With some in the media questioning the value of New York City’s newfront season—a two-week period where online destinations present upcoming video programming in the hopes of getting advertising commitments—the Internet Advertising Bureau (IAB), the member organization that oversees the events—has released the results of a survey showing how beneficial newfronts are.
In March 2016, the IAB surveyed 360 marketing and media buying professionals who were each responsible for at least $1 million in total ad spending. It found that 8 out of 10 said attending newfronts in 2015 led to them spending more on advertising for original online video during the next year. Further, 71 percent said they would attend the 2016 newfronts, and planned to spend 38 percent of their yearly online video budget during the events.
Ad spending on original online video more than doubled since 2014, rising 114 percent: The average video ad spend rose from $2.1 million in 2014 to $4.5 million in 2016.
Marketers and advertisers are enthusiastic about original online video: 68 percent believe that it will be as important as television in the next 3 to 5 years. The survey also asked about marketing and advertising challenges, finding that insiders are concerned with buying high-quality programming, receiving reliable ROI metrics, and executing ad buys easily.
Newfronts are also attractive to buyers who focus on TV advertising, with 64 percent saying they committed more than they had intended to after attending the 2015 newfronts. Compare that to online-focused buyers, 49 percent of whom said they spent more on original online video during the year than they had intended after attending the 2015 newfronts.
“This study demonstrates that the newfronts have the ability to move ad dollars,” says Anna Bager, senior vice president and general manager for mobile and video at the IAB. “Marketers and agencies are telling us they clearly see great value in original digital video programming.”
View the full results online (no registration required).