IAB: Digital video advertising steals dollars from TV

Latest State of the Video Industry report finds revenue, yield and inventory levels all rose in digital video

Video advertising has had another stellar year in terms of revenue and yield as advertisers increasingly deflect spend from other channels such as free-to-air TV and print.

According to the second annual State of the Video Industry report, released by the Interactive Advertising Bureau (IAB) Australia and AOL division, Adap.tv, the Australian online video advertising market grew 78 per cent in the last financial year.

Buyers almost all increased spend on digital video, with an estimated rise of 34 per cent this year, and spending is expected to increase by 37 per cent in 2015.

According to the recent IAB and PricewaterhouseCoopers report, <i>Online Advertising Expenditure Report</i>, video advertising was worth $196 million in the 2014 financial year.

Publishers also reported inventory levels rose 42 per cent over the same period, and nearly two-thirds have seen their CPMs increase by 25 per cent or more in the last 12 months.

Mobile was not surprisingly, the bigger growth engine and more than 80 per cent of buyers were purchasing mobile video inventory.

The report also found 66 per cent of Australian advertisers had shifted their media spend from free-to-air TV in order to take advantage of online video opportunities. Other channels losing out to digital video included print (45 per cent) and online display (36 per cent).

In addition, 84 per cent of buyers were still purchasing direct from publishers, 66 per cent through demand-side platforms, and 55 per cent through ad networks.

However, inventory availability is proving a key issue - for 88 per cent of buyers at least. Long-form content was the most scarce of the formats.

“Publishers tell us inventory levels have risen 42 per cent in the last year, while fill rates have also increased,” IAB Australia CEO, Alice Manners, said in a statement. “That shows the insatiable appetite for video content. We can expect inventory levels will continue to increase over the next few years with particularly strong demand for long-form inventory and Australian content.”

About 20 per cent of inventory is being purchased programmatically and more than 60 per cent of publishers are making inventory available in these environments, the report stated.

Adap.tv’s managing director, Mitch Waters, said the report demonstrated how important data is in making purchase decisions around online video. Eight-four per cent of agencies, for example, said they were using data targeting to make video buying decisions in Australia.

“Programmatic trading in enabling buyers to develop an increasingly sophisticated and accountable approach to their buying, while giving publishers immediate intelligence on the sort of content that is in-demand and providing the highest yield,” he said.

The IAB/Adap.tv Australian report is based on a survey of 130 publishers, agencies and marketers in July and August 2014 and comes out of a larger survey of 800 individuals worldwide.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or
Error: Please check your email address.
Show Comments

Blog Posts

Social purpose: Oxygen for your brand health vitals

If trust is the new currency, then we’re in deep trouble. Here's why.

Carolyn Butler-Madden

Founder and CEO, Sunday Lunch

Customer experience disruption: Healthcare faces a bitter pill

Over the past decade, disruptors such as Amazon, Apple and Australia’s Atlassian have delivered technology enhanced customer experiences, which for the most part, have improved customers’ lives and delivered unparalleled growth. Can they do the same for healthcare?

Alex Allwood

Principal, All Work Together

How can a brand remain human in a digital world?

Some commentators estimate that by 2020, 85 per cent of buyer-seller interactions will happen online through social media and video*. That’s only two years away, and pertinent for any marketer.

James Kyd

Global head of brand strategy and marketing, Xero

https://bit.ly/2qLgzmR Transform your life a proven digital blueprint

Okitoi Steven

How this banking group tackled a digital marketing transformation

Read more

Its great to hear that companies including JCDecaux, oOh!media, Omnicom and Posterscope Australia have all partnered with Seedooh inorder...

Blue Mushroom Infozone Pvt Ltd

Out of home advertising companies strive for greater metrics and transparency

Read more

Much ado about nothingAnother fluff piece around what it could possibly do rather than what it is doing

gve

How AMP is using AI to create effortless ‘experiences’

Read more

is it true that Consumer expectations are also changing as a result. If we trust someone with our data there is also an expectation that ...

Sunita Madan

Society will decide where digital marketing takes us next: Oracle

Read more

This Blog is Very interesting to read and thank you for sharing the valuable information about Machine Learning. The information you prov...

johny blaze

What machine learning has done for the Virgin Velocity program

Read more

Latest Podcast

More podcasts

Sign in