The amount of money spent on video advertising is on the rise, with 65% of brands surveyed in a new report confirming an increase in budgets compared to this time last year. Marketing agencies are spending up to 83% more on their video advertising campaigns. In the new Q4 State of the Video Industry study from and Digiday, 9 out of 10 brand and agency side participants confirmed that they planned to increase video ad spending even further in 2014, pulling the extra budget from other areas such as offline advertising and broadcast TV advertising.

State Of The Video Industry Report: Main Points

  • 31% of brands said they would pull campaign funds from broadcast TV advertising to invest video advertising, up from 19% last year
  • 10% of brands confirmed that they would divert funds away from cable advertising, down from 13% last year.
  • 30% of participants confirmed that they would consider moving their marketing budget away from display advertising into video advertising.
  • 26% will decrease their search budgets in favour of paid video ads, a significant increase from the previous 3%
  • 43% of brands are purchasing mobile video today, as are 7 out of 10 agencies
  • 70% of marketing agencies and 65% of brands want clearer measurements so they can compare the effectiveness of online, cable and TV advertising.

video ad spending 2013

In 2012, 58% of agencies and brands borrowed from their broadcast budgets to fund at least some video advertising spend. 45% confirmed they had pulled 1-10% of their broadcast dollars for video, 9% drew 11-20% of their available budget, and 4% more than 20%.

video ad budgets

75% of brands confirmed that they will buy their video ad inventory from an ad network, up from 61% in 2011, but there’s a 10% drop in purchasing directly from a publisher with only 68% confirming that this is to be their preferred choice. For agencies, 85% are just as likely to buy from a publisher as they are from a video ad network.

Both agencies (28%) and brands (34%)are more likely to buy from an exchange, with 21% of brands and 36% of agencies confirm they will purchase from a Demand Side Platform.

You can see the full report from Digiday and Adap.TV here: