Advertisers are seeing more value in online video ads than traditional TV advertising, according to the Interactive Advertising Bureaus’ third annual Video Ad Spend study.
The annual survey asks 360 marketing and media buying professionals about their past ad spend habits and how they plan to spend their ad budgets in the next year. The takeaway from this year’s findings is that advertisers are moving away from traditional advertising channels in order to reach the more diverse audience online.
“Marketers and agencies are telling us they clearly see great value in original digital video programming,” said Anna Bager, svp and general manager of mobile and video at IAB.
The majority of advertisers surveyed by IAB (72%) said they plan to move advertising spending away from TV ads in favor of focusing on improving and sharing digital ads in the next year.
Out of those advertisers who said they intend to increase their digital video spending, 41% said they plan to pull from cable TV advertising. Similarly, 47% of these advertisers plan to pull from broadcast TB spending.
Some advertisers said they would also pull from non-video ads online (30%), advanced-interactive TV (30%), and mobile video ads (28%).
Most tellingly, more than two-thirds of advertisers and marketers (68%) said they believe original digital video will be as, if not more, important than, original TV programming within three to five years.
The study also found that advertisers and media buyers have increased their overall investments in digital video by more than 114 percent over the past two years, averaging more than $10 million annually spent on digital video.