Media buyers’ primary objective for booking online video advertising campaigns is to deliver incremental reach to TV, according to the latest research from Web TV Enterprise.
Findings from the second bi-annual UK Online Video Advertising Market Report show that over 40% of media buyers now use video advertising campaigns for this purpose; indicating that TV budgets are driving growth of the market.
Only 19% of the 135 media buyers surveyed stated that measurement of click through rates is very important to their campaigns – this is another indication that online video advertising is being driven by brand awareness campaigns coming from TV budgets.
The survey revealed that video advertising now appears on more than half of media plans; demonstrating that the growing audience of professionally produced content on the web is starting to have a big impact.
“We estimate that online video advertising is now worth 3% of the UK TV ad market,” said Jamie Estrin, MD of Web TV Enterprise.
“While online video is still in its infancy, the market is starting to mature. Media buyers are recognising the opportunity of placing TV campaigns in front of highly targeted audiences online and reaching light TV viewers who are now regularly consuming catch-up TV and short-form video on the web.”
The UK Online Video Advertising Market Report found that the number of campaigns being booked has tripled in the last six months, suggesting confidence among media buyers is growing.
Some 40% of respondents said they had booked between one and five pre-roll campaigns in the past six months – they had previously booked the same number of campaigns over a period of 18 months.
Almost a third (31%) had booked more than ten video advertising campaigns in the last six months. Despite the number of campaigns growing, average spend on video campaigns remains the same; between £10,000 and £25,000.
However, almost a fifth (19%) of those surveyed claimed their average campaign spend was more than £50,000, up from 12% six months ago.
The research also shows that the majority of media buyers - 63% - intend to allocate up to 50% more budget to video advertising in 2010, with 13% allocating more than 50%. Just over a fifth (22%) of those questioned say budgets will remain the same.
Robert Black, Chairman of the IAB Video Council, said,"It’s very exciting to see the growth of the market with the increase in current and projected activity. The IAB Video Council hopes that the launch of VAST (Video Ad Standards Template) in the UK, and other initiatives planned for this year, will help make it easier for all stakeholders to do business and increase growth.”
When asked if anything was holding them back on investing more spend into video advertising, lack of measurement was the most common complaint – 34% agreed. This echoes results from Web TV Enterprise’s first bi-annual report.
Other results from this survey show that just over a fifth (21%) was held back by rates, with 9% not sure of audience reach
“It is great to see the continued growth of online video but more importantly the appetite for more knowledge and understanding of how the platform delivers in conjunction with other media, specifically TV,” said Bryan Magee, Business Director at Mindshare.
“If we are to sustain current investment levels and continue to grow the market then there is a real need to prove to clients the worth of online video. Whether this is via Comscore, UKOM or BARB, there are key issues that need to be addressed concerning topics such as incremental reach and engagement.”
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