Chart - Budget Increases For Online Video

A recent study by Nielsen and the IAB recommended moving 15% of TV budgets to online video in order to increase reach at a lower cost. It seems that some online video buyers are taking heed. In their Q1 2013 “State of the Industry in Online Video” study, Adap.tv and Digiday find that 72% of video buyers’ budgets for the medium increased in the last year, by an average of 53% (compared to a 20% hike in Q1 2012). Among those who increased their spending, 39% re-allocated funds from TV budgets (up 12% points), with the amount of TV spending cannibalized averaging out at 11%. But the study finds that display budgets may be more in peril than TV dollars.

In fact, slightly more buyers (41%) took money from their display ad budgets than their TV budgets to fund their online video increases. The researchers believe that display budget cannibalization may ramp up more quickly than for TV because buyers are increasingly seeing their campaigns as being more aligned with TV than with display. This year, 54% believe that video should be more aligned with TV than display, and that’s up from 49% last year. By contrast, the proportion who believe video should be more aligned with display fell from 40% to 35%. What’s more, two-thirds of buyers view online video as a direct complement to TV (up from 56% in 2011), compared to only 9% who view it as a replacement for TV (down from 11% in 2011). Read the rest at MarketingCharts.