There's A Major Shift From TV To Digital Video Ad Spending

Bad news for the TV industry.

After polling 5,000 advertising executives attending the Interactive Advertising Bureau's Digital Content NewFronts, the IAB found that 75% of U.S. senior executives plan to shift their budgeting from television to digital video ads.

And how will those digital video ads be distributed? According to a Be On survey, 73% of respondents will increase pre-roll ad spending in the next year. Social spending will increase by 53%. eMarketer made the following chart to display the breakdown:

And social media platforms understand that the shift is coming.

Bloomberg reported that Facebook, for example, is planning to charge advertisers between $1 million and $2.5 million dollars for 15-second video ads to play in consumers' news feeds three times in one day.

A 30-second Super Bowl ad is selling for $4 million.

Facebook COO Sheryl Sandberg has been priming Facebook to be compared to television for a while.

"Every night, 88 million to 100 million people are actively using Facebook during prime-time TV hours in the United States alone," she said during a call to investors last October.

Other popular companies are seeing an increase in digital video ads as well. Pandora, for example, has seen a recent uptick in video ads.

TV isn't getting entirely abandoned, but it has some very healthy competition.