You will be redirected back to your article in seconds

Digital-Video Advertising in U.S. to Hit $6 Bil in 2014, But It’s Not Displacing TV Dollars

Even with rapid growth of online-video ad market, TV is forecast to outpace digital in actual dollars: eMarketer

Ad spending on digital video will increase 41.9% this year in the U.S. — to reach $5.96 billion — but TV advertising will still outpace digital in actual dollar growth in 2014, according to a new study from eMarketer.

Other research has indicated TV advertising budgets will shift to Internet video. But per eMarketer’s forecasts, TV spending in the U.S. will continue to climb over the next five years, growing 3.3% in 2014 to $68.54 billion.

“Time spent with digital video is growing significantly, and it’s taking away some TV time,” eMarketer analyst David Hallerman said. “But given the diversity of placements and platforms, digital video viewers are more difficult for advertisers to target.”

While digital-video advertising is growing faster, marketers will allocate more additional dollars to TV — $2.19 billion more than 2013, compared with $1.76 billion in new dollars this year for digital video. That’s a trend eMarketer expects to continue through 2018.

SEE ALSO: Advertisers Spend More Online Than on Broadcast TV for the First Time

Advertising in content on Internet-connected TVs like as set-top boxes, smart TVs and gaming consoles, accounts for much of the growth in the digital-video segment, according to eMarketer. In fact, digital video dollars on PCs are declining in favor of tablets and smartphones, with connected TVs helping pick up slack in the category.

According to eMarketer’s latest forecast, 113.2 million U.S. consumers, almost 60% of digital video viewers, will use connected TVs in 2014. By 2018, that’s projected to reach 90% of digital video viewers. “As audiences find it easier and easier to watch Internet-sourced content on their television sets, and as more and more content compels them to watch, the connected TV universe will offer marketers a unique blend of digital interactivity and TV’s big-screen power,” Hallerman said.

Much of the time audiences spend with digital video is content streamed through subscription services such as Netflix or Amazon Prime Video — neither of which carry advertising, eMarketer noted.

More TV

  • Wendy Williams Sober Living House

    Wendy Williams Reveals She's Been Staying in a Sober-Living House

    Wendy Williams, during an emotional monologue on her talk show on Tuesday, revealed through tears that she has been staying at a sober-living house. “So you know me for being a very open and truthful person,” she began the segment on “The Wendy Williams Show,” fighting through tears. “And I’ve got more to the story [...]

  • Hong Kong Industry Executives Seek Clarity

    FilMart: Hong Kong Industry Executives Plead for Clarity on Mainland Chinese Tax Policies

    At a time of heightened scrutiny of tax affairs in China’s entertainment sector, even industry veterans in Hong Kong are struggling to figure out how to operate in the new financial environment and pleading for more clarity from the Chinese government. Hong Kong produces about 60 films a year, three-quarters of which are typically co-productions [...]

  • Michael Jackson R Kelly

    'Leaving Neverland,' 'Surviving R. Kelly' Composers on How They Scored Sexual Abuse Docs

    How do you put music to child sexual abuse — especially if the accused predators are musical icons? That’s the challenge composers Chad Hobson and Nathan Matthew David faced as they scored HBO’s “Leaving Neverland” and Lifetime’s “Surviving R. Kelly,” respectively. The documentaries are built around interviews with the alleged victims of Michael Jackson (two [...]

  • Canadian Animation Shop Guru Studio Makes

    Canadian Animation Shop Guru Studio Makes Moves in China

    Guru Studio, an award-winning Canadian animation studio, is exploring the possibility of opening an office in Hong Kong or mainland China. The Toronto-based company is keen to get a slice of China’s animation market, which has been growing quickly. Louise Jones, Guru vice president of finance and business affairs, said at a FilMart panel discussion [...]

  • Viacom HQ LA

    Viacom Goes to War With AT&T Over DirecTV Carriage Deal

    Viacom has declared war against AT&T, blasting the telco giant on several fronts as the companies wrestle over a carriage renewal deal that is vital to Viacom’s long-term financial health. As of today, Viacom has begun running crawls and promo spots on its channels warning viewers that Nickelodeon, Comedy Central, BET, MTV and other channels [...]

  • Maureen FitzPatrick Rob Silverstein

    Rob Silverstein Out as 'Access Hollywood' Executive Producer After 20 Years

    Rob Silverstein, exec producer of NBC’s entertainment newsmagazine “Access Hollywood” and its spinoffs, is leaving the syndication franchise after 20 years at the helm. He’ll be replaced by “Hot Bench” alumnus Maureen FitzPatrick. Silverstein’s departure was announced Tuesday morning at a staff meeting for “Access” producers. Silverstein was also exec producer of the hourlong talk [...]

  • '9-1-1' Billboard Vandalized With Anti-Beto O'Rourke

    '9-1-1' Billboard Vandalized With Anti-Beto O'Rourke Message

    A billboard for the Fox procedural “9-1-1” on Pico Blvd., adjacent to the studio lot, has been vandalized with an anti-Beto O’Rourke message, Variety has learned. The imagery was put up by a politically conservative man who goes by ‘Sabo.’ The promotional art for the series featured on the billboard shows a car wreck sticking out [...]

More From Our Brands

Access exclusive content