Some 59 percent of marketers’ digital advertising budgets are currently spent digital video, according to a new report from the Interactive Advertising Bureau (IAB). What is more, over 50 percent of buyers plan to increase digital and mobile video spending in the next 12 months, with these advertisers set to increase spending on digital and mobile video by 53 percent compared to two years ago, to an average of more than USD 10 million annually. Investment in original digital video programming has also been climbing steadily since 2016 and is expected to soar up to 68 percent by the end of 2018.
Other findings reveal that advertisers across all sectors highly value original digital video programming, with automotive and telecommunications being the biggest spenders, and health and beauty generating the biggest uptick in spend over the course of the last three years. Nearly 9 in 10 advertisers agree that original digital video programming programming is an essential part of the marketing mix, with a majority saying that the medium allows for more prominent placement and branding, while reaching audiences that are unavailable through linear television.
The report also indicated that half of buyers plan to spend more on social media video advertising in next 12 months and that around 44 percent said there is strong interest in buying interactive ads on connected TV. Finally, nearly half (48%) of buyers plan to invest in voice artificial intelligence advertising in the next 12 months, with 44 percent saying the same about virtual reality.
