Advertisers are expected to spend about $18 million digital video this year, according to a new report from the Interactive Advertising Bureau.
Released during the first day of the IAB-organized Newfronts, the IAB Video Advertising Spend Report found that digital video ad spend is expected to rise by about 25% year over year.
The biggest growth drivers were in the media & entertainment category, which saw growth of 75% year-over-year, and fashion/apparel, which grew 43% year-over-year.
The report, which was based on a survey conducted by Advertiser Perceptions, also found that original digital video content now makes up about half of that spend ($9.3M), and that advertisers consider it “essential,” although there are still concerns about the quality level of that original content.
Specifically, when asked what the most important criteria was in deciding which publishers or brands to spend with, a majority (54%) said quality of content was the key driver.
In addition, direct-to-consumer brands are expected to make up a disproportionate amount of video ad spend, with DTC marketers forecast to spend about 50% of their budgets on digital video ads. 78% of all DTC brands are expected to buy digital video ads this year.
You can read the full report here.