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Digital Video Advertisers Up Budgets, Shift Spend From Display and TV

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As online video becomes a part of the marketing plans of a growing cross-section of advertisers, 72% of video buyers' budgets increased in the past year, according to the 1Q13 analysis of the State of the Video Industry study from Digiday and

Moreover, nearly half of those who buy online video advertising (48%) have added mobile video to their marketing arsenal, the study found.

The average spending increase of those whose video budgets rose was 53%, compared with just 20% the previous year—a doubling of the average budget hike—according to the Q1 analysis.

Among other key findings:

  • Of those whose video budgets did increase, 39% of buyers shifted spending from TV budgets to fund the increased spending, compared with just 27% the previous year.
  • Even more buyers—41%—shifted money from display advertising to fund increases in online video.
  • The average amount of TV spending shifted to online video was 11%.

Below, additional findings from the 1Q13 State of the Video Industry Survey.

Buyers continue to see their video campaigns as much more aligned with TV advertising than display advertising:

Accordingly, the cannibalization of display may proceed even more rapidly, Digiday and said.

Most video buyers now say they see online video as an essential complement to television:

Participation in TV upfronts as a place from which to purchase online video reversed the prior-year, Q1 decline, but still accounts for just 31% of video buyers purchase online video:

Though buyers who participated in the survey hail predominantly from the online side of the house, the gulf between the digital group and the "traditional" TV group, vis-à-vis video buys, is nevertheless still striking:

  • 73% of buyers said the digital group buys online video in their organizations.
  • 21% said "cross-media."
  • 6% said the TV group.

About the data: Digiday polled its opted-in base of digital media and marketing pros for their impressions of changes in online video buying and selling; 759 survey respondents took part between March 12 and 22.

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Vahe Habeshian is the director of publications at MarketingProfs and a long-time editor. Reach him via

Twitter: @habesh

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