TV advertising spends still trump digital video
| 13 June 2014
Digital video advertising in the US is increasing at an exponential rate, but, says eMarketer, TV will add more new dollars this year — $2.19 billion more than 2013, compared with a $1.76 billion increase in digital video ad spending,
Furthermore, the analyst believes that digital video ad spending will increase 41.9% this year, reaching $5.96 billion, while TV advertising in the US will grow 3.3% to hit $68.54 billion.
Despite the disparity in growth rates, TV will continue to outpace digital video in dollar growth through 2018. In fact, in 2016, TV will almost double the amount of new dollars going to digital video channels, thanks mainly to political advertising stemming from the upcoming US presidential election that year.
"The digital video audience is spread more thinly than a mass television audience, and that segmentation makes digital video ad buys more complex and less reliable than TV advertising," said David Hallerman, principal analyst at eMarketer. "Time spent with digital video is growing significantly, and it's taking away some TV time, but given the diversity of placements and platforms, digital video viewers are more difficult for advertisers to target."
Furthermore, Hallerman added, "much of the time audiences spend with digital video is not useful for advertisers. Some of that is when they view clips that are either too short or not brand friendly. But it's also because more and more digital video content is streamed through subscription services such as Netflix or Amazon Prime Video — neither of which supports advertising."