How to Make Sense of Digital Video Content Opportunities - eMarketer
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How to Make Sense of Digital Video Content Opportunities

While spending on TV is decreasing, it’s still a major expenditure for brands

Sorting through the myriad options for advertising opportunities can seem overwhelming. As brands shift budgets from linear TV to digital video, they are faced with decisions about what platforms work best, what publishers to partner with and how to assess campaign success in a fragmented, evolving media landscape, as explored in a new eMarketer report, “Digital Video for Brands in the US: Challenges to Consider and Questions to Ask Ahead of the NewFronts.”

Level of Understanding of the Digital NewFronts Among US Buy-Side Professionals, by Industry, April 2015 (% of respondents)

The Digital Content NewFronts, an annual event established in 2007 as a way to present what was possible with a then nascent form of advertising, creates as much confusion as opportunity.

For attendees, it is a showcase for the latest developments in a rapidly evolving medium. It gives brands the opportunity to absorb what is happening with digital video content and advertising, helping them evaluate their next steps in this space.

The number of platforms where digital video content can be viewed—and advertisements placed around—is expanding at such a rapid pace that it has almost become a game of whack-a-mole for marketers. You may have conquered Facebook’s video feed, but look, over there, Twitter’s offering a platform to stream live content. And wait, are your consumers watching content in Snapchat on their smartphone? How much of your ad spend needs to shift to mobile video?

These questions are not reserved for the weeks before the NewFronts. But two weeks of presentations from digital networks, video platforms and publishers can make even the most up-to-date marketers feel as if they’re behind the curve on digital video.

US TV* vs. Digital Ad Spending as a Percent of Total Media Ad Spending, 2014-2020

Last spring, about a month before the 2015 NewFronts, the Interactive Advertising Bureau (IAB), which sponsors the NewFronts, asked members to assess their understanding of the event. Overall, US buy-side professionals in key industries were familiar with the workings of the NewFronts, with 77% reporting a solid understanding of the event.

When broken out by industries, however, the automotive sector ranked itself as having the greatest understanding. Meanwhile, the consumer packaged goods (CPG) industry, the sector spending the most on advertising in the US, was much lower: Just 63% of respondents said they had a solid understanding. That sector was also above the respondents’ average in “modest understanding” and “don’t know.”

For brands that have traditionally built awareness via TV campaigns, that medium remains a trusted partner. eMarketer estimates that spending on TV, while decreasing, is still a major expenditure for brands.

eMarketer corporate subscription clients can view the full report here.

Get more on this topic with the full eMarketer report, “Digital Video for Brands in the US: Challenges to Consider and Questions to Ask Ahead of the NewFronts.”

eMarketer releases over 200 analyst reports per year, which are only available to eMarketer corporate subscribers.

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