More than half of media buyers believe that linking TV and VoD (Video on Demand) is essential if they are to significantly grow their video spend, according to new research.
The findings come from Collective’s 2014 UK Online Video Advertising Market Report, which drew together the thoughts of over 100 key media buyers, and demonstrated the growing need for TV and digital to work together more intelligently.
Key findings from the report include:
• 55% of media buyers placing an emphasis on the need to link TV and VoD
• 56% of media buyers plan to increase spend on VoD by more than 25% in the next six months
• 56% of digital media buyers claim to be responsible for both digital and VoD spends
• Average VoD spend exceeds £50,000
• 25% of buyers include VoD on over 90% of their plans
• 60% of buyers place more than half of their VoD campaigns on non-broadcast sites, up 5% over the previous survey
• View-through rate is considered the top measurement for judging an engaged viewers at 52%
• 49% cite audience demographic and behavioural data as the most important for targeting VoD, with 20% placing the emphasis on context targeting.
Feedback from the survey highlighted the significance of aligning TV and digital and the necessity for a more collaborative approach – with 55% of respondents stating that this was the most important factor in driving increased VoD spend in 2014 and beyond. Of these, 35% went on to say that proving VoD delivers incremental reach vs TV schedules was key.
“As TV budgets continue to drive VoD, media buyers have started placing greater emphasis on aligning their TV and online video campaigns to choreograph messages seamlessly across screens,” said Simon Stone, Commercial Director, Collective. “Since launching a year ago, we’ve seen the rapid uptake of our TV Accelerator targeting tool that combines BARB and online data to deliver incremental reach, additional frequency or sequential messaging.”
In April 2013, Collective launched its ground-breaking audience targeting technology, TV Accelerator in the UK. This innovative advertising solution serves relevant ads based on an advertiser’s TV schedule. Audiences can be reached using in-stream video, rich media, display formats and now social media, making it the first data-driven targeting solution for the UK market.
“It’s great to see Collective developing a tool that aligns TV and online video,” said Steven Ballinger, Head of Broadcast at Carat. “They are focused on delivering impactful multi-screen campaigns for our clients, always backed up with industry research to show the true value digital is adding to traditional TV campaigns.”
The survey results confirm that online video advertising continues to grow at a rapid rate, with 56% of buyers planning to increase their VoD spend by more than 25% over the next six months. In addition, 52% of buyers said that video is now an integral part of over half of bookings made, and a quarter of buyers also claimed to include VoD on more than 90% of their plans.
Collective estimates that the average campaign budget for VoD has reached £56,000, up £6,000 over last year’s survey. When compared to the overall investment in TV, there is still scope for the market to continue its rapid growth into next year and beyond, particularly if the right targeting tools and reporting metrics are made available.
“View-through rates are now the common currency for buyers in measuring the success of campaigns and the quality of video inventory they are buying,” said Stone. “The importance placed on CTR has dwindled since the last time this survey was carried out with a greater emphasis now being placed on the level of engagement and unique reach that online campaigns can deliver.”