Survey: Ad Budgets Moving from TV to Digital7 May, 2014 By: Doug McPherson
NEW YORK – The Interactive Advertising Bureau (IAB) says in a new report that 75 percent of advertisers foresee original digital programming starting to become as important as TV programming within five years.
The industry group surveyed 297 buy-side brand marketers and advertising agency executives just before the 2014 Digital Content NewFronts.
The survey uncovered a prevailing optimism around digital video, with 65 percent of advertisers expecting to spend more on digital video advertising in the next year than they did in 2013. This comes in contrast to TV advertising, with two-thirds of respondents saying that they will help pay for their digital video increases by shifting funds from TV. Nearly half (48 percent) think the increase in their digital video spend will be backed in part by an overall expansion in ad budgets.
Expectations are particularly high for original content. Executives surveyed said they plan to spend 48 percent of their Internet video budget on “made for digital” video programming in 2014, up from 44 percent in 2012. However, advertisers also said digital content providers must support this increased spending by demonstrating digital’s effectiveness in sales and branding while providing digital metrics consistent with TV.
Marketers still view measurement as the industry’s biggest weakness. Nearly 80 percent of respondents said they’re still looking for research that shows digital video advertising works as well or better than TV ads. While 74 percent said they’d be more likely to increase budgets for digital if there were metrics that are consistent with TV.
More than 80 percent said solutions that enables TV and digital buys in one buy are important. More than three-quarters of respondents spend directly with sites and nearly as many (71 percent) buy via ad networks.
Cross platform buys are expected to increase, particularly among agencies, 60 percent of whom increased spending on cross platform buys in 2013.
“This survey provides invaluable insight into advertisers’ evolving attitudes toward digital video programming and shows that the NewFronts is playing an integral part in fueling the movement of ad dollars to the medium,” said Sherrill Mane, senior vice president, research, analytics, and measurement at IAB. “The buy-side is not only foreseeing strong spending at the 2014 NewFronts, but is also recognizing the significant effect it has on their perceptions and budget decisions long after the last presentation is over.”