TV is the likely answer, and the study results bear that out. 31% of brands said they would pull from broadcast TV (up from 19% last year), while 10% said they would draw from their cable budgets (down from 13% last year).
Interestingly, though, the most common response from brands was that video budgets would be incremental: 33% said their spending wouldn’t come at the expense of any other category. That’s up from 26% stating the same last year.
Display remains on the hook this year, too, with 30% of brands saying they’d shift funding from there to online video, relatively unchanged from last year’s 32% anticipating such a shift. But concerns about display cannibalization ramping up seem to not have materialized for the time being.
Print (19%, down from 29% last year) appears to be relatively safe this time around, while direct response (6%, from 3%) and search (5%, from 0%) may see some budget cuts in favor of online video.
Expanding the respondent base to brands and agencies changes the picture significantly. Broadcast budgets are likely to be targeted by 21% this year, significantly fewer than the 31% who responded that way in 2010. By contrast, 11% plan to shift money out of cable, up from 3% in 2010.
Some other striking differences emerge from the expanded sample base: just 3% this year say they will draw from their online display budgets, a dramatic change from 2010′s 26%. Meanwhile, 26% will pull from search (a marked increase from 3%), and a significant 42% will move money out of their out-of-home (OOH) budgets in favor of video (also up from just 3% in 2010).
In tandem, these results suggest that agencies are much more likely than brands to tap into cable, search, and OOH budgets, and much less likely to cannibalize online display. Given that 16% of agencies and brands combined say that video ad spend will be incremental, the results also indicate that agencies are less likely than brands to be giving new dollars to video.
So how about those broadcast budgets – slated to be the target for 21% of brands and agencies? It turns out that last year, a majority 58% of agencies and brands borrowed from their broadcast budgets to fund some video spending. Specifically, 45% said they pulled 1-10% of their broadcast dollars for video, 9% drew 11-20% of the budgets, and 4% more than 20%.
- Three-quarters of brands buy video ad inventory from an ad network this year, up from 61% in 2011. Fewer (68% vs. 78%) are buying directly from a publisher.
- Agencies are as likely to buy video ad inventory direct from a publisher (86%) as they are from an ad network (85%).
- Programmatic buying has grown markedly over the past 2 years. 28% of brands and 34% of agencies are now buying from an exchange, up from 11% and 19%, respectively. Similarly, 21% of brands and 36% of agencies are buying from a DSP, from 11% and 19%, respectively.
About the Data: For two weeks in late September and early October 2013, Adap.tv and Digiday polled its opted-in base of leading digital media and marketing pros for their impressions of changes in online video buying and selling. Owing to the acquisition of Adap.tv by AOL, access included a very large pool of seasoned advertisers, making the survey the most extensive yet with more than 900 participants.
Participants were offered the incentive of full study results and being entered in a drawing to attend a Digiday Summit or their choice of e-tablet (one recipient each). Agency and Trading Desk participants constituted 43 percent of participants (390), followed by 25 percent video publishers (227), 19 percent advertisers (171), and 14 percent Ad Networks, DSPs and SSPs (128).