UK media buyers predicted to increase online video budgets
UK media buyers will be increasing online video advertising budgets by 50% over the next 12 months, according to new research.
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, with a further 10% saying they would be doubling spend.
The research also 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.
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.”
The 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.
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.”
There has been a glut of US research into online video in recent weeks, with figures showing that it is gaining in popularity at a rapid rate. Nielsen Company research showed that there has been a 14.2% year on year increase in unique viewers to almost 136 million, with total streams up 31.4% to more than 11.2 billion in July.
eMarketer, meanwhile, reported that US online video spending will account for 4.3% of total online ad spending and 1.6% of television ad spending this year.