As users shift from traditional to mobile, so advertisers are following suit and looking for today’s premium environments wherein to reach these users. A recent IAB study interviewed 360 marketer & agency decision makers with seven figure & greater ad spends, and the trend was clear: marketers are shifting their attention to digital video.
Growth in Video
According to the study, digital video ad spend has grown 85% in the last two years. Breaking down this figure, agencies reported a 75% growth and marketers reported a 95% growth. For both groups, much of this growth has come from mobile video ad spending, which respondents expressed “robust spend optimism,” a stark contrast from their plateaued television spending plans.
Marketer Channel Optimism
Digging into optimism a bit further, both digital and mobile video enjoyed a 60% optimism score, whereas traditional television had only an 11% optimism score. Net optimism was defined as the percentage of respondents planning to increase their spend in a medium less the percentage looking to decrease.
How Budgets are Shifting
As digital and mobile ad spend is growing faster than overall budgets, the dollars are being pulled from other areas. Broadcast and cable television advertising is hardest hit, with 47% and 41% of advertisers shifting funds away from these mediums, respectively. Non-video digital ad formats are also seeing a decline. In 2014, video accounted for 49% of respondent’s digital ad spending. Today, it accounts for 57%.
The Demand for New Content
More than ever before, advertisers are looking for unique, original digital programming. In fact, ad spending in the new premium environments have more than doubled since 2014. Two thirds of advertisers surveyed feel that not only is this new content more engaging than TV and reaches audiences that TV simply misses, but that advertising on today’s premium content will become as important as television advertising soon.
Join the Conversation
How has your media mix shifted in the last two years? Where do you see it shifting this year? Tweet your thoughts to @AdColony. For the latest AdColony mobile news and updates, follow @AdColony on Twitter, like us on Facebook, or connect on Linkedin.
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