Ad Spending Around Original Digital Programming Has Nearly Doubled in the Past 2 Years

The average media agency will spend $4.4m on video advertising for original digital video content — defined as being professionally produced for digital consumption — in 2017 which is up from $2.4m in 2015 (76%growth).

Question #1 — How does the rise of original digital content impact traditional media (broadcast/cable) attempts to distribute the content digitally? The impact of ad-free players like Netflix has been obvious, but what about others such as Verizon’s Go90?

Question #2 — Are we starting to see an impact in television ratings from the overall supply of original digital content (The Crown, House of Cards, etc.)? At what point does this truly become a substitute good where we are trading one hour of traditional tv for one hour of original digital content?


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