Nearly 60% of marketers’ digital advertising budgets are allocated to digital video according to the 5th annual “Digital Content NewFronts: Video Ad Spend Study 2018.” Half of advertisers will increase spending on digital video, mobile video, and advanced TV, and two-thirds of advertisers will shift funds from TV budgets to fund their digital video advertising. Investments in digital video and mobile video have been climbing steadily since 2016 with over 50% growth with advertisers spending on average more than $10 million annually, especially in original digital video (ODV) programming, which is expected to grow by 68% from 2016 to end of 2018.
Some additional highlights from the study include:
- More than 8 in 10 advertisers agree that ODV programming is an essential part of their media buy
- Over 80% of brand marketers and media buyers reported that they increased their ODV budget as a result of attending last year’s Digital Content NewFronts
- 83% of advertisers believe that cross-platform measurement has improved compared to one year ago
- Half of buyers plan to spend more on social media video advertising in the next 12 months
- 44% of advertisers report strong interest in buying interactive ads on connected TV
- Nearly half (48%) of buyers plan to invest in voice artificial intelligence (AI) advertising in the next 12 months, with 44% are saying the same about virtual reality (VR)