Advertisers are poised to increase spending on digital video by 25% in 2019, according to a new report from the Interactive Advertising Bureau (IAB) presented today at the 2019 Digital Content NewFronts in New York City.
Advertisers surveyed by IAB said they expect to spend, on average, $17.8 million on digital video ads this year, compared to $14.2 million in 2018. That increased spending applies to all vertical categories, with higher-than-average growth in spending on digital and mobile advertising for fashion (45%) and media and entertainment (75%).
Note, however, that the increased spending indicated by the survey applies to individual advertiser budgets and not necessarily to the larger marketplace as a whole.
Respondents were most likely to anticipate spending more on digital video — 72% said they expected increases for both desktop and mobile platforms. It was a different story for broadcast and cable TV, where just 40% of respondents expected increased spending and another 41% expecting spending to remain the same.
As far as different channels go, social media was cited as the most important product or service by 22% of advertisers, followed by online versions of TV shows (18%). News sites, user-generated content and original digital video sites were tied at 14% each, with music video sites just behind at 13%. (IAB did not explain why those numbers add to 95% instead of 100%; we’ll assume rounding errors are to blame.)
The complete IAB Video Advertising Spend Report 2019 is online at the IAB website.