In a survey conducted by Advertiser Professionals and sponsored by the Interactive Advertising Bureau, marketers and agency executives feel original digital video will become as important as original TV programming within the next three to five years.
Accordingly, marketers and agency executives expect to see their digital video ad budgets increase over the next 12 months, says the second annual Digital Content Newfronts: Digital Video Spend Study, with more than 68% of 305 buy-side executives feeling there will be a greater investment in digital video from rising advertising budgets in 2015, as those budgets shift away from broadcast and cable television.
Two thirds of those surveyed said they anticipate their TV ad budgets to stay the same or decrease during 2015.
Eight in 10 advertisers and agencies also admitted that attending the 2014 Newfronts prompted them to increase their spending on original digital video content or motivated them to increase their 2015 budgets.
The study claims the Newfronts has been responsible for directly driving 36% of attendees’ spend on original digital video advertising over the past 12 months, a 24% increase over the same event and time period since 2013’s edition.
In order to catch up to TV, however, advertisers and agencies will be looking for digital to prove itself by developing effective sales and branding opportunities, as well as producing metrics comparable and consistent with TV.
The study also confirms that 67% of advertisers across the automotive, consumer packaged goods, financial service, retail and telecommunications sectors expect to increase their digital video ad budgets at the expense of their cable TV budgets.
According to the IAB internet advertising revenue report for 2014 released last week, internet advertising revenue peaked at $49.5 billion, representing 75% of the total value combination of broadcast television’s $40.5 million and cable TV’s $25.2 million in overall spend.
The current IAB study surveyed 305 marketer and agency decision-making executives from digital video or TV advertising who were responsible for $1 million-plus total ad spend in 2014.
They were polled online from March 26 and April 9, 2015, with over half the participants – 53% – employed as senior vice-presidents.