Advertisers Relocate Budgets From TV To Digital Video

Multichannel Integrated Advertising

Most brand marketers and advertising agency executives expect original digital video to become as important to their business and marketing strategies as TV advertising, and are willing to relocate advertisement spending from TV to the Internet, a survey by the Interactive Advertising Bureau (IAB) reveals.

IAB surveyed 297 marketing and agency executives at companies that have spent $1 million on advertisement in 2014, with more than half of participants holding vice president positions. According to the results, 65% of advertisers expect higher spending on digital video advertising in the coming year, compared to 2013.

Meanwhile, budgets for TV advertising are expected to fall, as two thirds of respondents say they will subsidise rising digital video budgets by their spend on TV advertising.

The study also shows that the expectations of advertisers are especially high when it comes to original content – executives plan to spend 48% of their Internet video budget on “made for digital” video programming in 2014, up from 44% in 2012. Three quarters (75%) of advertisers foresee this particular medium becoming as important as TV programming within the next three to five years.

According to IAB president and chief executive office Randall Rothenberg, it is not so surprising that advertising budgets for the Internet are increasing – original digital video is already generating hit shows and a wide cultural buzz. Advertisers, however, still remain cautious when it comes to the effectiveness of digital , and are insisting digital content providers support this increased spending by delivering digital metrics that are consistent with TV.