Survey: Digital video gaining bigger piece of advertising pie
More TV and display advertising dollars are shifting to online video, according to BrightRoll’s third annual Online Video Advertising Report.
In BrightRoll’s survey (PDF) of media buyers and agency executives, 86% of respondents said they are shifting at least part of their display budgets to online video, while 65% said they expect to reallocate TV ad spend to online video. The survey shows that buyers are also moving budget from search, social media and direct response to online video.
Nearly two-thirds of respondents indicated that online video is equally or more effective than TV advertising.
In all, planned spending on online video is growing faster than all other online categories, according to the report: 28% of buyers expect to see the greatest increase in ad spending in online video this year, followed by mobile video (27%) and social media (25%).
Challenges remain, however. Survey respondents remain concerned about the lack of clearly defined success metrics for online video advertising, as well as a shortage of accepted industry standards.
Clearer success metrics (36%) and ROI (26%) are the two primary issues that must be addressed to spur broader deployment of online video campaigns, respondents said. Respondents continue to view the cost of online video as prohibitive as well: 23% believe that lower costs would encourage advertisers to increase spending in the category.
Targeting is key attribute
More than four in 10 media buyers view targeting as online video advertising’s greatest attribute – an increase of nine percentage points from BrightRoll’s 2010 report. Half of all agency respondents indicated that 40% or more of their ads will leverage behavioral targeting in the year ahead.
The report notes that 27% of media buyers said an online video component was included in more than half of their RFPs in 2010. Buying directly from online publishers is the dominant means of purchasing inventory, cited by 52% of respondents, followed by ad networks (31%), broadcasters (10%), portals (6%) and ad exchanges (2%).
Recently, the IAB released the results of a survey predicting 22% growth in digital video advertising in 2011, with online video accounting for 17% of total online display advertising budgets.
BrightRoll, based in San Francisco, says it has more than 70 million monthly unique viewers across its video ad network.