Ad Agencies Shift Spend to Video
Most consider online video more effective than other ads
Video advertising is the fastest-growing format online. eMarketer estimates growth of about 40% in 2009 will continue at the same pace in 2010, with increases tapering slightly as online video matures. For now, marketers are pouring ever more funds into the format.
A survey from video advertising network BrightRollindicated that 94% of agency executives planned to spend more on online video in Q1 2010 than the prior year. That proportion was 7 percentage points higher than in Q1 2009, showing that agencies are only getting more involved in the space.
One reason is their satisfaction with online video’s performance. More than one-half of respondents considered video more effective than other forms of advertising, and 83% claimed they were getting more value for their video advertising dollars than a year ago.
In addition, online video’s biggest liability in 2009—targeting capabilities—is now viewed as its greatest asset. More than six in 10 agency execs said behavioral targeting had upped their video ad performance.
“Online video underwent a cycle of massive innovation in 2009, and has matured into a highly effective platform for advertisers to connect with their target audiences online,” said BrightRoll CEO Tod Sacerdoti, in a statement.
Problems remain, however. Agencies claimed videos that automatically start hurt their credibility the most, but about one-quarter were concerned with misrepresented preroll ads and videos that ended up below the fold.
Only 17% of respondents said they had had a video campaign executed in a way they did not expect, but an additional 31% were unsure if that had occurred. This suggests a lack of transparency that could contribute to the credibility problems agencies are worried about.
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