Ad agencies are spending more on online video, with many shifting budgets from display to fund the investment, according to a new UK survey.
The findings, from Adap.tv and Admonsters, shows an evolving digital advertising industry. In particular, TV and online advertising are finally beginning to merge, having until now been seen as separate – and often competing – entities.
The majority (86%) of UK advertising agencies bought digital video inventory in 2012, according to the study.
Meanwhile, brand awareness (a key aim of TV advertising) is a primary goal of online video advertising for 62% of agencies.
Most agencies (64%) say the increased spend on digital video advertising comes from digital display.
However, 43% of agencies say they do not have the tools to enable truly unified planning and measurement of TV and video campaigns and 50% of agencies say lack of quality inventory is the biggest barrier to TV budgets moving online.
The ‘State of the UK Online Video Advertising Industry’ research report was commissioned by Adap.tv and conducted by Admonsters in November and December 2012 with digital marketing and media professionals.
“This is a pivotal point as the worlds of TV and online advertising begin to really merge for the first time,” says Brian Fitzpatrick, managing director at Adap.tv Europe. “The report highlights many of the changes buyers and sellers are experiencing. Price, quality and measurement are the key factors in bridging the gap between TV and online and the introduction of products like Online Campaign Ratings, Verified Viewability and Unified Planning are at last giving TV buyers the ability to follow audiences online and shift their TV budgets.”
The complete report is available to download here (registration required) and key findings are as follows:
What is driving the increase in online video ad spend?
• Primary goals of online video advertising for media agencies:
o 62% say brand awareness
o 23% want to extend their TV reach
o 15% list direct response
• 64% of agencies say the increased spend on digital video advertising comes from digital display. 29% say it is from traditional TV budgets.
• 79% of agencies believe online video advertising should complement TV advertising, rather than replace it.
What is preventing some advertisers moving budget online?
• 50% of agencies say lack of quality inventory is the biggest barrier to TV budgets moving online.
• About 43% of agencies say they do not have the tools to enable truly unified planning and measurement of TV and video campaigns.
Buyers are adopting new trading models
• On average, 48% of advertiser video budgets were devoted to Real-Time Bidding (RTB) channels.
• However 72% of the publishers surveyed do not offer video on an RTB basis.
• Nearly 22% of publishers and 29% of agencies surveyed were not familiar with the term ‘programmatic’.
• 10% of publishers surveyed currently run a private video ad marketplace, with an additional 43% believing that a private marketplace would adequately address their concerns about public marketplaces (which focused on lower inventory prices and lack of control over buyers).
• 30% of those who aren’t currently running a private video ad marketplace intend to do so within the next 12 months
Source:
http://adap.tv/
www.admonsters.com
