Online video and television advertising are no longer vying for the same marketing dollars, according to a new survey. Instead, online video has matured into a complement for television, planned and bought in tandem with the old-school screen.
An Adap.tv/Digiday survey of more than 700 digital marketers reported that the industry will spend an average of 27 percent more on video ads this year and expects to spend another 20 percent more in 2013. That money is less likely to come from television budgets, as buyers were once sure it would. While print and display budgets suffer, TV and online video are thought of as a dynamic duo.
Marketers are laying the foundation with a mass-market television buy, then following up with a more targeted punch from online video advertising. The survey also suggests that programmatic buying, which allows cross-media planners to fine tune online video campaigns as they run, is encouraging the increase in online video ad budgets.
“In general, you’re seeing an emphasis on video as a mechanism to reach audiences where they are,” said Adap.tv president Toby Gabriner. “And the data clearly shows that programmatic is a key driver of that.”
On the flip side, traditional thought about how to target TV audiences is seeping into online buys. “If you think about the way TV is bought and sold, it’s done against target-delivery demos. That model is starting to migrate and become a greater share of how video is being sold,” said Gabriner.
“Agencies are starting to say, I’m only going to pay you for the in-target delivery of females, 18-24, for example,” Gabriner said. “The pressure is then on both sides to try and cherry pick and identify impressions that map to the audience. Programmatic is a great enabler of that.”
Indeed, survey results showed that agencies tripled their patronage of exchanges and DSPs this year. Likewise, business at agency trading desks is up by 19 percent, according to the survey. Even ad networks showed a 32 percent increase in the business of video ad buying.
This shifting attitude toward online video by the mainstream industry is reflected in shifting budgets. Last year, respondents to a similar survey thought online video ad budgets would erode television budgets. This year, 20 percent fewer ad buyers expected online ad budgets would eat into traditional television. Now, online video advertising has its own budget line — 22 percent said digital video budgets are “incremental.”
Instead, more planners and buyers reported online video should be aligned with television, not display advertising, as they had previously reported. About 67 percent of respondents said they see video as a direct complement to television. About 80 percent of agencies expect to be planning and buying TV and online ad space together by next year.
To learn more about the State of the Video Industry download the full report.
Member ExclusiveMedia Briefing: A timeline of media unions’ actions this quarter
Media unions are working to get contracts signed by the end of the year, and are using strikes, pickets and rallies to try and accomplish those goals.
BuzzFeed, Hearst, other publishers, replace lavish holiday parties with more subdued celebrations
BDG, BuzzFeed, Hearst and The Washington Post will host in-person holiday parties this year, though they will not be the stereotypical soirées.
Member ExclusiveMedia Buying Briefing: The latest media agency estimates for 2023 revenue are out and they remain, well, upbeat
Two holding company media agency analysts continue to hold a more positive, if slightly tempered outlook on 2023 given strong results for 2022.
SponsoredHow Comscore is simplifying pre- and post-campaign measurement for advertisers
Produced in partnership with Marketecture The following article provides highlights from an interview between Greg Dale, Comscore’s general manager of digital, and Mike Shields, co-founder of Marketecture. Register for free to watch more of the discussion and learn how advanced advertising measurement is providing advertisers access to the deep data they need across all platforms. […]
The case for and against publishers continuing holiday-specific commerce coverage post-Black Friday weekend
Black Friday is over but publishers are up in the air about whether or not to continue covering holiday sales in the lead up to the holidays.
Why PMG’s Nike win doesn’t seem all that unusual for the indie media agency
The Texas-based independent agency continues to grow its roster of clients after landing Nike's media AOR business for North America.