Smartclip has released findings from its annual industry research into the uptake of digital video advertising. The research shows that marketers are waking up to the opportunities presented by digital video advertising and adopting a multi-screen approach.
The findings demonstrate how digital video and multiplatform advertising are now playing a substantial role in marketing and advertising portfolios. It also provides an insight into how advertisers are planning their budgets for the year ahead as well as highlighting that greater education is required around the potential of Connected TV.
Almost half (47 per cent) of those surveyed have now embraced digital video advertising in their campaigns and almost two thirds (61 per cent) stated that they would be considering it as an option over the next 12 months. A very large majority (88 per cent) indicated that their digital video advertising spend has either remained the same or increased, with a whopping 89 per cent agree that online video is more, or as effective as linear/banner advertising, up from 66 per cent this time last year.
Whilst digital advertising spend is continuing to grow, it is clear from the findings that further information is needed when it comes to formats available to marketers as when polled, half were familiar with pre- (55 per cent) and post-roll (46 per cent) formats but few recognised companion (13 per cent) and non-linear (16 per cent) formats. Respondents stated that they most associated digital video advertising with entertainment (66 per cent), sport (64 per cent) and social media (40 per cent).
Shirlene Chandrapal, VP Connected TV smartclip comments: “The results demonstrate that the industry has recognised the value of the multi-screen approach however work still remains to be done to educate the market on the untapped potential of Connected TVs. There is a thirst from consumers to get the best content available and Connected TVs are set to be the next living room evolution. With connected TV’s predicted to make up 90 per cent of the TV market in the UK by 2014, the stage is set for widespread adoption over the course of 2012.”
Tablets and smartphones seem to be the platforms of choice for digital video advertising, with almost two thirds (63 per cent) of marketers stating that they were familiar with these, closely followed by Connected TVs (46 per cent) and gaming consoles (47 per cent). This familiarity seems to be translating into adoption as over 50 per cent of respondents stated that they are or will be advertising on one or more of these platforms over the next 12 months.
The research also establishes marketer’s attitudes towards digital video advertising. Over half (55 per cent) think it should be more interactive, half think it should be more targeted to the end user and a further third say video adverts should be shorter than TV and radio adverts.
Sam Kayum, MD smartclip UK, adds: “These findings clearly demonstrate the growing appetite for online video advertising. Technology is forcing the industry to reassess their business models as audiences migrate away from traditional channels. The next step in this evolution is for businesses who have traditionally embraced advertising innovation to implement a successful connected TV strategy. We expect the industry to move towards these business models to optimise their advertising revenues in the near future.”