Online Video Summit: Ad budgets to come from print and TV

Globally, online video advertising budgets will come from print and TV, not from online display or search, according to Bill Lederer, CEO of Kantar Video.

Speaking at today’s Online Video Summit in London, Lederer said: “This is what we are finding now from our colleagues at WPP companies and from the non-WPP companies that we are working with.”

Lederer told delegates that early online video advertising testing by Kantar has highlighted the following points – that ad context is  more important than the length of an ad; audience targeting is key; and a frequency of 3-5 is optimal.

By 2015, he predicts that creative spend will increase (but partly because this is a great way to test a number of advertising treatments); the rise of the specialist – the video agency of record; agencies to have video divisions too; and buying to become increasingly based on audience and context – rather than by programme.

Lederer also expects a lower percentage of spend on the medium, with much more on modelling, data targeting and ad serving (up to 25%).