IAB Predicts Digital Video Ad Spend, On Average Per Advertiser, Will Reach $18 Million This Year

The amount devoted to original programming has also increased

Last year, advertisers on average spent $14.2 million on digital video ads. Getty Images

Brands are looking to spend more money on digital video, especially on original programming this year, as they head into NewFronts, according to a new study released by the Interactive Advertising Bureau (IAB).

The IAB, which organizes NewFronts, but does not put on each presentation, projected that $18 million would be spent on digital video this year, on average per advertiser, with $9.3 million earmarked for original content. Last year, advertisers on average spent $14.2 million on digital video ads (an increase from $12.1 million in 2017) and $7.1 million on original digital video.

“Digital video is growing—not only are the dollar figures rising rapidly, but advertisers are eager to adopt new digital video formats as well,” said Anna Bager, executive vice president, industry initiatives, IAB, in a statement.

The weeklong NewFronts kicks off today, with presentations from brands like The New York Times, Hulu and Target.

The IAB’s study—dubbed the Digital Content NewFronts: 2019 Video Ad Spend Report—also found that direct-to-consumer (DTC) brands with marketing budgets of more than $1 million per year were looking to increase their ad spends in digital video in the next year.

New digital ad formats, like stories and shoppable ads, were also expected to be more widely adopted this year. Buyers also said that half of their digital video budgets will be spent through programmatic and that 59 percent of ad buyers will increase their advanced TV spend in the next year.

The IAB surveyed 350 marketing and agency execs online from Feb. 18 to March 1. Those execs were involved in digital video ad decision making at companies that had more than $1 million in total ad spend last year and who were familiar with the Digital Content NewFronts.

“The availability of, and demand for high-quality video content across screens—from OTT to mobile and everywhere in between—is breaking down traditional silos between TV and digital video,” said Eric John, deputy director, IAB Digital Video Center of Excellence, in a statement.

Read the full study here.

@SaraJerde sara.jerde@adweek.com Sara Jerde is publishing editor at Adweek, where she covers traditional and digital publishers’ business models. She also oversees political coverage ahead of the 2020 election.