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Online Video Ad Effectiveness Rivals TV's, Budgets Shifting

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Ad agency executives say online video is an increasingly powerful tool to reach audiences and, largely because of video's targeting capabilities, fully six in ten say online video ads are more effective than (30%) or as effective as (31%) ads delivered via television, according to a survey from BrightRoll.

Moreover, nearly two-thirds of ad execs (64%) say they are shifting TV dollars to video, while 86% say they are shifting at least part of their display dollars to video.

 

Ad dollars are also shifting from search, social media and direct response, though in slightly more modest numbers (28%, 27%, and 26%, respectively). 

Below, other findings from the third annual Online Video Advertising Report, which surveyed 100 ad agency executives and media buyers on their spending patterns and sentiments toward online video advertising.


Nearly three in ten (28%) ad execs expect the largest increases in ad spending in the online video category for 2011, followed by mobile video (27%) and social media (25%).

Targeting Capabilities Valued

More than two in five ad execs (41%) cite online video's targeting capabilities as the medium's greatest value, up 9 percentage points from 32% in 2010.

Reach is viewed as a key benefit (23%), up from 19% in 2010, followed by ad unit format (11%), price relative to TV (10%), and ability to reuse creative (10%).

Among all forms of targeting, ad execs say behavioral targeting is the most valuable (28%), followed by contextual (24%) and demographic (21%) targeting.


Looking for great digital marketing data? MarketingProfs reviewed hundreds of research sources to create our most recent Digital Marketing Factbook (May 2010), a 296-page compilation of data and 254 charts, covering email marketing, social media, search engine marketing, e-commerce, and mobile marketing. Also check out The State of Social Media Marketing, a 240-page original research report from MarketingProfs.


Purchasing Platforms, Ad Units

On average, ad execs buy more than one-half (52%) of their online video via ad networks, 31% of their video directly through publishers, 10% through broadcasters, and 6% through portals.

Most (91%) of ad execs say pre-roll performs better than in-banner video; two-thirds (67%) say pre-roll is more effective and 61% say it's more engaging.

About the data: BrightRoll conducted the survey among 100 executives and media buyers at advertising agencies across the US from March 23 to April 10, 2011.


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  • by Spencer Broome Thu May 5, 2011 via web

    Good to see that the ability to reuse creative is on the bottom end of most valuable aspects. Why re-purpose material when you can further strengthen your original message through online video?

  • by Mirk Thu May 5, 2011 via web

    A very nice article. But I have a question here. People are spending billions of dollar on facebook per month but am not very clear on that.How are people spending money on facebook? Your insights please.

    regards,
    Mirk [http://mirkateng.wordpress.com/]

  • by Ann Fri May 6, 2011 via web

    The shift is something to be expected as new windows of advertising opportunity are opened every day. The shifting becomes a challenge when the company must decide what percentage of what advertising dollars go to a new medium or opportunity. That will require research into your target audience’s behaviors, such as mobile/smartphone/tablet and social media usage.

    Ann
    SteadyRain
    http://www.steadyrain.com

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