There's A Major Shift From TV To Digital Video Ad Spending


This is the 10th in the 17-part series “Video Revolution,” which brings you up to speed on innovations in the video advertising industry. “Video Revolution” is brought to you by Innovid. More posts in the series »

Bad news for the TV industry.

After polling 5,000 advertising executives attending the Interactive Advertising Bureau’s Digital Content NewFronts, the IAB found that 75% of U.S. senior executives plan to shift their budgeting from television to digital video ads.

And how will those digital video ads be distributed? According to a Be On survey, 73% of respondents will increase pre-roll ad spending in the next year. Social spending will increase by 53%. eMarketer made the following chart to display the breakdown:

And social media platforms understand that the shift is coming.

Bloomberg reported that Facebook, for example, is planning to charge advertisers between $US1 million and $US2.5 million dollars for 15-second video ads to play in consumers’ news feeds three times in one day.

A 30-second Super Bowl ad is selling for $US4 million.

Facebook COO Sheryl Sandberg has been priming Facebook to be compared to television for a while.

“Every night, 88 million to 100 million people are actively using Facebook during prime-time TV hours in the United States alone,” she said during a call to investors last October.

Other popular companies are seeing an increase in digital video ads as well. Pandora, for example, has seen a recent uptick in video ads.

TV isn’t getting entirely abandoned, but it has some very healthy competition.

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