2019 will be a landmark year for marketers. It is a turning point when advertisers will plan for spending more than half of video budgets to original content. Reports from AIB say that they will also plan for an increase in investment in programmatic video inventory.

A new report from the Interactive Advertising Bureau (IAB), indicates that more than half of digital video ad spend in 2019 will be driven by video ads featuring original content. Advertisers expect to spend, on average, $18 million in 2019, up from $14.2 million in 2018. In addition, eMarketer expects programmatic video ad spend to reach $29.24 billion this year. It will account for almost half of all US programmatic digital display ad spending.

According to the report, the annual spend on original video ads is expected to grow 31% from 2018. This makes sure it has gained over all other types of video spend. In the survey, the dominant factor for consideration while allocation for video ad budgets is the content quality. Interestingly, it is also the biggest hurdle for increasing video ad budgets.

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Original content can deliver custom creative in various formats to drive high-impact branding and prominent placements. The report puts this as the core benefit of high quality content. Some of the other factors that contribute to the increasing trend in original video spend are – Increased targeting options, custom product integrations, and a more open ad environment, respondents are reported to have said.

In 2019, programmatic placements continue to rise in and digital display ads are expected to make up almost half of all the total programmatic buys in the U.S., according to eMarketer. For programmatic video, ad spend on mobile share is estimated to grow to 53.9 percent in 2020 and it will leave desktop behind within 2019. In addition, incremental growth in programmatic video spending is also seen on connected TV, over-the-top (OTT) video and social video advertising.

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Since the consumption of mobile video to over-the-top (OTT) content is much higher, marketers need to focus on developing engaging video content and more efficient buying mechanisms.

Clearly, ad dollars need to be focused on original video advertising formats. In addition, one thing that is evident now is that unique content does what low quality, repeat content cannot – it serves to connect consumers to brands in new and engaging ways. Similarly, increase in programmatic buys for video shows greater perceived efficiency – and pushes greater ROIs.

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