Budgets Rapidly Increase for Online Video
According to a recent study from BrightRoll, budget increases for online video outpace all other online categories, as money is shifted from TV and display-ad budgets.
The “BrightRoll Video Advertising Report: Q1 2011” found that online video’s targeting capabilities remain its most appealing feature. Reach is also a strong draw.
Targeting capabilities are an important factor for 91 percent of advertisers when buying online video, according to the study. Behavioral targeting (28 percent) was the most valuable form of targeting for online video advertising, followed by contextual (24 percent), demographic (21 percent), content (19 percent) and other (9 percent).
Performance vs. TV advertising is an area of online video advertising that 29 percent of respondents would like to see more research on, followed by 28 percent who pointed to change in purchase intent or brand lift.
About 85 percent of respondents said they plan to shift ad spend away from display ads toward online video, while 65 percent said the same about TV ads. When asked to compare the effectiveness of online video advertising and TV advertising, 30 percent said online video advertising is more effective, while about the same said it was as effective.
Cost per impression is the most popular metric that respondents will base their ad spend for online video advertising on, followed by cost per engagement, cost per viewer and cost per click.
Fifty-two percent of respondents are most inclined to buy video inventory from publishers (e.g., Hulu), while 31 percent said ad networks, 10 percent said broadcasters, 6 percent said portals and 2 percent said ad exchanges.
“Recognizing and consequently tackling online video’s limitations is key to ensuring continued success, and this year’s survey highlights key areas that need attention,” the report noted. “Respondents cited clearer success metrics (36%) and ROI (26%) as the two primary concerns that need to be addressed in order to facilitate further implementation. As with previous years, respondents still view online video’s cost as prohibitive, as 23% of respondents felt that lower costs would encourage advertisers to increase their spending in the category. However, this figure is down 9% from Q1 2010.”
Online video was cited as the advertising category to see the biggest overall increase in media spend this year, followed closely by mobile video and social media.
This report from BrightRoll clearly shows a visible shift in ad dollars away from TV and toward online video, which reflects a following of the eyeballs.
Source:
