Online video budgets have increased 53 percent this year, and most buyers are getting their online video direct from publishers themselves, according to a recent study from Digiday and Adap.tv.
About 760 digital media and marketing professionals participated in the bi-annual State of the Industry in Online Video study. It found that 72 percent of video buyers’ budgets increased an average of 53 percent. That is up from a 20 percent increase in 2012.
Among buyers whose video budgets increased, 39 percent shifted spending from TV, compared with just 27 percent the year before. However, the average amount of TV spending tapped remains small – just 11 percent. Marketers shifted more of their budgets away from display, 41 percent.
Buyers seem to be going straight to content producers for video buys: 93 percent say they get their online video from publishers, down from 52 percent last year.
Part of this reversal could be due to a return to TV upfronts as a means of purchasing online video. This year, 31 percent said they patronize the upfronts versus 19 percent last year. It is unclear if the Newfronts will succeed in such an environment, given that three quarters of buyers do not plan to attend.
Meanwhile, video publishers are three times as likely than a year ago to run a private video marketplace. Two-thirds of brand advertisers who buy online video say they do their own programmatic buying.
“The industry is really starting to learn that ‘programmatic’ and ‘marketplaces’ don’t have to be dirty words in our space,” JoAnna Foyle Abel VP of strategic accounts for adap.tv said at Digiday’s Video Upfront breakfast where the results were released.
“Programmatic, automated media transactions don’t have to lead to price erosion, and marketplaces don’t equate to remnant inventory. Publishers are using them to create more efficiency in the media transaction, but still control CPMs, brand association, and business terms.”
Buyers said they recognize the need to combine the expertise of their TV and video-buying teams to make sense of what each medium contributes to their marketing goals, but few are actually achieving this collaboration.
Buyers in Digiday State of the Industry Surveys hail predominantly from the online side of the house, but the gulf between digital video buyers and those from “traditional” TV still is striking. Asked who buys online video in their organizations, 73 percent said the digital group, and only 21 percent said “cross-media.” The TV group accounts for just 6 percent of buyers in our survey.
Dentsu’s support of a Black-owned podcast tries to do its part to fill the advertising inequity gap
The Dentsu-backed More Than That with Gia Peppers kicked off season 3 last week, featuring several major advertisers (and Dentsu clients) including Procter & Gamble, General Motors, Kroger and Mastercard.
The Athletic’s Sebastian Tomich is looking beyond ads and subscriptions to reach profitability
The Athletic's path to profitability is set for 2025, and to achieve this goal, chief commercial officer Sebastian Tomich is focused on more than just selling ads directly to prospective advertisers.
How newsroom unions intervene when members get laid off
Amid the recent wave of media layoffs, here are some of the ways newsroom unions are intervening.
SponsoredAdvertising predictions that will shake up the media industry in 2023
Chris Kelly, CEO, Upwave Like many people, marketers and advertisers were ready to see 2022 come to a close. A year that started off promising was assailed by inflation, layoffs and the disastrous effects of RSV, the flu and additional COVID strains. Still, despite an uncertain outlook for 2023, there are plenty of reasons for […]
Despite Q1’s slow start, publishers are bullish about events revenue for 2023
Publishers like BDG and Apartment Therapy are banking on events revenue to give them a leg up in 2023.
Media Briefing: The case for and against monthly and annual subscriptions in the battle for retention
There are no one-size-fits-all solutions for improving retention in a subscriptions business. While annual subscribers might stick around longer for some, other publishers will have better luck with monthly plans.