Television advertising has received a blow from the digital industry. According to AOL’s newest State of the Video Industry report for 2015, ad buyers are shifting about 10% of their overall television advertising budgets to digital platforms.
AOL surveyed about 300 agencies, brands, and publishers across the U.S., nine out of ten of which took money away from TV budgets to afford more digital advertising opportunities. Advertisers specifically saw promise in mobile video advertising, which saw an 18% increase in spending since 2014. Overall, AOL noted digital video ad spend has continued to grow over the last six years. 2015 is boasting a 42% increase over 2014’s figures to hit a total $7.46 billion projected spend. That figure should increase to a whopping $13 billion by 2019.
As part of this increased focus on digital advertising, brands and agencies are starting to put emphasis on branded content initiatives. Almost half (46%) of all the companies AOL surveyed for State of the Video Industry said they have created some kind of branded content. Plus, more than half of surveyed brands in the report claimed they would increase their branded content video budgets approximately 10% within the next year.
“Brands and agencies are looking to digital to address the need for device-agnostic video consumption, as well as explore alternatives to the cost of TV advertising, which has increased 29% since 2012,” AOL wrote in its report.
Despite these impressive stats for digital video advertising, brands did note a few problems with investing in the medium. In addition to concerns about access to premium quality content, brands and agencies are most concerned with the ability to properly measure their digital video advertising efforts. To help assuage marketers’ fears, ComScore recently released its cross-platform analytics tool Xmedia, and Nielsen and Adobe are working on technology of their own which will allow brands to measure digital audiences.
You can download AOL’s 2015 State of the Video Industry report here.