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Digital Video Ad Spend Gaining on Television

Posted Nov 17, 2015

While the growth of digital ad spend is often talked about, what is often missed is how this growth rate compares to television advertising. According to recent data released by eMarketer, digital video ad spending is poised to make significant gains on video advertising share through 2019 due to its stronger growth rate.

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As a result of this growth rate, current digital video ad spend is expected to double by 2019.

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Clearly, the exceptional growth rate of digital video advertising relative to television is evident.  In fact, digital video advertising is expected to enjoy a 23.27% CAGR through 2019, while television advertising will only see a 2.71% CAGR through the same period. This translates into the following ad spend projections for the two:

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From this view, it is clear that while digital video ad spend is growing, it is still an emerging market accounting for a minority share of video ad spend. To view this another way, the following chart illustrates anticipated video ad spend share through 2019.

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Here, we see that digital video ad spending is expected to more than double its share by 2018 and account for one sixth of all video ad spend by 2019.

Alas, as audience media mix shifts to mobile and other connected devices at an even faster pace, traditional video advertisers may find that even a 16% digital share isn’t enough.

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