Digital video ad spend to top $7.46BN in 2015


Details

Michelle Clancy

| 22 October 2015





For the sixth consecutive year, digital video has been growing and shows no signs of stopping.


According to AOL research on the state of the video industry, the US digital video ad spend grew by 42% over the past year to total $7.46 billion in 2015. Within the next four years, that number is expected to nearly double, reaching over $13 billion by 2019.

"For many in the video space, this is a great problem to have," the company said. "But with more dollars piling in and the unprecedented and explosive growth of mobile, new opportunities are emerging quickly."

For one, marketers are reprioritising traditional advertising budgets and adding dollars to digital video. TV budget growth is stagnating, with a sizable portion of those dollars being reallocated to video advertising.

Mobile and video are converging, posing new opportunities and challenges to the industry. Overall mobile video advertising spend increased 18% since 2014, but marketers say measurement remains a key pain point.

Programmatic is ubiquitous – and for the first time, the sell side is catching up to the buy side. AOL found that 91% of brands and agencies are buying video programmatically and continue to make larger investments into the technology year-over-year. 88% of publishers claim they sell their video inventory programmatically, a noticeable 37% leap from 2014.

Programmatic TV is also gaining popularity as audience fragmentation hits an inflection point. Over the next year, 41% of television buyers – a three-fold increase since 2014 – plan to rely on programmatic technology to make more strategic TV investments.

And finally, branded video is taking hold. Advertisers and agencies devote over 30% of their overall video budgets to branded video content. Brands intend to grow these investments 10% in the next year.