Spend on Digital Video Advertising Set to Rise 22% in the Next 12 Months
A survey recently released by the Interactive Advertising Bureau (IAB) shows, among many things, that advertisers see audiences respond better to digital video advertising (DVA), and that online video is seen as more trackable, targetable and less expensive.
“An Inside Look at Demand-Side Perceptions of Digital Video Advertising” surveyed 500 respondents, who were categorized as either marketer, agency, higher level titles, lower level tiles, television decision making, or digital decision making.
According to the survey, 69 percent of marketers and 55 percent of agencies plan to boost their DVA spending in the next 12 months, with an average growth of 22 percent expected in that time span. Agencies are more bullish than marketers, and TV and digital media decision makers are on the same page, according to IAB. DVA is expected to account for 17 percent of total ad budgets in the coming 12 months.
The survey notes that the majority of marketers will shift TV ad dollars toward DVA, driven by lower costs, better trackability and targeting, and superior ROI.
Marketers will be driven more by ROI than the other types of respondents surveyed, while TV decision makers and agencies will shift TV ad dollars to DVA based on where their audience is moving.
Targeting, results and reach were cited as the most important decision making criteria for agency, marketer, online and TV respondents alike. Marketers, however, were least concerned about cost.
ROI measurement was the biggest obstacle hindering greater usage of DVA for marketers, while standard metrics were the biggest obstacles for agency and TV respondents.
Pre-roll ads were the most preferred digital video ad type for all respondents, while the CPM pricing model was the most preferred type of pricing. The appropriate length of a digital video ad was considered to be 15 seconds.
While marketers don’t appear to be committed to a single format, agency and online respondents were most committed to pre-roll ads. These two types of respondents were also the most frequent users of all video ad formats, including pre-roll, in-banner, expandable banner and mobile video.
Rich-media overlay and post-roll ads will also be used in the next 12 months, according to all respondents.
One of the key takeaways from the survey was that marketers are lagging in nearly all areas, pointing to the need for more education and greater exposure to DVA. To accelerate migration to DVA, ROI measurement must be improved, standardized metrics are needed and the audience shift to digital must be demonstrated, according to IAB.
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