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

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

looking for the best quality of SMM Panel ( Social Media Marketing Panel ) is a website where People Buy Social Media Services Such as Fa...

Kavin kyzal

How to manage social media during Covid-19

Read more

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Blog Posts

Ensuring post-crisis success

The COVID-19 pandemic has exposed brands’ CX shortcomings and a lack of customer understanding. Given ongoing disruption, customer needs, wants and expectations are continually changing, also causing customers to behave in different ways. Just look at hoarding toilet paper, staple and canned food, medicinal and cleaning products.

Riccardo Pasto

senior analyst, Forrester

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Sign in