Video Ad Spend Study, 2017 | IAB | Digital Marketing Community

Digital Marketing Researches & Reports

Video Ad Spend Study, April 2017 | IAB

Digital Advertising | Global

There is a noticeable, ongoing and strong growth of digital video. Advertisers are spending on average more than $9 million annually for their brand’s digital video ads, representing a 67% increase from 2 years ago.

Check the summary of results below to examine ad spending trends in digital/mobile video, original digital video, native advertising, cross-platform video, and programmatic video.

Digital and Mobile Video:

  • Agencies spend more on digital ads than other marketers ($9.7 million Vs. 9.1 million) in 2017.
  • Spending on digital/mobile video advertising increased across all market sectors over the past 3 years. Telecom sector achieved the highest increase with $13.3 million.
  • 56% of digital budgets are allocated to video ads (34% for digital video & 22% for mobile video).
  • 64% of digital/mobile video advertising allocation dispersed in videos like preroll & midroll and social media feeds.

Original Digital Video:

  • The original digital video is increasing in 2017 to hold 47% of video budgets share compared to 44% in 2015.
  • Original digital spending on brand’s ads totaled on average more than $4.4 million annually, representing an 80% increase from 2 years ago.
  • 4 out of 7 key market sectors allocate nearly 45% of their original digital video budgets during the NewFronts.
  • 88% of advertisers increased their original digital video budget as a result of attending the 2016 NewFronts.

Native Advertising:

  • 42% of original digital video advertising spend goes to native advertising.
  • Automotive, Telecom, and health & beauty are the top 3 sectors in native advertising allocation.
The Averege Dollar Amount Spent on Digital Mobile Video Ads.

A Graph Shows The Average Dollar Amount Spent on Digital Mobile Video Ads in Millions.

Methodology:

Data based on an online survey via with marketers,  51% were Senior VP+, 30% were directors & 19% were junior marketers; besides 53% of the sample were marketers & 43% were agencies.

IAB

The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. It is comprised of more than 650 leading media and technology companies that are responsible for selling, delivering, and optimizing digital advertising or marketing campaigns. Together, IAB accounts for 86 percent of online advertising in the United States. Working with its member companies, the IAB develops technical standards and best practices and fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing.
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