Adap.tv and Admonsters research points to shift in perception of online advertising and highlights the challenges
86% of UK advertising agencies purchased digital video inventory in 2012, with 62% listing brand awareness as a primary goal. This and other data, revealed in the ‘State of the UK Online Video Advertising Industry’ research report undertaken by Adap.tv and Admonsters, point to advertisers’ evolving perception of online advertising.
“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.”
The complete report is available to download here and key findings are as follows:
What is driving the increase in online video ad spend?
Primary goals of online video advertising for media agencies:
62% say brand awareness
23% want to extend their TV reach
15% list direct response
– 64% of agencies say the increased spend on digital video advertising comes from digital display. 29% say it is from traditional TV budgets.
– 79% of agencies believe online video advertising should complement TV advertising, rather than replace it.
What is preventing some advertisers moving budget online?
– 50% of agencies say lack of quality inventory is the biggest barrier to TV budgets moving online.
– About 43% of agencies say they do not have the tools to enable truly unified planning and measurement of TV and video campaigns.
Buyers are adopting new trading models
– On average, 48% of advertiser video budgets were devoted to Real-Time Bidding (RTB) channels.
– However 72% of the publishers surveyed do not offer video on an RTB basis.
– Nearly 22% of publishers and 29% of agencies surveyed were not familiar with the term ‘programmatic’.
– 10% of publishers surveyed currently run a private video ad marketplace, with an additional 43% 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% of those who aren’t currently running a private video ad marketplace intend to do so within the next 12 months.
The research was commissioned by Adap.tv and conducted by Admonsters in November and December 2012 with digital marketing and media professionals.
Adap.tv is the video advertising platform of choice for the world’s largest brands, agencies, publishers and ad networks. A unified, programmatic platform that provides buyers and sellers with automated tools to plan, buy and measure across linear TV and online video, Adap.tv is transforming the way video advertising is bought and sold. Named by Inc. Magazine as the fastest-growing video advertising company in the US in its “Inc 500” 2012 annual ranking on private companies, Adap.tv also earned “Fastest-Growing Private Company in Silicon Valley” honors by the editors of the Silicon Valley/ San Jose Business Journal. Headquartered in San Mateo, Calif., Adap.tv has offices in New York, Los Angeles, Chicago, London and Sydney. Adap.tv is a privately held company backed by Bessemer Venture Partners, Gemini Israel Funds, Redpoint Ventures and Spark Capital. For more information, please visit http://adap.tv/ and follow Adap.tv on Twitter @Adaptv.
Founded in 1999, AdMonsters is the global leader in providing strategic insight on the future of digital media and advertising technology through its conferences, website, research and consulting services. AdMonsters focus is on media operations, monetization, technology, strategy, platforms and trends. Its conferences and website are the meeting place for this dynamic and expanding community to connect, gain insight, develop best practices and exchange thought leadership. AdMonsters conferences include AdMonsters Publisher Forum, OPS, OPS Markets, OPS Mobile, OPS TV and AdMonsters Screens. In the early days of online media, the community was comprised largely of operations professionals at online publishers and advertising technology providers. Today’s expanding ecosystem now includes publishers and content creators, agencies, SSPs, DMPs, DSPs, RTB and service providers, technology and platform developers, advertising networks, brands and investors.