Corporate Eye

Online Video Advertising Will Steal Significant Budget from TV and Display

For the third year in a row, BrightRoll (a leading online video advertising services provider) conducted an online video advertising study among ad agency executives. The report reveals significant shifts in advertising spending in 2011 particularly for online video advertising, which is growing faster than all other online advertising categories. In fact, budget shifts to online video advertising are coming primarily at the expense of television and online display advertising budgets.

Six out of ten ad agency executives who responded to the BrightRoll survey indicated that they believe the targeting capabilities of online video advertising makes it more effective than or as effective as television ads. 86% reported they are shifting investments in online display advertising to online video advertising in 2011, and 64% said they would shift at least part of their television advertising budgets to online video advertising. Search, social media, and direct response advertising budgets aren’t safe from the allure of online video advertising either. Nearly 30% of ad agency executives who responded to the BrightRoll survey indicated they planned to shift budgets from search, social media, and direct response advertising to online video advertising.

Overall, ad agency executives who responded to the survey indicated that the most common increases in ad spending in 2011 will be in online video advertising (28%), mobile media (27%), and social media (25%).

There are several reasons why ad agency executives and their clients are focusing on the potential for online video advertising and making the necessary investments to leverage the medium. The BrightRoll study revealed that behavioral targeting capabilities of online video advertising are what makes the medium so vital to their marketing plans with 41% of respondents citing this as the most valuable attribute of the medium. Reach (23%), ad unit format (19%), price relative to television (10%), and the ability to reuse creative (10%) were viewed as less valuable but still important.

It’s the behavioral targeting capabilities of online video advertising that has the advertising world so excited. The BrightRoll study reports that advertising executives believe behavioral targeting is most important for online video advertising success (28%) followed by contextual (24%), demographic (21%), and content (10%) targeting.

When it comes to purchasing online video advertising space, buying directly from online publishers is the most common method of purchasing inventory (52%), followed by buying from ad networks (31%), broadcasters (10%), portals (6%), and ad exchanges (2%).

Online video advertising is still a fairly new medium but it’s growing very quickly. It’s safe to assume that the online video advertising market will look very different in a couple of years. The question is whether or not your brand will be an early adopter and learn to leverage its capabilities now or if you’ll be trying to catch up later.

What is your company doing in the online video advertising space? Leave a comment and share your thoughts.

Image: stock.xchng

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Susan Gunelius is the author of 10 marketing, social media, branding, copywriting, and technology books, and she is President & CEO of KeySplash Creative, Inc., a marketing communications company. She also owns Women on Business, an award-wining blog for business women. She is a featured columnist for Entrepreneur.com and Forbes.com, and her marketing-related articles have appeared on websites such as MSNBC.com, BusinessWeek.com, TodayShow.com, and more. She has over 20 years of experience in the marketing field having spent the first decade of her career directing marketing programs for some of the largest companies in the world, including divisions of AT&T and HSBC. Today, her clients include large and small companies around the world and household brands like Citigroup, Cox Communications, Intuit, and more. Susan is frequently interviewed about marketing and branding by television, radio, print, and online media organizations, and she speaks about these topics at events around the world. You can connect with her on Twitter, Facebook, LinkedIn, or Google+.
 
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