Digital video programming experienced a real boost last year with a 114% increase in investments. That’s according to the Digital Content NewFronts: Video Ad Spend Study, from the Interactive Advertising Bureau (IAB). Based on the answers of 360 marketing and media professionals in March 2016, the research also highlights the growing importance of the Digital Content NewFronts event in motivating advertisers to spend more on original digital video content.
Marketers are now spending an average $10 million more on digital video ads per year. That’s an increase of 85% from 2014. Within digital video, mobile is a significant growth driver.
Advertisers are spending 85% more on mobile and digital video content this year.
62% of marketers stated plans to increase their mobile video ad spend. Just 2% said they would decrease their budgets. This signals the growing dominance of mobile devices as part of the consumer lifestyle. Meanwhile, less than half of marketers are planning to spend more on Advanced TV or broadcast and cable television video ads in 2016, shifting their budgets away from traditional screens.
Advertisers plan to spend more on mobile video ads
Strongly driven by mobile, digital video budget allocations have increased from 49% in 2014 to 57% this year.
Budget allocation is driven by mobile devices
A breakdown by industry shows that the health and beauty industries are the heaviest spenders in mobile and digital video content. Food and financial services are also spending more this year, whilst the automotive industry remains relatively stable in terms of budget allocation.
Annual digital and mobile video spend by sector
Anna Bager, Senior Vice President and General Manager, Mobile and Video, IAB, says:
“Marketers and agencies are telling us they clearly see great value in original digital video programming. This study demonstrates that the NewFronts has the ability to move ad dollars. Considering this year’s presenter line-up of top-tier, innovative media companies, and content creators, we expect that the event will inspire spend during the marketplace’s two-week period and beyond.”