US advertisers becoming increasingly reliant on online video
US branded video ad network BrightRoll has released a new online video advertising report, which reveals that US advertisers are becoming increasingly reliant on the medium to reach targeted audiences.
The report, based on data from a survey of executives and media buyers at leading advertising agencies across the US, found that online video has continued to grow in terms of effectiveness and value.
“This perceived increase in value from online video buys will continue to drive growth in this category, as evidenced by the fact that in the 2009 study 87% of respondents planned to devote more of their budget to online video, whereas in 2010, 94% of respondents plan to increase their spending in this area,” said BrightRoll.
The report’s key findings:
- 56% of respondents stated that they view online video advertising as either “more effective” or “much more effective” than other forms of advertising.
- Targeting was identified as online video’s most valuable asset by 32% of respondents, followed by ad unit format (21%), reach (19%), price relative to TV (10%) and ability to reuse creative (10%).
- 45% of respondents said they would most like to base online ad spend on cost per video view (CPV) while 34% said cost per engagement (CPE) and 16% said cost per impression (CPI).
- In 2009, advertisers, on average, bought 42% of their online video through ad networks, 43% of their video directly through publishers and only 15% through portals.
- In 2010, the majority of advertisers plan to spend their creative budget on interactive pre-roll (54%) as opposed to branded entertainment (20%), consumer content or webisodes (15%) or other forms of creative content (11%).
Recent comScore figures show that more than 180 million US internet users watched online video during March.
Around 31 billion online videos were watched in total during the month – up from 28.1 billion videos in February