Online video ad deals in decline- report
- Added:
- Sep 29, 2009
The online video sector in the UK is suffering a severe downward trend, catalysed by the recession and market saturation as a myriad of competitors fight for market share, according to a new report.
The study, from the Direct Marketing Association (DMA) and StrategyEye, also highlights technological advances and changing consumer behaviour as providing new opportunities for advertisers.
The report shows a decline across all deal areas within the sector. Venture capital activity was hardest hit with deals down two thirds year-on-year in the first quarter of 2009.
Merger and acquisition deals across the online video sector were also down by 50 per cent on 2008 with markedly less M&A activity in the online video space than in other digital sectors.
Partnerships also decreased by half in 2009 compared to the first quarter of 2008.
According to the report, another key shift is changing consumer behaviour. Online video can now be accessed via the TV as opposed to being limited to computers with smaller screens and poorer audio.
Shaun Bailey, chair of the DMA Agencies Council, comments: “The challenge for marketers is how to use this relatively new channel to deliver accountable results. I believer online video opens up fantastic opportunities. As digital TV and online converge we are able to use the assets of each channel to produce adverts that use full audio visual stimulus to engage audiences, with the added ability to target, personalise and, importantly, track audience behaviour with online metrics.”
Source : www.dma.org.uk
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