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Video Advertising Surging, Ad Technology Advances Playing a Role

November 20, 2012

Advances in ad technology have helped drive dramatic increases in digital video spending in 2012, according to a report by and Digiday: 97% of surveyed video buyers (agencies, brands, and trading desks) say their video ad budgets have grown 27% in 2012 over 2011 levels, and most expect the momentum to continue into 2013, with video budgets expanding 20% year over year.

Moreover, 22% of video buyers—nearly double the proportion of those polled in 2011—say digital video budgets are now incremental (i.e., digital video has its own budget line-item).

However, most video buyers have tapped other budget sources to fund video ad spending in 2012:

  • 27% of video buyers say cuts in TV spending fueled increases in online video campaigns in 2012, though a greater proportion (34%) said TV gave way to video in 2011.
  • 30% of video buyers say cuts in print spend fueled increases in video, compared with 36% who said so in 2011.
  • Cable budgets were tapped far less in 2012, at 13%, compared with 23% in 2011.
  • 37% of buyers say they tapped display ads to fund video in 2012, vs. 33% in 2011.

Below, additional findings from Q4 2012 State of the Industry Survey on Digital Video Advertising, issued by and Digiday.

More Agencies Planning Video and TV Together

The proportion of agencies that are planing TV and video together has reached 58%, up 10 percentage points from the 48% reported six months earlier.

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