• Report: Online Video Ads Gain As Augment to TV Spending

    Advertisers and agencies are funneling more money into online video advertising, and they’re taking more money from TV and online display ad budgets to make it happen, according to the latest “2013 Video: State of the Industry” report from Adap.tv and Digiday.
    The Q1 2013 report, surveying 759 advertising and digital media professionals, shows 72% of video buyers increased spending for online video ads over the preceding 12 months, spending an average of 53% more on the category. That’s more than double the average 20% spending increase recorded over the previous 12-month period. The spending increases are a sign of momentum with the report saying, "Those for whom online video is a marketing staple are ‘doubling down’ on the medium."

    If that’s the case, it might pose some risk to traditional TV budgets, which are being tapped more often to fund advertising newer digital media. The report shows 39% of buyers are getting money for online video advertising by shifting funds from TV budgets, up from 27% in the 2012 survey. On average, those buyers who are diverting money from TV are shifting 11% of TV budgets to online video.
    But it’s not as if buyers see an “either-or” scenario between the two mediums. 80% of buyers said they see online video as a complement, rather than a replacement, to TV. And 28% of the increases for online video ads reflect incremental spending, or “new money.”
    The bigger risk is directed at what the report calls the “humble banner.” 41% of buyers took money from budgets for online display ads to devote to online video. “Buyers continue to see their video campaigns to be much more aligned with TV advertising than display advertising, so the cannibalization of display may proceed even more rapidly than that of television spending with a viable third screen to feed,” the report said.

    Other findings: momentum swinging back toward direct ad buying from publishers, rather than ad networks and exchanges. That may be because more buying is happening now at TV upfronts. 31% of buyers said they patronize upfront presentations and buying opportunities, versus 19% last year. Also, the use of third-party validation of video audiences from Nielsen OCR or comScore Campaign Essentials has risen, with 52% of buyers using them now, versus 41% last year.

    Finally, interest in mobile video continues to rise, with 48% of video buyers buying mobile, up from 32% last year. Mobile video is also taking its place in the marketing mix as fully 82% of advertisers now think mobile video is a "viable complement to TV broadcast and online video."

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