Almost all online video advertisers in the UK are buying their ad in a TV-like way, indicating the cost-per-action model is no longer working for video advertisers, according to new research.
The study, from Videology, also suggests that screen-agnosticism for campaigns is gaining strength, with the share of campaigns running across PC, mobile and connected TVs doubling over the quarter, and almost two thirds of campaigns running across at least two screens.
The research from the video advertising platforms –come from its second quarter 2014 findings on the video advertising market in the UK.
“Reserved buying at a fixed CPM is now fully embedded as the way for advertisers to buy video,” said Rich Astley, UK managing director, Videology. “As television and video buying becomes more converged advertisers want to know they can purchase video in the same way regardless of which screen it will be broadcast on. Guaranteed, programmatic buying is at the core of our offering, and it is clearly having an effect, as 9 out of every 10 campaigns are purchased in this way.”
According to the analysis, which is based on 852 million impressions delivered via Videology’s platform from 1st April to 30th June 2014, 96% of advertisers bought video ads in a guaranteed way, with only 4% using the cost per action model.
Highlights from the Q2, 2014 U.K. Video Market At-A-Glance infographic include:
• Over 90% advertisers in Q2 were buying their online video ads the same way they do on TV – in a reserved fashion, at a guaranteed CPM
• Screen-agnosticism continues to grow, with the share of campaigns running across PC, mobile and connected TV doubling over the quarter
• The use of advanced targeting continues to grow, having seen a 65% increase in share year-on-year
• While :30 second ads remain the most popular, retaining a 66% share, :20 second ads increased their share by 30% quarter-on-quarter
• FMCG advertisers made up a majority (40%) of the impressions on the Videology platform – increasing its share 54% quarter-on-quarter. The retail sector also saw an 71% increase in its share year-on-year to 12%
The full U.K. Video Market At-A-Glance and other country-specific versions are available on the Videology website.