Commentary

Ad Spend Shifts To Desktop And Mobile Video

According to recent research from IAB and eMarketer, roughly two-thirds of US agency and marketing professionals said they expect to increase their desktop video ad spending, as well as mobile video ad spending, within the next 12 months. In fact, according to the report, the US digital video advertising market is on pace to nearly double by 2019. And, mobile is spearheading that growth.

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The Interactive Advertising Bureau, polling 360 in-house and agency marketers across industries about their digital video ad budgets, found that 63% of respondents said they expect to allocate more dollars to desktop video, and 62% said they expect to increase their mobile video ad spending within a year.

Expected change in TV/Video Ad Spending (% of Respondents)

 

Expected Spending

Format

Increase

Maintain

Decrease

Desktop video

63%

34%

3%

Mobile video

62

35

2

Advanced TV

41

52

7

Broadcase/cable/OTT TV

30

51

19

Source: IAB/Advertiser Perceptions, April 2016

US agency and marketing professionals are also planning to increase ad spending on advanced TV, broadcast, cable and OTT TV, says the report, but more respondents said they will maintain their ad spending in the next 12 months. Nearly a third of respondents said they plan to increase ad spending on broadcast, cable or OTT TV, but more than half said they plan to maintain it.

It’s not surprising, says the report, that marketers are investing more in their digital video efforts. And mobile is spearheading that growth. According to the report, mobile video ad spending in the US jumped 80.6% in 2015 and is forecast to see double-digit growth through 2019. Those growth rates exceed search and other subsets of the display category, such as banners, rich media and sponsorships.

US Digital Video Ad Spending ($Billions; % Change)

Year

Desktop

Mobile

Total

% Change (Total)

2015

$4.69

$2.78

$7.46

42.4

2016

5.51

4.08

9.59

28.5

2017

6.23

5.19

11.43

19.2

2018

7.07

5.98

13.05

14.2

2019

7.95

6.82

14.77

13.1

Source: eMarketer, September 2015

For additional information from eMarketer, please visit here.

 

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