Commentary

Media Buyers Are Upping Digital Video's 2021 Budget Share, But Also Linear's

Media buyers surveyed by the Interactive Advertising Bureau at the end of this year’s first quarter plan to increase U.S. spending for digital video, including CTV/OTT, to 20% of their total media budgets this year — up from an average of 13% in IAB’s last survey, conducted in November 2020. …

3 comments about "Media Buyers Are Upping Digital Video's 2021 Budget Share, But Also Linear's".
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  1. Ed Papazian from Media Dynamics Inc, April 23, 2021 at 6:01 p.m.

    The answers indicate to me that the sample does not include many ---if any--- people who are actually involved in the national "linear TV" upfront. Those who make such buys for the largest 400-500 branding advertisers, whose spending accounts for roughly 70% of national TV ad dollars, do not make the kinds of decisions that are listed---like how much to spend on digital video as opposed to "linear TV" to say nothing of "search", radio, social media, etc.  So are these "media buyers" actually media planners or  client marketing folks or direct marketers or brand managers or sales promotion guys or what?Accordingly I can draw no conclusions from such findings. Perhaps, if there were breakdowns by kind of activity and spending level, then one might get a clue about what this means ----per buying category----but that's about all.

  2. John Grono from GAP Research, April 26, 2021 at 6:28 p.m.

    How do those proportions stack up against the SMI data - 72% Digital, 28% Traditional?

    Does anyone have the numbers?

  3. Ed Papazian from Media Dynamics Inc, April 26, 2021 at 6:56 p.m.

    John, if you are asking about the respective share of ad revenues and this would be for a common activity----like branding campaigns---not search, DR, sales promotion, etc. the typical national TV advertiser allocates about 60% to TV and only 20% to digital and some of the latter is not really branding but more akin to sales promotion. If you mean search---which is the dominant form of digital advertisin---, then digital has a virtual monopoly on ad spending.

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About the Author

Karlene Lukovitz is editor of MediaPost's "Digital News Daily" and writes the weekly "Video Insider" and "Advanced TV Insider" columns. You can reach her at karlene@mediapost.com.

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