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State of the Screens

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

By March 26, 2018No Comments

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?

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.