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Eighty-six per cent of UK advertising agencies purchased digital video inventory in 2012, with 62 per cent listing brand awareness as a primary goal, according to a research report by Adap.tv and Admonsters.
“This is a pivotal point as the worlds of TV and online advertising begin to really merge for the first time,” says Brian Fitzpatrick, managing director at Adap.tv Europe. “The report highlights many of the changes buyers and sellers are experiencing. Price, quality and measurement are the key factors in bridging the gap between TV and online and the introduction of products like Online Campaign Ratings, Verified Viewability and Unified Planning are at last giving TV buyers the ability to follow audiences online and shift their TV budgets.”
Key findings include:
What is driving the increase in online video ad spend?
– 62 per cent say brand awareness
– 23 per cent want to extend their TV reach
– 15 per cent list direct response
– 64 per cent of agencies say the increased spend on digital video advertising comes from digital display. 29 per cent say it is from traditional TV budgets.
– 79 per cent of agencies believe online video advertising should complement TV advertising, rather than replace it.
What is preventing some advertisers moving budget online?
– 50 per cent of agencies say lack of quality inventory is the biggest barrier to TV budgets moving online.
– About 43 per cent of agencies say they do not have the tools to enable truly unified planning and measurement of TV and video campaigns.
– On average, 48 per cent of advertiser video budgets were devoted to Real-Time Bidding (RTB) channels.
– However 72 per cent of the publishers surveyed do not offer video on an RTB basis.
– Nearly 22 per cent of publishers and 29 per cent of agencies surveyed were not familiar with the term ‘programmatic’.
– 10 per cent of publishers surveyed currently run a private video ad marketplace, with an additional 43 per cent believing that a private marketplace would adequately address their concerns about public marketplaces (which focused on lower inventory prices and lack of control over buyers).
– 30 per cent of those who aren’t currently running a private video ad marketplace intend to do so within the next 12 months