Original digital video will become as important as original TV series within the next five years, according to new research.
Sixty-seven per cent of ad agencies and marketing companies survey in a new study original digital contentwould match original TV programming in their thinking within the next three to five years.
This would happen as digital producers and distribution platforms demonstrated their originals’ ability to drive effective sales and branding opportunities, and create metrics that are consistent with television.
Most of the 305 respondents to the Interactive Advertising Bureau’s Digital Content NewFronts: Video Ad Spend Study 2015 report expected their funds to shift away from cable and broadcast platforms in the US and go to digital services.
Some 67% expected their ad spend on cable and broadcast to remain the same or decrease in the coming year, while 68% expected an increase in digital spending.
This all comes after what the IAB described as a “strong uptick from spring 2013 to spring 2015 in budget allocation to digital video by brand advertisers and media buyers”. Indeed, brand advertisers increased their digital video spend by 90% in that period.
The news also comes as the IAB’s 2015 Digital Content NewFronts event, in which 33 digital video and technology companies present their latest original programming to advertisers. The IAB says the number of presenters has increased by more than 50% year-on-year.
“This study demonstrates unequivocally that digital video is a fierce competitor for advertising dollars,” said Sherrill Mane, senior vice president, research, analytics and measurement, IAB. “Brand advertisers and media buyers have been dramatically increasing their commitment to digital video, so all signs point up for this captivating form of storytelling as the industry rallies for the NewFronts.”
Advertiser Perceptions conducted the research for the IAB, interviewing more than 300 marketing and ad execs responsible for more than US$1 million spends online between March 26-April 9, 2015.