DCNF: Watch Out TV: Advertisers Spend More on Digital Programming

/ Apr 28, 2014


A new Interactive Advertising Bureau (IAB) study indicates that most brand marketers and advertising agency executives expect original digital programming to become far more integral to their business approach within the next three to five years. That should be the time it takes for online programming to reach television’s importance when it comes to advertising. According to the study, brands and agencies will start taking from their television budgets and reallocating funds to internet spending.

Also managers of the Digital Content NewFronts that’s taking place this week, the IAB published this study at an opportune time, as the event brings together presentations from 22 of the most influential digital video and advertising companies over the course of the next 10 days.

Having surveyed 297 buy-side executives, research firm Advertise Perceptions found that 65% of advertisers plan to put more of their budget into digital video advertising than they did last year. Nearly half of the advertisers believe that an overall increase in ad budgets will contribute to the increase in digital video spending, in particular. Furthermore, those surveyed expect to put almost half of their online video budget towards original, made-for-the-web content. 75% agree with the study’s overall message, that online programming will become as important as television in three to five years.

NewFronts is no small contributor to this increase. Founded as a marketplace in 2012 by DigitasLBi as well as AOL, Google/YouTube, Hulu, Microsoft, and Yahoo, NewFronts has positively impacted the market’s perceptions on original, online content. The Advertiser Perceptions research for the IAB study indicated that of 90% of advertisers aware of NewFronts, 80% of them plan to attend—a 145% increase from those who attended in 2012. Participation in the event last year apparently encouraged advertisers to spend more on digital programming in their 2014 budgets. Watch out, television–online media is quickly catching up in the advertising game.

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