IAB Video Advertising Spend Report

2019 Digital Content NewFronts

April, 2019

Commissioned
Partner:
2019 Digital Content NewFronts
Contents

3 Executive Summary NEW FOR 2019

4 Methodology IAB is committed to reporting and analyzing how the
5 Key Highlights DTC Brand Economy is impacting the industry
overall—from innovations to go-to-market strategies,
8 Digital Video from product delivery to ad delivery, from customer
15 Original Digital Video acquisition to audience targeting and optimization,
from revenue to media measurement, and more.
23 Advanced TV Video
29 Programmatic Video As part of that commitment, this report includes a
breakout of Direct to Consumer Brands (note:
32 Direct to Consumer Brands direct-to-consumer brands include DTC Brands—
39 Video Advertising Trends i.e., brands that are digitally native and follow the
stack-your-own supply chain business model^).
47 Impact of the NewFronts
52 Appendix For more information on DTC Brands please visit:
https://www.iab.com/direct-brand-economy/

2
Digital Video Ad Spend: Executive Summary
Ad spend in Digital Video continues to accelerate: Marketers report an increase for digital video budgets by 25% y/y

And the growth is occurring in all categories—with Media & Entertainment reported at +75% and Fashion/Apparel at +45% since 2018

Areas driving spend increases:

• Original Digital Video content— ODV now averages $9.3M (up 31% y/y); although advertisers consider ODV “essential”,
the spend on this content type is still challenged by “quality of content”

• Advanced TV— Nearly 60% of advertisers report that they will increase their budgets for ATV this year, primarily because they
find OTT to be beneficial in delivering tough to reach audiences

• Mobile and Desktop have reached parity in spending, with nearly two-thirds of the total digital video spend allocated
evenly across the two devices

• Programmatic— Growth in digital video programmatic spending is expected to rise +4% year/year, now reaching 53% overall

• This year’s report also includes spend among direct to consumer marketers (DTC). While this is only 17% of the total sample size for this
report, we can see, directionally, that DTC marketers expect to allocate more than 50% of their digital spend on digital video advertising (a
+50% y/y increase)

Note: NewFronts presenters have a clear advantage capturing advertisers' spend. Buyers expect to allocate 43% of their digital video
budgets at this time.
3
Methodology
350 Online Interviews Conducted

Survey Fielded: February 18 - March 1 2019

Total Sample: Marketer and Agency decision-makers in the following sectors:

Automotive, CPG, Fashion & Apparel, Finance, Home Furnishings Media & Entertainment, Retail, Telecommunications

Note: Sample has changed from previous IAB Video Ad Spend reports with the inclusion of Direct to Consumer (DTC) marketers
New for 2019: Direct to Consumer Marketers are now included and comprise 17% of the total sample.
DTC data should be used directionally only.
Also new this year, sample now includes Fashion & Apparel, Media & Entertainment and Home Furnishings
advertising decision makers
Note: Data falling below the stable threshold are noted for directional purposes and to be used directionally only

Qualification: Involved in Digital Video Advertising Decision-Making (categories as per above); $1M+ Total Annual Ad Spend;
must have at least a modest understanding of the Digital Content NewFronts

Throughout the report ‘Original Digital Video Content’ refers to programming (not advertising) that is professionally produced specifically
for digital/online consumption and is ad supported. For additional Taxonomy, please refer to the last page of this presentation.
4
Key Highlights

Digital Video Growth

• Advertisers will spend 25% more on digital video than they did last year
• Nearly 3 in 4 buyers are planning to increase their digital video ad spend in next 12 months
• Nearly two-thirds of digital budgets are allocated to video—with Mobile and Desktop video evenly allocated

DTC Brand Trends

• DTC Brand ad buyers expect to spend more on their brand’s digital video advertising, increasing their investment
at higher pace than Incumbent marketers, an increase of more than 50% from last year
• 78% of DTC Brands plan to increase their ad spend on digital video in the next 12 months
• DTC Brands are deeply invested in digital video and are much more likely to increase their Advanced TV and
OTT spend
• Original Digital Video spending by DTC brands is expected to substantially increase in 2019
• DTC Brand advertisers are more likely than Incumbent brands to report the Digital Content NewFronts as very
influential on their ad spend decisions

NOTE: For definitions, please see Taxonomy page in the Appendix of this deck
Key Highlights

Original Digital Video (ODV) Spending & Trends

• Continued growth: Year after year, Advertisers continue to increase their spending on Original Digital Video. This year
is no different with spending growing by 31% from last year.
• DTC marketers report that 2019 will be a year of significant spend increases in ODV
• Advertisers report that content quality is the top differentiator when identifying ODV partners

Digital Content NewFronts: Impact and Importance

• The NewFronts have a substantial influence on Original Digital Video advertising spend decisions for 84% of
advertisers
• 8 in 10 advertisers agree that their attendance at the 2018 NewFronts resulted in increased spending on Original
Digital Video content
• More than half of attendees report that the NewFronts resulted in greater spending throughout the year
• 43% of Advertisers’ ODV budgets will be allocated at the NewFronts. NewFronts presenters have a clear advantage
capturing advertisers' spend.

6
NOTE: For definitions, please see Taxonomy page in the Appendix of this deck
Digital Advertising Trends

Native Advertising continues to grow with just over half of Advertisers reporting an increase in their spend in 2018 compared to 2017

Social Media is having a significant effect on Advertisers’ attitudes regarding budget allocation: 7 in 10 advertisers currently use
influencers in their digital video advertising; another 9% plan to in the next year
• The new ad formats advertisers plan to increase their use of include Vertical Video Ads*, Stories**, and Shoppable Video Ads***

Advanced TV spend expected to grow significantly

• 59% of buyers plan to increase their Advanced TV spend in the next 12 months

OTT spend to increase significantly

• Half of buyers plan to spend more on OTT this year while 44% plan to maintain spend, despite disagreement over the definition of
OTT (half consider OTT to be video on TV screens, half don’t)
• OTT is valued for the ability to deliver hard to reach audiences, followed by ability to better optimize ad campaigns in the future with
relevance. Price, measurement and lack of scale are reported drawbacks

Multi Platform Buying

• More than 8 in 10 advertisers agree that a unified multi-platform buying solution (TV + digital video) is important
7

NOTE: For definitions, please see Taxonomy page in the Appendix of this deck
Digital Video
Advertisers will spend ~25% more on digital video advertising in 2019

Average Dollar Amount Spent on Digital/Mobile Video Advertising—3 Year Trend (in millions)

= % Change in Digital/Mobile Video Dollar Spend 2018 – 2019

+25%
Increase
2018-2019

$17.8

$14.2

$12.1

2017 2018 2019

9
Q15: Previously you said your company will spend [INSERT RANGE] on digital video (desktop and mobile) in 2019. We’d like to get a bit more detail on that and prior year’s spending.
To the best of your knowledge, what exactly was that spending amount in 2017 and 2018? What do you anticipate spending in 2019?
Base: Total Respondents
Video ad spend has grown across all verticals, particularly in
Media & Entertainment and Fashion
2019 Average Dollar Amount Spend in Millions on Digital/Mobile Advertising by Market Sector

Est. Ad Spend Change since 2018 Est. Ad Spend Change since 2018

TOTAL $17.8 M +25% FURNITURE/

$19.4 M +20%
APPLIANCES

AUTO $18.9 M +15% MEDIA &

ENTERTAINMENT
$15.6 M +75%

FASHION/
$22.5 M +45%
APPAREL RETAIL $23.4 M +24%

FINANCIAL $15.3 M +12%

TELECOM $19.0 M +10%

HOUSEHOLD
$10.5 M +2%
GOODS

10
Q15: Previously you said your company will spend [INSERT RANGE] on digital video (desktop and mobile) in 2019. We’d like to get a bit more detail on that and prior year’s
spending. To the best of your knowledge, what exactly was that spending amount in 2017 and 2018? What do you anticipate spending in 2019?
Base: Total Respondents
Nearly 3 in 4 buyers are planning to increase their digital video ad spend
in next 12 months

Optimism Score
Spending Optimism for Video and TV Advertising Types
% increase minus % decrease

Digital Video
(Desktop and 72% 27% 1% 71%
Mobile)

Advanced TV 59% 38% 3% 56%

OTT/Connected TV 50% 44% 6% 44%

Broadcast/ Cable 21%

40% 41% 19%
TV

Increase Maintain Decrease Net Optimism

(Increase Minus
Decrease)

11
Q10: In the next 12 months, would you expect the amount of [your company’s/your clients’] spend on the following types of advertising to increase, stay the same or decrease?
Base: Involved in Media Type
Nearly two-thirds of digital budgets are allocated to video—with Mobile
and Desktop video reaching parity
Digital Spend Allocation: Video vs. Other Non-Video—3 Year Trend; Average Percent

61% 60% 62%

2017 to Video 2018 to Video 2019 to Video

Other Other Other

Mobile Mobile Mobile
7% Desktop Desktop
7% Desktop 8%
Video Video
Video
31% 31%
Other 33%
Digital Other Other
32% Digital Digital
33% 31%
Mobile Mobile Mobile
Video Video Video
28% 29% 31%

Marketer Marketer

Desktop Video Mobile Video Other Digital Other Mobile

12
Q25: Thinking about your overall digital ad spend, for [your company’s/your client’s] biggest or most important product or service in the [MARKET SECTOR] market sector, what share of
spending was allocated to each of the following advertising formats in 2017 and 2018? What share do you anticipate allocating to each in 2019?
Base: Respondents Involved in Digital Video and Digital Display
Digital Video Content: Buyers are allocating more than 75% of their spend
outside of social space

Average Percent Digital Video Budget Allocations to Each Channel

13%
22%
Music Video Sites
Original Digital Video Sites
14%
User Generated Content
News Sites
TV Shows Online
Social Media Video
18%
14%

14%

13
Q30: Imagine that the digital video (desktop and mobile) advertising budget for [your company’s/your client’s] biggest or most important product or service in the [MARKET SECTOR]
market sector is a pie and each of these types of digital /mobile video advertising is a slice. What share do you anticipate allocating to each slice in 2019?
Base: Total Respondents
Video Ad Formats: Digital video budgets are evenly distributed across
video ad formats

Average Percent Allocation to Each Digital Video Allocations to Video Ad Format

22%
28%

23%

26%

14

Q35: What percent of your digital video (desktop and mobile) budget for [your company’s/your client’s] biggest or most important product or service in the [MARKET SECTOR] market
sector is spent on:
Base: Total Respondents
Original Digital Video

Commissioned partner:
Average annual spend per advertiser on original digital video (ODV) up
31% from last year

Average Dollar Amount Spent on Original Digital Video - 3 Year Trend (in millions)
=% Change in Digital/Mobile Video Dollar Spend 2018 – 2019

+31%
Increase
$9.3
2018-2019

$7.1

$5.8

2017 2018 2019

Q15: Previously you said your company will spend [INSERT RANGE] on digital video (desktop and mobile) in 2019. We’d like to get a bit more detail on that and prior year’s spending.
To the best of your knowledge, what exactly was that spending amount in 2017 and 2018? What do you anticipate spending in 2019? 16

Q85: What portion of your total digital video (desktop and mobile) advertising budget for [your company’s/your client’s] biggest most important product or service in the [MARKET
SECTOR] market sector was spent advertising on each type of content in 2017 and 2018? And what do you anticipate those shares will be in 2019?
Base: Total Respondents
ODV has gained a small incremental share of overall digital video budgets

Average Percent of Digital Video Budget Allocated to Original Digital Video vs. Other Video—3 Year Trend

52% 50% 48%

Other Digital
Video
Content

Original
Digital Video 48% 50% 52%
Content

2017 2018 2019

17
Q85: What portion of your total digital video (desktop and mobile) advertising budget for [your company’s/your client’s] biggest most important product or service in the [MARKET SECTOR]
market sector was spent advertising on each type of content in 2017 and 2018? And what do you anticipate those shares will be in 2019?
Base: Total Respondents
Quality of content is the most important criteria when choosing between
ODV media brands/publishers
Most Important Selection Criteria When Deciding Between Brands; Respondents Who Allocated Spending at the 2018 NewFronts

Quality of content 54%

Ability to target 45%

Scale/Reach 40%

Price 40%

Efficiency 39%

Ability to achieve campaign KPIs 37%

Brand safety/Quality of environment 36%

Ease of buying 35%

Access to content studio and custom solutions 33%

Opportunity for native advertising and brand integrations 32%

Relationship with publisher 27%

18
Q130: Thinking about your digital video spending on original digital video with media brands/publishers that participate in the NewFronts, please select the most important criteria you
consider when deciding on which media brand(s)/publishers to advertise with.
Base: Respondents Who Allocated to Spending at the 2018 Digital Content NewFronts
Quality of content is also the top obstacle preventing increased spend on
ODV advertising
Biggest Obstacles to Spending More on ODV Advertising

Quality of content 44%

Reach/Scale 38%

Challenges around audience targeting and reach 36%

Price 35%

Brand safety concerns 35%

Audience and campaign measurement 34%

ROI vs. other media 33%

Lack of promotion of the video content to audiences 30%

Complexity of executing a buy 26%

Video ad unit lengths 23%

No Obstacles 4%

19
Q145: What do you view as the biggest obstacles to spending more on original digital video advertising (i.e. the type of video content presented at the NewFronts)?
Base: Total Respondents
ODV’s role in Advertiser’s media plans

Agree Somewhat/Completely

89% agree:
My investment in original digital
video programming will grow and 89% agree:
make up a larger share of my Advertising on original digital video
advertising. programming is an essential part of
my company’s/my client’s media
buy.

87% agree:
Original digital video advertising is
as important as TV advertising for
my media plan.

20
Top 2 box: Q135: To what extent do you agree with each of these statements about original digital video advertising?
Base: Total Respondents
ODV praised for it’s ability to: allow for more prominent placement; target on CPA;
provide more effective custom brand integrations

Sorted by Agree Somewhat/Completely

Advertising on original digital video programming

Advertising on original digital video programming
allows for more prominent placing and branding. 49% 42% 91%
allows for more prominent placing and branding.

Original digital video allows me to target on a CPA

Original digital video allows me to target on a CPA 44% 46% 90%
(cost per acquisition/completed view/etc.) basis.
(cost per acquisition/completed view/etc.) basis.

Custom integrations of brands/products in original

Custom integrations of brands/products in 44% 45% 90%
digital video are very effective.
original digital video are very effective.

Advertising
Advertising thatappears
that appearsininoriginal
original digital
digitalvideo
video
reaches an audience that can’t be reached on TV.
43% 46% 89%
reaches an audience that can’t be reached on TV.

Original digital video offers a less cluttered advertising

ODV offers a environment.
less cluttered ad environment. 42% 46% 87%

Original digital
ODV video advertising
advertising offersaasafe-haven
offers safe-haven
against fraud and unsafe content. 41% 43% 84%
against fraud and unsafe content.

Agree Completely Agree Somewhat

21

Q135: To what extent do you agree with each of these statements about original digital video advertising?
Base: Total Respondents
Advertisers use ODV primarily to achieve top and mid-funnel objectives

Original Digital Video Across the Funnel

Top Funnel
41%

Full
Mid Funnel
Funnel
44%
30%

Lower Funnel
10%

22

Q140: For which types of campaigns would you include original digital video advertising on the media plan?
Base: Total Respondents
Advanced TV
Includes Over-the-Top Video (OTT ): Addressable Video ATV

Commissioned partner:
59% of ad buyers plan to increase their Advanced TV spend in the next
12 months

Advanced TV^^ Ad Spend Plans

in next 12 mos.

Decrease
3%

^^Advanced TV:
Any TV content that is delivered
outside of traditional linear
television model; encompasses
Stay the Same both data-enabled and
38% addressable TV advertising
Increase (i.e, Addressable Linear TV,
59% Connected TV, Over-the-Top
TV (OTT))

24

Q10: In the next 12 months, would you expect the amount of [your company’s/your clients’] spend on the following types of advertising to increase, stay the same or decrease?
Base: Involved in Media Type
Half of all ad buyers plan to increase their OTT ad spend in the next
12 months
OTT Ad Spend Plans
in next 12 mos.

Decrease
6%

OTT: For the purposes of this

survey, OTT refers to
television content delivered
through the Internet and
Increase viewed on the TV screen either
Stay the Same 50% via Smart TV or external
44% device, such as Roku,
AppleTV or gaming console

Q10: In the next 12 months, would you expect the amount of [your company’s/your clients’] spend on the following types of advertising to increase, stay the same or decrease? (For the 25
purposes of this survey, we’re defining OTT as television content delivered through the Internet and viewed on the TV screen either via Smart TV or external device, such as Roku, AppleTV
or gaming console).
Base: Involved in Media Type
Advertisers are split as to how to define OTT: 50% say “video specifically on
a TV screen” vs 48% “video appearing on any screen”

Definition of OTT

Other
2%

OTT: For the purposes of this

Streaming video Streaming video survey, OTT refers to
that appears on that appears on television content delivered
any screen (TV, a TV screen through the Internet and
mobile, other than live viewed on the TV screen either
desktop) other TV
via Smart TV or external
than live TV 48%
device, such as Roku,
50% AppleTV or gaming console

26

Q175: Which of the following best describes how your company defines OTT (over-the-top) video for ad buying purposes?
Base: Total Respondents
Audience reach and campaign optimization are top benefits of OTT
advertising

Benefits of OTT Advertising, Ranked Top 3

Delivers hard to reach audiences 44%

Ability to optimize future campaigns based on
backend results 43%

Increased ad relevance 35%

Incremental target audience reach 35%

Greater accountability and measurement 34%

Ability to manage ad frequency 32%

Better ROAS/ROI 32%

Eliminates waste 26%

Improved CPM efficiency 17%

No benefits 1%

27

Q180: Please rank the top 3 benefits of OTT advertising.

Base: Total Respondents
Factors inhibiting advertiser investment in OTT are varied;
cost is the primary obstacle

Factors Inhibiting OTT Advertising Investment

Cost/Price 33%

Inadequate metrics/campaign measurement 27%

Lack of large scale audience 26%

Difficulty with data integration 24%

Poor performance/ROI 24%

Lack of incremental reach/overlap with traditional TV buys 22%

Confusion about how audience based TV advertising
works/its benefits 22%

Lack of agency demand 21%

Lack of advertiser demand 21%

None 15%

28

Q185: What are the top 3 factors inhibiting greater investment into OTT advertising?
Base: Total Respondents
Programmatic Video
Marketers use a mix of methods to buy their video advertising, relying on
both external agencies and their internal teams

How Marketers Buy Digital Video

External media buying agency 70%

Internal media buying team 68%

Programmatic company 55%

Programmatic in-house 28%

30

Q65: Which of the following do you use to buy video advertising?

Base: Marketers
Advertisers plan to allocate half of their digital video spend on programmatic
buys in 2019
Average Percent Share of Digital Video Budgets Spent Programmatically —3 Year Trend
= % Change in Digital/Mobile Video Dollar Spend 2018 – 2019

+4%
Increase
2018-2019

51% 53%
48%

2017 2018 2019

31
Q70a/b/c: What share of your company’s digital video (desktop and mobile) ad spending, if any, was bought via programmatic companies (i.e. DSPs, SSPs, RTB) in 2017 and 2018?
What share do you anticipate allocating to programmatic in 2019?
Base: Total Respondents
DTC Brands
^For more information on the DTC Brand Economy, please go to
https://www.iab.com/direct-brand-economy/
78% of Direct-to-Consumer (DTC) marketers plan to spend more on digital video in the
next 12 months (vs. incumbents); DTCs also more likely to increase spend across types

0% 0%
Directional
2% 5% 2% 4%
11%
22% 23%
29% 28%
36% 36%
47%
49%

45%
Decrease
Stay the Same
78% Increase
71% 70%
62% 60%
48%
40%
33%

DTC Brand Incumbent DTC Brand Incumbent DTC Brand Incumbent DTC Brand Incumbent
Brand Brand Brand Brand

Digital Video Advanced TV OTT/Connected TV Broadcast/Cable TV

33

Q10: In the next 12 months, would you expect the amount of [your company’s/your clients’] spend on the following types of advertising to increase, stay the same or decrease?
Base: Involved in Media Type (Sample of DTC with min $1M in Ad Spend)
DTC brands expect a 50%y/y spend increase on digital video
advertising—and plan to allocate more than 50% of that spend at the NewFronts

Share of Digital Video Dollars Tied to the NewFronts by Marketer Type, Average Percent Directional

+8%
Increase
2018-2019
53% 53%
49%

2017 2018 2019

DTC Brand

34
Q45a/b//c: What share of your digital video/mobile video advertising dollars was allocated as a result of the Digital Content NewFronts two years ago (Spring 2017)? Last year (Spring
2018), and this year (Spring 2019)?
Base: Total Respondents (Sample of DTC with min $1M in Ad Spend)
DTC brands expect to increase spend on ODV by 59% y/y, and plan to
allocate 41% of their original digital video advertising at the NewFronts

Average Percent of Original Digital Video Dollars Tied to NewFronts - 3 Year Trend (in millions)
Directional
= % Change in Digital/Mobile Video Dollar Spend 2018 – 2019

+11%
87% agree: Increase
2018-2019
Original digital video 41%
is very effective for 37% 37%
advertising direct to
the consumer.

2017 2018 2019

DTC Brand

35
Q95a/b//c: What share of the dollars for advertising spending on professionally produced original digital video programming/content was committed as a result of the Digital Content
NewFronts two years ago (Spring 2017)? A year ago (Spring 2018)? What share do you anticipate allocating to each this year (Spring 2019)?
Base: Total Respondents (Sample of DTC with min $1M in Ad Spend)
Why are DTC marketers allocating more of their budgets at the 2018 Digital Content
NewFronts? In Their Own Words…

“My company is shifting the way it

allocates advertising budget, and the
Digital Content NewFronts has proven to
be helpful in determining what strategy to
adopt moving forward.This year, we have
saved budget to allocate based on best
practices shared at that time.” “We are becoming better
- Marketer, C-Level, CPG, DTC
acquainted and educated about
the process and players.”
- Marketer, C-Level, Fashion/Apparel,
DTC

“Our business depends on this type of advertising, it has a high ROI.”

- Marketer, Director, CPG, DTC

36

Q50 You anticipate allocating more on digital video (desktop and mobile video) advertising during the 2019 Digital Content NewFronts than you allocated as a result of the 2018 Digital Content NewFronts.
Would you explain why?
Base: Plan on Allocating More as a Result of NewFronts; (Sample of DTC with min $1M in Ad Spend)
DTC Brands are more likely to spend with publishers; they are ahead of incumbents in
their commitment to allocate digital video beyond the leading social site

Average Percent Digital Video Allocation to Each Brand

(Sorted by Total)
Directional

17%
22% DTC spending on
19% digital video with
18% publishers is on par
with FB for 2019
12%
14%
15%
12%
12%
FEP (i.e. ESPN, MTV, CBS, Fox, etc.)
12%
Publisher Sites/Apps (i.e. CNS/Conde, 17%
The Dodo, Oath, etc.) 10%
8%
12%
DTC Brand
Incumbent Brand

37

Q40: What % of your digital video (desktop and mobile video) for your [company’s/client’s] biggest or most important product or service in the [ASSIGNED MARKET SECTOR] is
spent with: ?
Base: Total Respondents; Sample of DTC with min $1M in Ad Spend
How Marketers Buy Digital Video: DTC vs. Incumbent Brands

Directional
66%
External media buying agency
72%

58%
Internal media buying team
72%

49%
Programmatic company
57%

29%
Programmatic in-house
27%

DTC Brand Incumbent Brand

38

Q65: Which of the following do you use to buy video advertising?

Base: Marketers (Sample of DTC with min $1M in Ad Spend)
Video Advertising
Trends
NewFronts particularly impacts the ODV spend of Automotive,
Furniture/Appliances and Fashion/Apparel advertisers
2019 Average Anticipated Commitment to Original Digital Video as a Result of the NewFronts by Market Sector

Est. Ad Spend Change since 2018 Est. Ad

Change since 2018
Spend

TOTAL 41% 12% FURNITURE/

46% 13%
APPLIANCES

AUTO 49% 25% MEDIA &

ENTERTAINMENT 43% 16%

FASHION/
45% 14%
APPAREL RETAIL 40% -7%

FINANCIAL 29% 11%

TELECOM 42% 9%

HOUSEHOLD
37% 13%
GOODS
40
Q95a/b//c: What share of the dollars for advertising spending on professionally produced original digital video programming/content was committed as a result of the Digital Content
NewFronts two years ago (Spring 2017)? A year ago (Spring 2018)? What share do you anticipate allocating to each this year (Spring 2019)?
Base: Total Respondents
Advertisers have embraced new video ad formats in the past year and plan
to significantly increase their use of stories and shoppable ads in 2019

Video Ad Formats Purchased in 2018 and 2019

57%
6 second video ads
53%
55%
Vertical video ads
48%
Stories (i.e. a brand-created longer form video that 51%
disappears after 24 hrs) 42%
2019
Shoppable video ads (i.e. an ad that allows users to 49% 2018
scroll through product selections/buy within the ad itself) 39%
Picture in Picture/Overlay (i.e. Brand overlays in live 49%
streamed content) 48%
48%
Interactive video ads
48%
41%
AR
36%

41

Q160: Which of the following video ad formats have you used in campaigns in 2018 and which do you plan to use in 2019?
Base: Total Respondents
Half of advertisers increased their advertising on native video in the past year

Native Video Advertising in Original Digital Advertising - 2017 vs. 2018

Less
2%

NA
2%

Same More
44% 52%

42
Q120: Did you spend more/same/less on native video advertising (e.g., brand integrations/product placement within a video, paid video ad with FTC disclosure), etc.) in original digital
advertising in 2018 compared to 2017?
Base: Allocated Advertising on ODV (the type showcased at NewFronts) in 2018
7 in 10 Advertisers currently use influencers in their digital video advertising and 4 in 10
plan to increase their spending with influencers in 2019

Digital Video With Influencers

Advertise in Digital Video with Influencers Digital Video Advertising with Influencers Spend Optimism

Spend Less
3%
No, and don't
plan to
21%
Spend More
No, but plan to 43%
in the next 12
Spend Same
months Yes
9% 54%
70%

51% of DTC
brands plan to
spend more with
Influencers

Q150: Do you advertise in digital video (desktop and mobile video) with influencers (celebrity and/or paid social media product/brand endorsers)? 43
Base: Total Respondents
Q155: Do you plan to spend more, same or less on digital video (desktop and mobile video) advertising with influencers in 2019?
Base: Respondents who Advertise in Digital Video (Desktop and Mobile video) with Influencers
More than 8 in 10 Advertisers agree a unified multi-platform buying
solution (TV + digital video) is important

Importance of a Unified Multi-Platform Buying Solution (TV + Digital Video)

Extremely/Very important 83%

Very important 40%

Somewhat Important 43%

Q170: Hardware devices, such as TV’s DVD/Blu-ray players, set-top boxes, and video game consoles are becoming increasingly “internet ready” (include the ability to watch digital
44
“internet” video directly on your TV).
With the above statement in mind, how important is it that the publishers/ad networks/DSPs that you work with offer a multi-platform solution that includes both Incumbent TV and digital
video (desktop and mobile video) under one media buy?
Base: Total Respondents
“One size fits all” is over. Roughly one third of buyers say video creative
is developed for cross screen purposes

How Creative for a Digital/Mobile Video Campaign Is Typically Developed

Creative is developed which is intended

to be used for cross screen purposes 31%
(TV/mobile/desktop)

A creative execution is developed

15%
primarily intended for TV

45

Q55: Which best describes how the creative for a digital video (desktop and mobile) campaign is typically developed?
Base: Total Respondents
Advertisers are embracing industry trends, e.g., recognizing the benefits of DTC
advertising and the potential opportunity of investing more in programmatic CTV

Sorted by Agree Somewhat/Completely

Directtotoconsumer
Direct consumer advertising
advertising offers
offers moremore
data data
with
which to which
track the
43% 50% 93%
with to ad’s
trackimpact.
the ad’s impact.

My
My company planstotoincrease
company plans increase programmatic
programmatic ad
spend on connected TV thisTV
year. 46% 44% 90%
ad spend on connected this year.

My company
My company has spent
has spent moremore on video
on video advertising
advertising on
on original digital video content that highlights
original digital video content that highlights diversity and
diversity and inclusion in 2018 than in the previous 39% 47% 87%
inclusion in 2018 than in the previous year.
year.

My advertises
My company company advertises almost exclusively
almost exclusively on
on digital.
digital. 36% 39% 75%

Agree Completely Agree Somewhat

46

Q165: How much do you agree with the following statements?

Base: Total Respondents
Impact of the
NewFronts on Digital
Video Spending
41% of Advertisers’ original digital video budgets will be allocated at
the NewFronts
Average Percent of Original Digital Video Dollars Tied to NewFronts - 3 Year Trend (in millions)
= % Change in Digital/Mobile Video Dollar Spend 2018 – 2019

+11%
Increase
2018-2019

37%
41%
6
35%
Average # of Media
Brands
Advertised with as a
Results of the 2018
NewFronts

2017 2018 2019

Q95a/b//c: What share of the dollars for advertising spending on professionally produced original digital video programming/content was committed as a result of the Digital Content 48
NewFronts two years ago (Spring 2017)? A year ago (Spring 2018)? What share do you anticipate allocating to each this year (Spring 2019)?
Base: Total Respondents
Q100: How many publishers that offer Original Digital Programming did you advertise with as a result of attending the 2018 Digital Content NewFronts? Base: Attended 2018 NewFronts
84% of Advertisers say attending the NewFronts influences their
advertising spend
NewFronts Influence on Advertising on Original Digital
NewFronts Influence on Ad Spend Programming Content

Not that/Not “More understanding and familiarity led to increased usage..”

at all (Agency, VP+, Home Furnishings)
Influential
Neutral 4%
12% “Identified new publishers and networked with other agencies doing
similar advertising.”
(Marketer, C-Level, CPG, Direct to Consumer)

Very “Provided more guidance on what brand safe inventory to run on.”
Influential
(Agency, Director, CPG)
Somewhat 44%
Influential
40% “Waning ratings and rising prices in the TV sphere are causing
many advertisers to look online for a more fruitful and cost effective
market; Digital Content NewFronts provides such a platform.”
(Agency, VP+, Retail)

Also of note: 52% of DTC brands say the NewFronts is very influential
Q105: How did the 2018 Digital Content NewFronts affect your advertising on original digital programming content? 49
Base: Respondents who Attended 2018 NewFronts
Q110: In your opinion, how much influence does attending the NewFronts have in how/where you spend advertising dollars?
Base: Respondents who Attended Any Digital Content NewFronts
8 in 10 Advertisers increased their ODV budget as a result of attending the
2018 NewFronts
55% spent more than planned over the year. 46% spent more than planned at the NewFronts

Impact of 2018 Digital Content NewFronts on ODV Advertising

Budget change/increase (Net) 81%

During the course of the year I spent more than I had

planned to due to the NewFronts. 55%

I committed more than I had planned to at the NewFronts. 46%

The 2018 NewFronts encouraged me to increase my

budget for advertising on original digital programming 22%
content in 2019.

Asked for More Information/Did research (Net) 61%

I asked my agency for more information about advertising

on original digital programming content. 57%

I did more research into original digital programming

content. 39%
50

Q115: In which of these ways did the 2018 Digital Content NewFronts affect your advertising on original digital programming content?
Base: Respondents who Participated in 2018 Digital Content NewFronts
Reasons for planning to allocate more on digital video during the 2019
Digital Content NewFronts

We are becoming better acquainted and Generate more leads. Boost revenue.
educated about the process and players. Increase engagement. Appear on top sites.
Reach target audiences.
- Marketer, C-Level, Fashion/Apparel, DTC
- Agency, Director, Home Furnishings

My company is shifting the way it allocates

advertising budget, and the Digital Content More premium content being presented in the
NewFronts has proven to be helpful in determining NewFronts.
what strategy to adopt moving forward. This year,
we have saved budget to allocate based on best - Agency, Director, CPG

practices shared at that time.

- Marketer, C-Level, CPG, DTC

More and more consumers are turning to

mobile video for news, information and
entertainment, and we need to be where they
Because it is a great way to reach a are. Fewer and fewer are getting their
larger target audience. information from TV, radio or print.
- Marketer, Director, Media & Entertainment - Marketer, Director, Media & Entertainment

See accompanying file of open ends for full listing of verbatim responses. 51

Q50: You anticipate allocating more on digital video (desktop and mobile) advertising during the 2019 Digital Content NewFronts than you allocated as a result of the 2018 Digital Content
NewFronts. Would you explain why?
Base: Respondents who Anticipate Allocating More During the 2019 Digital Content NewFronts
Appendix
Average Percent Digital Video Allocation to Each Brand by Market Sector

Fashion/ Consumer Furniture/ Media &

Automotive Financial Retail Telecom
Apparel Goods Appliances Entertainment

21% 16% 20% 24% 18% 19% 17% 20%

12% 12% 11% 13% 14% 17% 15% 12%

10% 11% 6% 11% 9% 9% 11% 16%

12% 18% 13% 14% 11% 13% 11% 13%

17% 16% 20% 15% 24% 17% 24% 16%

FEP 14% 11% 16% 12% 11% 13% 10% 12%

Publisher
13% 16% 14% 11% 14% 12% 8% 10%
Sites/Apps

53

Q40: What % of your digital video (desktop and mobile video) for your [company’s/client’s] biggest or most important product or service in the [ASSIGNED MARKET SECTOR] is
spent with: ?
Base: Total Respondents
57% of increased digital video budget is from new expanded budget

Percent Indicating Shift of Funds Away From Advertising Types (Multiple Response)

72% Shifting Funds Away

from Any TV (net)
Will Increase Spending on
71%
Digital Video Advertising in
the Next 12 Months

57% 47% 41% 35% 35% 26%

Overall Expansion Broadcast TV Cable TV Non-Video Ads Advanced/ Neither Digital

of Budgets Advertising Advertising Online Interactive TV nor TV

Q10: In the next 12 months, would you expect the amount of [your company’s/your clients’] spend on the following types of advertising to increase, stay the same or decrease?
Base: Involved in Media Type 54
Q20: You mentioned that your spending on digital video (desktop and mobile) advertising will increase in 2019 compared to 2018. Where will the funding come from for the increasing digital
video advertising spend?
Base: Respondents Whose Digital Video Advertising Will Increase in 2019
Digital video allocation ticked up over past 2 years

Spend Allocation to Video and TV Advertising Types, Average Percent

2017 2018 2019

OTT/Connected
TV OTT/Connected OTT/Connected Digital Video
16% TV… TV… 3%
Digital Digital Video Increase
Digital Video Video 2018-2019
Advanced 36%
Advanced TV 34% 35%
18% TV Advanced TV
19% 19%

Broadcast/ Broadcast/ Broadcast/

Cable TV Cable TV Cable TV
32% 30% 28%

Digital Video Broadcast/ Cable TV Advanced TV OTT/Connected TV

55
Q5: Imagine that the TV and digital video/mobile video advertising budget for [your company’s/your client’s] biggest or most important product or service in the [MARKET SECTOR] market
is a pie and each of these types of advertising is a slice. What share of spending was allocated to each in 2017 and 2018? What share do you anticipate allocating to each slice in 2019?
Base: Involved in Both TV and Digital Video/Mobile Video
Ad supported video, including episodic series, best describes ODV

Characteristics Best Describing Original Digital Video (ODV)

Episodic Series of ad-supported videos

that is specifically made for digital 31%
distribution (i.e. not traditional TV)

Any ad-supported video, whether

episodic or not (i.e. UGC, Movies, FEPs, 30%
Music Videos)

Professional quality video 27%

Influencer videos 11%

56

Q80: Which of the following characteristics do you feel best describe Original Digital Video (ODV)?
Base: Total Respondents
Overall expansion of advertising budgets will be the primary source of
funding for increased original digital video spend

Percent Indicating Shift of Funds Away From Advertising Types (Multiple Response)

Shifting Funds Away

From TV (net)
+31% Total: 61%

Projected Increase in ODV

Spending 2018 - 2019

53% 35% 29% 27% 24% 23% 12%

Overall Cable TV Broadcast TV Other Online Advanced/ Other Other Digital

Expansion of Advertising Advertising (Non-Video) Interactive TV (Non-Digital/ Video
Budgets Advertising Non-TV) Media Advertising
Types

57
Q90: You mentioned that your advertising spending on professionally produced original digital video programming/content will increase in 2019 compared to 2018. Where will the funding
come from for the increasing original digital video programming content advertising spend?
Base: Respondents Whose Original Digital Video Advertising Will Increase in 2019
Spending on ODV advertising increased across all verticals over the
past 2 years
Retail and Fashion/Apparel Advertisers Are the Biggest Spenders on ODV Advertising; Media & Entertainment and Fashion/Apparel are the faster growing sectors
2019 Average Dollar Amount Spend in Millions on Original Digital Video Advertising by Market Sector

Change since 2018 Change since 2018

TOTAL $9.3 M +31% FURNITURE/

$10.4 M +23%
APPLIANCES

AUTO $10.0 M +24% MEDIA &

ENTERTAINMENT
$8.4 M +93%

FASHION/
$12.2 M +60%
APPAREL RETAIL $12.6 M +17%

FINANCIAL $8.3 M +19%

TELECOM $10.5 M +19%

HOUSEHOLD
$4.3 M +2%
GOODS
58
Q15: Previously you said your company will spend [INSERT RANGE] on digital video (desktop and mobile) in 2019. Q85: What portion of your total digital video (desktop and mobile) advertising budget for [your
We’d like to get a bit more detail on that and prior year’s spending. To the best of your knowledge, what exactly was company’s/your client’s] biggest most important product or service in the [MARKET SECTOR]
that spending amount in 2017 and 2018? What do you anticipate spending in 2019? market sector was spent advertising on each type of content in 2017 and 2018? And what do you
Base: Total Respondents anticipate those shares will be in 2019?
Although there is not a majority consensus, Advertisers are more likely to use AVOD to
describe professionally produced ad supported video content

Terms Describing Ad Supported Video Content that Is Professionally Produced for Online

Ad Supported Video on Demand (AVOD) 35%

Ad Supported Video 24%

Original Digital Video (ODV) 23%

Original Digital Series 16%

59

Q75: Which term do you use to describe ad supported video content (not advertising) that is professional produced specifically for digital/online consumption?
Base: Total Respondents
Across all market sectors at least half of digital video buys will be bought
programmatically
Average Percent Share of Digital Video Budgets Spent Programmatically by Market Sector

Change since 2018 Change since 2018

TOTAL 53% 4% FURNITURE/

51% -6%
APPLIANCES

MEDIA &
AUTO 50% 8% ENTERTAIN- 51% 5%
MENT

FASHION/
56% 10%
APPAREL RETAIL 55% 0%

FINANCIAL 54% 7%
TELECOM 54% 8%

HOUSEHOLD
50% 0%
GOODS
60

Q70a/b/c: What share of your company’s digital video (desktop and mobile) ad spending, if any, was bought via programmatic companies (i.e. DSPs, SSPs, RTB) in 2017 and 2018?
What share do you anticipate allocating to programmatic in 2019?
Base: Total Respondents
Nearly 8 in 10 Advertisers will attend the 2019 NewFronts

Digital Content NewFronts Attendance 2017 - 2019

79%

58%

31%

Attended 2017 Attended 2018 Plan to Attend 2019

61

S35b: Which Digital Content NewFronts have you attended/do you plan to attend?
Base: Total Respondents
Advertisers project allocating 46% of digital video ad dollars at the
2019 NewFronts
Share of Digital Video Dollars Tied to the NewFronts, Average Percent
= % Change in Digital Video Dollar Tied to NewFronts 2018 – 2019

+7%
Increase
2018-2019

46%
42% 43%

2017 2018 2019

62
Q45a/b//c: What share of your digital video/mobile video advertising dollars was allocated as a result of the Digital Content NewFronts two years ago (Spring 2017)? Last year
(Spring 2018), and this year (Spring 2019)?
Base: Total Respondents
Automobile and Retail sectors anticipate allocating 50%+ of their DV
budget as a result of NewFronts
Share of Digital Video Dollars Tied to the NewFronts by Market Sector, Average Percent

Change since 2018 Change since 2018

TOTAL 46% 8% FURNITURE/

49% 0%
APPLIANCES

MEDIA &
AUTO 52% 3% ENTERTAIN- 44% 14%
MENT

FASHION/
48% 2%
APPAREL RETAIL 50% 1%

FINANCIAL 41% 12%

TELECOM 49% 16%

HOUSEHOLD
35% 15%
GOODS
63
Q45a/b//c: What share of your digital video/mobile video advertising dollars was allocated as a result of the Digital Content NewFronts two years ago (Spring 2017)? Last year (Spring
2018), and this year (Spring 2019)?
Base: Total Respondents
DTC brands allocate a slightly greater share of their digital video spend
programmatically than Incumbent brands
Average Percent Share of Digital Video Budgets Spent Programmatically by Marketer Type

= % Change in Digital/Mobile Video Dollar Spend 2018 – 2019

+2% +4%
Increase Increase
2018-2019 2018-2019

56% 57%
51% 52%
49% 50%

2017 2018 2019 2017 2018 2019

DTC Brand Incumbent Brand

64

Q70a/b/c: What share of your company’s digital video (desktop and mobile) ad spending, if any, was bought via programmatic companies (i.e. DSPs, SSPs, RTB) in 2017 and 2018? What share do you
anticipate allocating to programmatic in 2019?
Base: Total Respondents
Taxonomy
Original Digital Video Content: Refers to programming (not advertising) that is professionally produced specifically for digital/online
consumption and is ad supported
^ DTC Brands: Brands that are digitally native, sell direct to consumer, and use a stack-your-own supply chain business model
*Vertical Video Ads: Digital video ads that are displayed in portrait mode and shot in portrait and/or landscape mode (9:16 aspect
ratio), rather than the widescreen format (16:9 aspect ratio) normalized by movies and television. Vertical video ads are typically
delivered on mobile devices (which has the optimal aspect ratio to fit and fill the entire screen)
** Stories: Mobile-first, swipeable, brand-created longer form video, vertical video montages initially popularized by Snapchat and
now used by billions of consumers across Instagram, WhatsApp, Snapchat, Facebook, Facebook Messenger and other platforms—
disappears after 24 hours
*** Shoppable ads: Interactive ads designed to connect consumers with products/services/merchants within the ad itself
^^Advanced TV: Any TV content that is delivered outside of traditional linear television model; encompasses both data-enabled and
addressable TV advertising (i.e, Addressable TV, Data Enabled Linear TV, Over-the-Top TV (OTT))
Addressable TV: The ability to deliver different ads to different households watching the same program,
allowing advertisers to focus on ad relevance and impact
Over-the-Top (OTT) TV: Digital Video Content that is transported (streamed) through the internet onto a
connected device (laptop, smartphone, tablet, or Connected TV (CTV))
Additional Related Description:
65
CTV is a television that's connected to the internet (connected TV is one devices through which that OTT
content can be consumed)
Respondent Snap Shot

Profile of Respondents (N=350) Total Market Sectors

Agency 40% Automotive 11%

Marketer (net) 60% Fashion/Apparel 12%

Incumbent brand 43% Financial Services 13%

DTC brand 17% Household Goods 13%

Senior (VP+) job title 54% Furniture/Appliances 18%

Mid (Director) job title 40% Media & Entertainment 12%

Junior job title 7% Retail 11%

Digital video (desktop and mobile) advertisers 100% Telecommunications 11%

TV advertisers 80%

Advanced TV advertisers 72%

Plan to attend 2019 NewFronts 79%

66
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67
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 Thank You

Susan (Sue) Hogan Andy Sippel

sue@iab.com Andy.Sippel@AdvertiserPerceptions.com

68