Advertisers Expect to Spend $18 Million on Digital Video in 2019—with More Than Half of Those Budgets Devoted to Original Content, According to IAB Research

8 in 10 NewFronts Attendees Report Greater Investment in Original
Digital Content Due to Participation in the Event

NEW YORK–(BUSINESS WIRE)–Increased popularity in digital video viewing has prompted greater video
marketing investment across platforms—from mobile to over-the-top
(OTT)—according to the “Digital Content NewFronts: 2019 Video Ad Spend
Report,” released today by IAB,
the national trade association for the digital media and marketing
industries. The research reveals that brands are expected, on average,
to increase spend by over 25 percent to $18 million on digital video in
2019, with $9.3 million allocated to original content. In 2018,
advertisers, on average, spent $14.2 million on digital video
advertising, up from $12.1 million in 2017. Last year, advertisers on
average spent $7.1 million on original digital video specifically.

The report shows that the NewFronts are a prominent driver of this
growth. According to the research, 84 percent of advertisers attending
reported that the event has a significant influence on original digital
video spending. Moreover, 8 out of 10 advertisers agree that their
attendance resulted in increased spending on original digital video
content, and more than half of attendees reported that the NewFronts
resulted in greater spending throughout the year.

Direct-to-consumer (DTC) brands that have marketing budgets greater than
$1 million per year are shown to be digital video fans. Of this group,
78 percent plan to increase their ad spend on digital video in the next
12 months, and these DTC ad buyers are expected to boost their
investment by 50 percent over a year ago—a faster pace than buyers for
incumbent brands.

Other key findings include:

  • New digital video ad formats are expected to have significant increase
    in adoption in 2019–particularly stories and shoppable ads
  • Nearly two-thirds (59%) of ad buyers plan to increase their advanced
    TV spend in the next 12 months, with half reporting increases in OTT
  • Buyers report that half of digital video budgets will be spent through
    programmatic buys
  • 7 in 10 digital video advertisers currently use influencers in their
    digital video advertising
  • More than 8 in 10 advertisers agree that a unified multi-platform
    buying solution (TV + digital video) is important

“Digital video is growing—not only are the dollar figures rising
rapidly, but advertisers are eager to adopt new digital video formats as
well,” said Anna Bager, Executive Vice President, Industry Initiatives,
IAB. “Between the findings in this report, and the excitement for
original video content showcased at the NewFronts, it’s clear marketers
are embracing original digital content as a central part of their
marketing mix.”

“The availability of, and demand for high-quality video content across
screens—from OTT to mobile and everywhere in between—is breaking down
traditional silos between TV and digital video,” said Eric John, Deputy
Director, IAB Digital Video Center of Excellence. “This year’s report
clearly points out that buyers are looking for more unified approaches
to planning, executing, and measuring video campaigns across platforms.
The more the industry pivots to make good on the promise of ‘video
everywhere,’ the more we can expect digital video budgets to increase.“

To download the complete “Digital Content NewFronts: Video Ad Spend
Report 2019,” please visit https://www.iab.com/video-ad-spend-2019.

Methodology

The research was conducted by Advertiser Perceptions, which surveyed 350
marketer and agency executives online from February 18 – March 1, 2019.
Direct-to-Consumer marketers comprise 17 percent of the total sample. To
qualify, these executives needed to be involved in digital video
advertising decision-making at a company responsible for $1M+ total ad
spend in 2018, and have familiarity with the Digital Content NewFronts.

About the Digital Content NewFronts

The Digital Content NewFronts is an annual series of events founded by
Digitas, Google/YouTube, Hulu, Microsoft, and Verizon Media (formerly
known as AOL and Yahoo), in 2012. It is committed to the creation of
valuable partnerships between brands and native digital content. Our
mission is to shape the NewFronts into a new and practical marketplace
for connecting the wealth of digital content and content creators to
brands and their media and marketing agencies.

About IAB

The Interactive Advertising Bureau (IAB) empowers the media and
marketing industries to thrive in the digital economy. Its membership is
comprised of more than 650 leading media and technology companies that
are responsible for selling, delivering, and optimizing digital
advertising or marketing campaigns. The trade group fields critical
research on interactive advertising, while also educating brands,
agencies, and the wider business community on the importance of digital
marketing. In affiliation with the IAB Tech Lab, it develops technical
practices. IAB and the IAB Education Foundation are committed to
professional development and elevating the knowledge, skills, expertise,
and diversity of the workforce across the industry. Through the work of
its public policy office in Washington, D.C., IAB advocates for its
members and promotes the value of the interactive advertising industry
to legislators and policymakers. Founded in 1996, the IAB is
headquartered in New York City and has a San Francisco office.

Contacts

IAB
Laura Goldberg
347.683.1859
[email protected]

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