Nearly two dozen top online video companies are presenting to advertisers at the Interactive Advertising Bureau (IAB)’s 2014 Digital Content Newfronts. On the first day of pitches, the IAB has released a study providing evidence of the advertising industry’s growing interest in online video.
According to the study, which surveyed 297 marketer and agency executives, 65% of respondents plan to spend more on online video advertising this year than they did last year. Two-thirds of that group will supplement this increased online video budget by drawing funds from TV budgets, while 48% plan on an overall increase in advertising budgets.
Original web video is becoming more attractive to advertisers as well. The IAB’s respondents claimed they would spend 48% of their online video advertising budgets on content made for the web, though this represents just a 4% increase over the past two years. The surveyed execs are particularly bullish on the future of online video; 75% of them believe the industry will equal TV programming within the next three to five years.
“There is a clear need for a showcase and an upfront advertising buying opportunity for original digital video content,” said Randall Rothenberg, President and CEO at IAB. “The medium is already generating hit shows and cultural buzz, so it’s unsurprising that – as the study shows – advertiser budgets are following the eyeballs.”
Since the study was commissioned by a digital advertising bureau, its results and methodology could reveal some degree of bias. Even so, the surveyed advertisers include those in both traditional and new media, which theoretically creates a fairly representative sample.
The full report can be downloaded from the IAB website.