Digital Video Advertising Trends 2011
Digital video advertising has become a driving force behind the ongoing metamorphosis of the digital media landscape. Several studies indicate spend is undeniably on the rise with eMarketer predicting US spend will reach $5.5 billion by 2014, up from $1.5 billion in 2010.
Break Media partnered with market research leader Advertiser Perceptions Inc. for an in-depth study of online video advertising and the issues faced by advertisers when using this ad format. Our goals were to look at how and why advertisers are using digital video advertising, what they plan for the next 12 months, who makes the decisions, the need for standardized metrics, and where the video ad industry is succeeding versus not. We hope our research will improve the video ad landscape by answering key questions and raising thought-provoking issues.
We look forward to chatting with you in-depth and looking at how the study might apply to your businesses. The findings below are just a sample of what the study offers. We hope they pique your interest.
- Digital video ads will continue to represent a small portion of overall display advertising budgets, generally less than 25%.
- One-third of advertisers place no ads with video ad networks, instead buying directly from online publishers.
- Transparency of ad placement ranks as a secondary concern to buyers of video ads.
- Even advertisers who call for a video ad GRP exactly equivalent to TV GRPs do not necessarily believe it will lead to higher spend on video ads.
- Advertisers favor pre-roll by a 2:1 margin over other video formats, despite research indicating pre-roll is declining in effectiveness.