-buying professionals. The study was conducted by Advertiser Perceptions.

The findings, which come as the digital NewFronts begin this week, appear to support the role that the digital NewFronts play in media-buying and planning decisions. The findings reveal that eight out of 10 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% versus 41%).



Nearly three-quarters (71%) of those surveyed also 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 study further revealed that more than two-thirds of marketers and agency executives (68%) believe that original digital video will become as important as original TV programming in the next three to five years. In order to close the gap between digital video and TV programming, both groups want to buy digital video that reaches target audiences in high-quality programming and delivers more concrete ROI metrics.

The research found that while the majority of buyers surveyed plan to spend more overall on all digital video (63%) and mobile video (62%), 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 firm position in terms of the dollars spent on original digital video, accounting for one-third (32%) of that investment.

“Marketers and agencies are telling us they clearly see great value in original digital video programming,” stated Anna Bager, senior vice president and general manager, mobile and video, IAB. “This study demonstrates that the NewFronts has the ability to move ad dollars. Considering this year’s presenter lineup of top-tier, innovative media companies, and content creators, we expect that the event will inspire spend during the marketplace’s two-week period and beyond.”

The research was conducted by Advertiser Perceptions, which surveyed 360 marketer and agency executives online from March 14 to March 25, 2016. To qualify, these executives needed to be involved in digital video or TV advertising decision-making at a company responsible for $1M+ total ad spend in 2015. More than half of the participants (53%) were senior level (VP+ job title).

The complete “Digital Content NewFronts: Video Ad Spend Study 2016” can be downloaded here: iab.com/videoadspend.

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