• Study: 77% of Advertisers Plan to Increase Video Ad Budgets in Next Two Years

    More affirmation that advertisers and agencies are shifting spending to video: a new Forrester survey has found that 77% of advertisers and 70% of agencies plan to increase their video ad spending in the next 2 years. In addition, 73% of media companies plan to offer more video inventory to meet demand.

    The data is based on a survey Forrester conducted of 529 executives at advertisers, agencies and media companies in 8 countries, including the U.S., for a report commissioned by Teads.


    Media companies are mainly motivated to offer more video by the allure of higher CPMs (cited by 44%), followed by providing more engaging advertising to audiences (44%), drawing budget from non-digital ad budgets (19%) and generating revenue from non-TV spending (7%).

    But media companies have numerous challenges with video advertising, including reduced ROIs due to high cost of producing video content (cited by 44%), lack of dedicated sales teams (40%), lack of inventory (37%) and lack of familiarity with cost-per-view models (34%).

    To address the inventory shortage issue, Forrester asked about interest in "outstream" ads, a format Teads has pioneered, which essentially inserts video ads in non-video content. 69% of media companies said outstream ads would become more important than they are today, along with 70% of advertisers and 77% of agencies. The most-cited benefit to media companies (by 67%) of outstream ads was the ability to execute video ad sales programmatically.

    The full report is available for download here.

    Note, at next Tuesday's Online Video Ad Summit, Teads's SVP, Business Development Eric Shih, will be speaking on our "Wild West of Online Video Ad Innovation" session at 4:20pm. Learn more and register now!

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