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Digital Video Ad Spend Continues to Surge

07 Apr 2011

Sharp increases in digital video advertising dollars will continue over the next 12 months. The now $1 billion+ market is pegged to rise 22 per cent, according to a new survey.

The U.S based IAB notes that 69 per cent of marketers and 55 per cent of agency executives say digital video advertising will rise in the next 12 months. Those surveyed in the U.S. expect to spend 17 per cent of their total online display advertising budget on digital video during that time.

Digital marketers say consumers show a higher engagement rate with online video, according to the survey. Also, digital video is more trackable and targetable and digital video production is less expensive. The findings also say marketers will shift TV ad dollars to digital video because of better ROI, while media agencies and television will shift more emphasis to digital video to follow target audiences.

The most popular digital video format is still pre-roll. Other in-demand formats include in-banner, expandable banner, mobile video, rich media overlay and post-roll. As has been revealed in other surveys, the IAB analysis shows that most respondents believe the appropriate length is 15 seconds, with the preferred pricing model being CPM.

In a statement, Randy Cohen, president of U.S. based Advertiser Perceptions, a media research company, quoted a senior agency buyer who noted: "Digital video is becoming an ever-more common way that our target is consuming what was traditionally broadcast content -- and our target is spending more time online. Video is another way to reach and engage the target."

The study, which took place Nov. 17 to Dec. 6 last year, has 500 respondents, digital and/or television media decision makers that intend to spend $1 million or more in the next 12 months.

Source: MediaPost


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