Spending on digital video ads among major brands has increased by 53% over the last two years, according to a survey released by IAB, which oversees Digital New Fronts in New York this week.
A little more than 350 branded marketers and media outlets who spent more than a million dollars in media fees completed the online survey last month.
On average, respondents said that 59% of their digital / mobile advertising spend is on video, with an average of more than $ 20 million spent each year on digital and mobile video ads. Two-thirds plan to transfer some television budgets to digital video this year. Fifty-six percent said spending on TV / cable advertising will remain stable over the next 12 months compared to the previous year. In comparison, more than half of respondents said budgets will increase on desktop / online videos, mobile videos and advanced television.
The biggest beneficiary of this continuous transition to video? Social media, in general (which largely translates to Facebook, in particular). The social media video is the only video channel that at least half of respondents said they wanted to increase over the next year.
As platforms have increased their investment in original digital video content, advertisers expect original content spending to increase 68% since 2016. More than 80% of respondents believe that ODV ( original video content) reaches an audience that can not be reached on television. However, the overall share of advertising budgets devoted to the ODV has increased slightly from 43% in 2016 to 47% in 2018.
More creativity is being developed for cross-screens, with 30% of buyers saying that digital video is meant to be used on multiple screens. Only 23% develop ads specifically tailored to each platform, and only 15% of them are primarily aimed at television in their digital video shopping.
Branded marketers who participated in the survey indicate that agencies will continue to face the pressure. Eighty-four percent agreed that "advertisers will bring more and more in-house advertising, direct-to-consumer advertising and agencies." And 74% said their companies will spend less on agencies this year direct advertising to consumers.