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Online video advertising spend to grow by 50%

Online video advertising spend to grow by 50%

Media buyers will be increasing online video advertising budgets by 50% over the next 12 months, according to research . This compares to a predicted budget decline in the overall UK advertising market of 14% in 2009.*

The Online Video Advertising Buyers’ Guide - the first bi-annual report from Web TV Enterprise – surveyed 101 media buyers booking pre-roll advertising campaigns and found that almost all (97%) were planning on either maintaining or increasing video advertising spend. Over half (54%) were looking at a 50% budget increase in the coming year; while a further 10% said they would be doubling spend.

Despite online video advertising being a relatively new advertising medium, along with brands’ restricted budgets in 2009, Web TV Enterprise’s research revealed that a quarter of buyers are currently spending between £25,000 and £50,000 on a video advertising campaign. 44% of the sample said they spend between £10,000 and £25,000.

However, a lack of solid measurement was cited as the main reason for cautious spending on online video advertising - a third of respondents believed this is preventing brands allocating larger budgets. A further 24% felt that a lack of research was affecting further investment.

Robert Black, Chairman of the Interactive Advertising Bureau (IAB) Video Council, said, “The IAB Video Council is aware of the need for online video advertising measurement and research - our key focus over the next 12 months will be addressing this barrier and providing crucial information to aid growth in the industry.”

Web TV Enterprise’s survey also revealed that the primary objective for using video advertising is to drive brand awareness - 67% of buyers agreed. Only 3% selected direct response.

Almost 70% of buyers questioned stated a preference towards bespoke, premium ‘solus’ pre-roll adverts; with 82% agreeing that solus spots were more valuable than multiple spot pre-roll alternatives.

Other key research findings include

97% of buyers say they are confident they know which content their ads are being run against, with 56% fairly aware and 41% very aware.
87% believed that viewers consume long-form content, for example catch-up television, and short-form content differently.
Half of those surveyed are currently buying both TV and online video advertising.
39% of buyers have booked between one and five campaigns over the past 18 months, with 34% booking more than ten.

General survey feedback also suggests confidence in the online video advertising space is high, despite budget cuts and a lack of client understanding being two of the prominent issues facing the industry at present. Many agree that online video advertising will have a strong presence in schedules over the next twelve months.

Jamie Estrin, Director of Web TV Enterprise and IAB Video Council member, said, “As one of the largest players in this evolving market, we have seen the appetite for online video advertising grow exponentially since launching our premium online video ad-network in 2007.

"Our feeling is that we are now at a tipping point in the UK market. We base this on the fact that media agencies are, for the first time, considering online video advertising as part of the media mix on the majority of campaigns where there is a TV ad creative - this was not the case 12 months ago.”

Estrin continued, “Media agencies have now bought into online video advertising and structured their planning and buying units accordingly. With a range of professionally produced content available on the web and the significant reach online video viewing delivers, the UK market is now ready for online video advertising.

"With this being the first ever survey of online video advertising media buyers conducted in the UK, we are looking forward to comparing the results when we produce our next report in spring 2010. We expect the frequency of campaigns to significantly increase, along with ad budgets allocated to online video advertising, and with it will come a deeper understanding of the value online video advertising is delivering to brands.”

The Online Video Advertising Buyers’ Guide is available for download at:

101 VOD buyers responded to a survey issued in August 2009.

 * Forecast from Group M, June 2009.

- Ends -

For further information please contact:
Laura-May Coope / Claire Armitt
01273 779492 / 01273 779449 /




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