New technologies driving up digital ad spending
Posted on Nov 20, 2012 by YuMe
Throughout this year and going into next year, new advances in online video-related technologies have boosted the amount of money brands and advertisers spend on internet video advertising, according to a newly released report from Digiday and Adap.tv.
The advertisers surveyed said that online video ad budgets increased 27 percent over this year in comparison to 2011 levels, and that next year should see 20 percent growth in spending in the sector.
As a result of new technologies, brands are beginning to shift their ad strategies away from traditional media and more toward the web. The survey found that the biggest decreases in ad spending occurred within broadcast television, print and cable TV. Not only is less being spent proportionally, but the cuts are directly boosting internet video ad spending. Among video ad buyers, 27 percent said TV ad spending cuts boosted online advertising, and 30 percent said they thought less money being spent on print ads meant that more was spent on online video.
"Today’s digital ad buyers and intermediaries view video in all its forms as just another way of engaging audiences, wherever their media and entertainment interests lead – and they want more of it," the report said.
Greater cohesion among ad strategies
While digital video ad spending is increasing, the report found that much of it is coming in conjunction with other forms of advertising. During the last three months of this year, 58 percent of ad buyers said they were coordinating their television and online video ad campaigns, and 20 percent more of the survey's respondents said they will combine their video efforts in 2013.
Although traditional mindsets that separate online video advertising and television ads still exist within many organizations, the study showed that these barriers are starting to disintegrate as brands better understand how consumers turn to multiple screens to view content.
"That’s not to say there’s complete organizational synergy in the buying and selling of video campaigns, but buyers increasingly are aware that they can now dial digital video up or down in [their] cross-media campaigns depending on what’s working and the audience they’re trying to influence," according to the report.
The study also looked at how brands purchase online video ads, finding that ad networks have become the preferred method. Of the estimated 700 marketers polled, 81 percent said they used a video ad network, and 52 percent of organizations this year purchased their spot directly, MarketingProfs reported in November.