Just a few weeks ago, the advertising industry was knee deep in the annual TV Upfronts. And as usual, all eyes will be watching to see how ad spend for the big networks and TV broadcasters ultimately nets out. However, there is a notable trend happening and no, we’re not talking about the tireless debate of how many dollars online video will finally steal from TV this year. Rather, online video is becoming an important strategy for TV buyers, more a compliment to their marketing plan and less of an “add-on” line item on their TV RFPs.
In our recent State of the Video Industry report, brands and agencies were asked to identify how much of their online video spend was going to be sourced during the TV Upfronts. On average, only 20% or less expected to buy their video advertising this year at an upfront, down significantly from 2011 – a whopping 24% down for brands. In fact, for the majority of both brands and agencies surveyed this year (70%), traditional TV Upfronts will make up 10% or less of their total video buy. But online video advertising continues to experience double-digit growth, which tells us that it’s finally taking its own seat at the media buying table, alongside TV.
Need further evidence? How about the growing support for the recently held Digital Content NewFronts? After seeing a 29% in ad spend last year, founding companies AOL, Google/YouTube, Hulu, Microsoft Advertising, Digitas, and Yahoo are back and attracting even more sizable audiences. Yes, TV will continue to command a large portion of media budgets – it’s not going anywhere . However new trends are showing us that online video is becoming an important offering in itself, as well as a strategic partner to TV. Upfronts? Newfronts? They’re all good.