The Interactive Advertising Bureau says digital video hit a record $11.9 billion in 2017 -- a massive 33% year-over-year increase from $8.9 billion in 2016. It is part of a total $88 billion spent on U.S. digital ad media last year.
All TV advertising revenue is at around $70 billion per year, with national TV networks representing just under $50 million; upfront is an estimated $20 million of that national TV total.
So looking at the big picture, does any of this represent opportunity?
Traditional TV networks focus more on new audience segments, attribution of specific business outcomes — tying ad exposure to website visits, floor traffic and actual sales. It is a slow but gradual effort to play in digital media’s game.
Is this enough for those small to medium-sized digital media advertisers to move into the TV space?
Over the years, TV networks have struggled to find big brand advertisers that can lift their budgets for just traditional TV networks. Compounding this, traditional TV advertising categories have been wanting in recent years.
A few years ago, Draft Kings and FanDuel -- sports fantasy game marketers -- were the last real boosts for traditional TV, which faded. Prior to this, we witnessed a few gains from some Internet consumer-based marketers and new pharma products before that.
In 2017, the upfront advertising market gained 6% to $19.7 billion, according to Media Dynamics, a media consultancy. In 2016, TV’s upfront ad-selling season witnessed a 4.6% revenue hike to $18.6 billion.
Networks say much of this was due to traditional TV advertisers “coming back” to TV from digital, given brand-safety concerns.
There should be a significant change this year. TV’s mantra should not have anything to do with coming back -- it should be more about going forward.